Saturday, September 23, 2023

Income Tax: The Government will raise the floor to 1 million pesos


She Minister of Economy and candidate for president of Unión por la Patria, Sergio Massa has an announcement planned in the next few hours the Income Tax reform. Although he promised to eradicate it from the roots if he reaches Casa Rosada, for now I will update the apartment what will happen, starting next year, from the current $700,000 to seven digits: one million pesos.

If this provision, which has been on the political and economic agenda in recent weeks, is fulfilled, Nearly 800,000 workers will benefit from the new implementation.

The purpose, as it turns out, is that no worker pays a profit except for hierarchical positions that are most important and profitable, such as CEOs, managers and hierarchical positions in companies.

If known, This is the third update of the Revenue floor in 2023. In January of this year, it was $404,062. If it reaches a million, there will be an increase in the current year, by almost 150%.

It will happen in a highly inflationary context and with projections showing that the monthly CPI variable for August, which will be published by INDEC this Wednesday, not less than 11%; It may even equal or exceed numbers not seen before since the last Hyperinflation. In fact, Massa himself acknowledged, in recent days, that “August was the worst month in the last 25 years for the Argentine economy.”

Key meeting and mobilization

With this prize, this Monday afternoon, especially at 5 pm, will hold a meeting at the Palacio de Hacienda with his counterpart in Trabaho, Raquel “Kelly” Olmos on a day attended by authorities from Chamber of Deputies and leaders of CGT, CTA and other unions according to the Télam agency.

Among the famous people who will attend are Héctor Daer, Hugo Moyano, Carlos Acuña, Sergio Palazzo, Guillermo Moser and Hugo Yasky and so on.

And facing this meeting, The CGT formally came out to call the workers to mobilize in front of the building where it takes place.

The unions that make up the the Argentine Confederation of Transport Workers (CATT), the Banking Association and the Central Workers of Argentina (CTA) and so on.

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Therefore, it is expected that, throughout the day, on Av. Hipólito Yrigoyen at 200, meters from Casa Rosada, There is a great movement of people waiting for announcements.

The opposition rejected a reform of the Income Tax

At the moment, and as it is known, they are checked of alternatives to implement this change in the income tax structure: The first is to publish a DNU while, the second, and more complicated for the ruling party, send a bill to Congress.

From the opposition, they announced that they will reject a new update because different blocks They consider it necessary to eliminate the tax burden on salaries.

It should be noted that, a few days ago, Sergio Massa himself promised, if he reaches the Casa Rosada “or even before”, to abolish the Income Tax Actually.

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“If I am the president, the workers will not pay the income” he committed to the program one minute, conducted by Gustavo Sylvester, transmitted to the screen C5N. “I will send a law with the subject Revenue if I am president, or there before” he added.

This caused the opposition leaders to cross, who requested that, in his current capacity as Minister of Economy, he would make an immediate decision. “You can do it now. “Send the law we voted for” he challenged Cristian Ritondo head of the Together for Change bloc in the Chamber of Deputies, through the X platform (ex Twitter).

“The tax that should be abolished, as soon as possible, This is the ‘inflation tax’. Congress did not vote on it. Its rate is uncertain. Hit the poorest. Enough with the chamuyo skin!!”, wrote, for his part, the radical deputy Fabio Quetglas.

What will the new floor look like and which sectors will benefit the most?

Currently, with a minimum floor of $700,870, A gross salary of $800,000 pays an income of $117,690; one of $850,000 must face $135,190; another $900,000 pays $152,690; someone with $950,000 pays $170,190 and a gross salary of $1,000,000 must pay $187,690 in income tax, according to official data.

However, if the idea of ​​increasing the tax base to one million pesos is realized, For a net out-of-pocket salary of $667,998.69, the projected increase would be $117,690.32 (+21.4%).

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In this regard, for one of the $717,998.69 becomes $135,190.32 (+23.2%). Meanwhile, for one of the $767,998.69, will be $152,690.32 (+24.8%); for one of the $817,998.69, from $170,190.32 (+26.3%) and for one of the $867,998.69, from $187,690.32 (+27.6%).

Based on the projections of the Ministry of Economy, and as reported by the NA agency, The percentage of employees who benefit the most from the measure, according to the sectors in which they work, will be:

  • Industry (19.13%)
  • Defense, security, education and public administration (14.5%)
  • Financial intermediation and insurance services (11.94%)
  • Communication (7.84%)
  • Transportation and storage services (7.71%)
  • Private education (6.33%)
  • Wholesale and retail business (5.82%)
  • Exploitation of mines and quarries (5.82%)
  • Service provision (8.10%)
  • Supply of electricity, gas, water and sewage (5.06%)
  • Construction (3.11%)
  • Human health and social services (2.91%)
  • Accommodation services and food services (0.90%)
  • Agriculture, livestock, forestry and fishing (0.65%)
  • Other activities (0.20%)
Nation World News Desk
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