Caputo creating a tax haven for dollars "from wherever"

[Redpossum]

Una guarida fiscal para atraer dólares "de donde sea" | Desregulación e incentivos al uso de dólares no declarados, propuesta de Caputo

Un blanqueo automático y permanente por resolución o decreto. Eliminación del control de origen de fondos del GAFI a "dólares encanutados". La necesidad y urgencia tiene cara de lavador

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The usual Google Translate deal, banner is in Castellano and story will initially appear in that tongue, but wait a few seconds and it will change to English.

The Minister of Economy announced that the government is preparing a "battery of measures" to deregulate and encourage the use of dollars held by the public without requiring anyone to justify their origin. Its implementation, through tax incentives for purchases in dollars and the elimination of regulatory standards to verify the legitimacy of the funds, will be carried out through resolutions from the Ministry of the Economy, the Central Bank, ARCA, and the UIF, as anticipated by Luis Caputo. This means that unlimited money laundering and tax reform would be imposed without going through Congress
...

Alejandro Vanoli, former president of the Central Bank, stated that "There is a clear objective here: the government wants exchange rate and price stability until October. And to achieve this, they are willing to do anything. The lack of dollars was disguised with the IMF disbursement, but we continue with a model where more dollars are leaving than are coming in.

 

[Johnny]

Olly olly oxen free.

 

[Quilombo]

I feel like there's some sort of mass psychosis going on between the IMF, Milei, Caputo, and their supporters.

As Red points out, the IMF loan didn't change the fundamentals: the BCRA still spends/owes more than it collects in taxes as it's balance sheet is a net negative. I got in an argument with some Mileistas that this loan was actually good unlike Macri's because it financed the country's previous debt at a lower cost of borrowing. This true for only as long as you spend said money on servicing the debt the BCRA already contracted, NOT making the dollars available to every Tomas, Ricardo, y Enrique vía Home Banking.

Now, even if you let every member of Los Monos, Aduana employees in Santa Fe, and K, Macrista, LLA politician that takes their dollars to Paraguay or Miami launder their money no questions asked this time to buy fridges and cars, the problem remains that said Electrolux or Renault Logan costs double for the same model in neighboring Brazil, and it's the dwindling middle class that's needed to reactivate the economy, not people that never eat at home because they get takeout from Don Julio.

Finally, my principal concern as I alluded to is the idea that we simply need to get the dollar to be $1,000:$1, which totally negates the fact that even at $1,200:$1 we have the highest prices for everything from Coca Cola to Yogurt to Coffee in LatAm, so this will only get worse should there be a 20% reduction in the value of the dollar, and further exacerbate the collapsed consumption as people only purchase what they need to survive.

To make a long story short, Caputo and Milei are betting still, despite all evidence to the contrary, that deflation is possible when they're still struggling to get inflation under 2%-3% a month despite the chainsaw, pensioners and teachers in poverty, and highways being left to ruin.

Anyways, just this pleb's thoughts, I'm not an economist like Dear Leader, but I am someone who lives in the real world unlike them it seems...

 

[antipodean]

Would this not suit the vast majority of expat on this forum who have undeclared foreign income and assets??

 

[Che1990]

Would this not suit the vast majority of expat on this forum who have undeclared foreign income and assets??

Only for property or depositing USD for daily spending, as Quilomba points out everything is so expensive here and will only get more so in USD if it goes to $1000, that it makes no sense to buy a single thing with dollars here.

I only buy the bare essentials to survive in Argentina, like food.

I purchased melatonin from Grabr from the US the other day, it cost a third of what it does here in Farmacity. I buy clothes and sports gear in Uruguay. I even bulk bought tooth floss in Colombia.

This plan is doomed to fail, they need to scrap all import taxes and open imports to force local businesses to compete. And let the peso truly float freely to incentive dollars from out under the mattress and into the formal economy.