Argentina reduces number of people who pay income tax

[peppertree]

Argentine President Alberto Fernández signed legislation on Tuesday raising standard deductions for federal income taxes, providing economic stimulus after a 10% fall in GDP last year.

The bill, introduced by House Speaker Sergio Massa and passed in the Senate on April 8th, will double the standard deduction to 150,000 pesos ($1,527) monthly for a single earner with no dependents.

The tax cut is projected to cost up to 50 billion pesos ($509 million) this year - a small share of the 7 trillion pesos ($71 billion) in projected federal revenues.

"With this bill we would return to the historical situation where only 7% of workers would pay income tax," House Budget Committee Chair Carlos Heller explained before its House passage in March 28th.

"We are talking about 1,267,000 workers and retirees who would stop paying it."

Currently, some 2.3 million earners pay income tax (19% of all registered workers) - in brackets ranging from 5% to 35% (most pay around 10%).

Most Argentines, whose income in January averaged 57,846 pesos ($632), pay no income tax - but face high social security and federal sales taxes.

The number paying income tax had risen by 91.7% during Mauricio Macri's 2015-19 administration - mainly by way of bracket creep, as prices quadrupled in four years.

Taxes on corporations, exporters, and the wealthy were meanwhile cut.

Macri had been narrowly elected in 2015 on promises that "no worker would pay income tax in our administration." An additional 1.1 million did so by 2019.

At: https://translate.google.com/translate?hl=&sl=es&tl=en&u=https%3A%2F%2Fwww.valoraanalitik.com%2F2021%2F04%2F21%2Fargentina-reduce-numero-personas-pagan-impuesto-ganancias%2F

Argentine President Alberto Fernández speaks after signing legislation raising the federal income tax floor.

The bill, representing a tax cut of up to $500 million this year, benefits nearly 1.3 million middle-class earners - most of whom had been pushed above the standard deduction by bracket creep during the right-wing Macri administration (2015-19).

[Judi Lynn]

1. President Fernndez is a god-send. Wow. This is going to help so many suffering families.

The numbers from Macri's seige are hideous. Quoting the material posted:

The number paying income tax had risen by 91.7% during Mauricio Macri's 2015-19 administration - mainly by way of bracket creep, as prices quadrupled in four years.

Taxes on corporations, exporters, and the wealthy were meanwhile cut.

Macri had been narrowly elected in 2015 on promises that "no worker would pay income tax in our administration." An additional 1.1 million did so by 2019.

I guess he showed them a thing or two! How could he imagine they would want more of the same with a second term for him?

This direction taken by President Fernández is going to resonate so well, start reviving the hope the country has needed, in its time of desperation. It'll buy them "some breathing room" which they desperately need.

Thank you.

[peppertree]

2. Well said. Macri's 2015 "no income tax" promise should've been a dead give-away to voters

Reminds me of a certain far-right political party here in the U.S....

[Judi Lynn]

3. Wow, what a repulsive collection! They are smug, arrogant, dull-witted, boisterous and ugly.

They resemble a group of trolls and very used-car salesmen. Maybe a few tv evangelists in there, too.

Wow. What a view! The photographer probably had to bring a barf bag to use immediately after the shot.