jp said:The point is that this hits lower middle class family income harder than anyone. People earning a household income of 3000 pesos are not rolling in benjamins, this tax cut hits a demographic which is struggling anyway.
Upper middle class and wealthy people can bear the cost albeit grudgingly, but this is the sort of measure that can actually increase poverty by pushing already struggling families over the poverty threshold by taking a significant bite out of their income.
More on the definition of poverty here:
http://www.indec.gov.ar/principal.asp?id_tema=84
Poverty is a relative measure and based on ability to buy essential services and food. Whilst the very bottom tier of society might be unaffected by the price hike, the next tier up will get hit very hard. This isn't the rich losing a subsidy, its almost everybody getting hit equally, including those least able to pay.
That's why the people that use the most have to pay the most. And that's also why the lower middle class you talk about is less hard hit then the upper middle class and upper class