Is President Kirchner Improving The Lives Of Argentinos?

[trennod]

Half the economy of brazil and chile is in negro too. Its a common trend in latin america (and less developed countries for that matter).

Argentina is still a highly taxed country.

 

[jp]

Technically Argentina has one of the highest tax rates in the world - a total tax rate of 108% on profits. Only Comoros, The Gambia and the Democratic Republic of Congo have higher tax rates.

But the numbers are a little deceptive, because whilst the tax rate is ridiculous, its overcompensating for endemic tax avoidance. A system that requires you to pay more than you earn has tax avoidance built into the model. You are expected to avoid paying tax. Its not even possible to do business without avoiding paying tax (or at least thats what a 108% tax obligation implies).

So yes the tax rate is high, but the system is woefully inefficient due to rampant corruption and endemic avoidance.

Here's the 2013 PWC report on paying taxes: http://www.doingbusiness.org/~/media/GIAWB/Doing%20Business/Documents/Special-Reports/Paying-Taxes-2013.pdf

 

[Matiasba]

Matias do you have a link to that article you read? I would be interested to have a look at it.

No I dont, I read it in a magazine while waiting the dentist, but I believe it was Noticias or some one like that. It was probably old so go figure.

Dublin2BsAs: Corruption is sadly a big part of the society. Today, and taking how the political system is constructed, you just cant be a leader and not be corrupted. Everyone above you is corrupted and everyone below you it is as well. You have to be very dumb and nobody will respect you. As for private corruption, the presidents of Multinationals or big enterprizes are at the same level of politicians, in fact, lots of them in Latin America got into the politics, like the brand new president of Paraguay, the president of Chile, Macri, etc.. they are the same, these enterprizes are a big political actor and they defend their interests and the private sector in general against the State. There are a lot of chains of enterprizes that support them, outsourcers, etc, and this political game with the State has a lot of negotiations, it is very complex, the government sometimes must allow a lot of manoeuvres like avoid (part of the) taxes. You just cant tax and do it by force. Dont forget that big enterprizes appart from investment in the country, give a lot of people, of argentine people, quality work, en blanco. That is something every government wants.

 

[trennod]

I actually agree with you. My point is that tax evasion is high, but in terms of collection of tax revenues shortfall is largely compensated by high tax rates. In an ideal world, we would have low tax evasion and lower tax burdens!

What I don't agree with though is that tax evasion is such a large problem and was responding to bajo ceros comment. The ks love to use this line but tax evasion is endemic in all of Latin America, Chile for eg still has a large problem as do Brazil.

Maybe if this government tried to not be so corrupt (and heaven forbid impart it on the society), this country could advance. Matias I agree with you, it's totally systemic.

 

[ajoknoblauch]

Argentina lacks confidence (men)? Did nobody see "Nine Queens?"

 

[Matiasba]

it's totally systemic.

Its cultural, as former president of Uruguay once said, "los argentinos son todos unos ladrones", couldnt agree more. From the verdulero to the taxi driver that take advantage, the big entrepreneur, people who work for the State -and the State is enormous- the "viveza criolla" that always make me feel embarassed when with a foreigner, the "me cago en el otro" attitude, so common in Argentina but not so common in Uruguay or Chile (according to what people say)... this country have had so many "every man for himself" experiences, like dictatorships that intervented sindicates and every single political meeting, or menemismo, which was a huge factory of unemployment and poverty, that made it what it is now. It is veeeery difficult to change that.

 

[Yogur griego]

Its cultural, as former president of Uruguay once said, "los argentinos son todos unos ladrones", couldnt agree more. From the verdulero to the taxi driver that take advantage, the big entrepreneur, people who work for the State -and the State is enormous- the "viveza criolla" that always make me feel embarassed when with a foreigner, the "me cago en el otro" attitude, so common in Argentina but not so common in Uruguay or Chile (according to what people say)... this country have had so many "every man for himself" experiences, like dictatorships that intervented sindicates and every single political meeting, or menemismo, which was a huge factory of unemployment and poverty, that made it what it is now. It is veeeery difficult to change that.

For the first time ever, I actually completely agree with your post.

 

[Yogur griego]

Ahora viene el yogur!!!!

 

[nativexpat]

Its cultural, as former president of Uruguay once said, "los argentinos son todos unos ladrones", couldnt agree more. From the verdulero to the taxi driver that take advantage, the big entrepreneur, people who work for the State -and the State is enormous- the "viveza criolla" that always make me feel embarassed when with a foreigner, the "me cago en el otro" attitude, so common in Argentina but not so common in Uruguay or Chile (according to what people say)... this country have had so many "every man for himself" experiences, like dictatorships that intervented sindicates and every single political meeting, or menemismo, which was a huge factory of unemployment and poverty, that made it what it is now. It is veeeery difficult to change that.

Agreed, but you forgot to add that the current government is the same as all others. Please, dictatorships, menemismo... what about CFK? Oh yeah, right, she is different. C'mon. What do you think of Lorenzino? Aren't you ashamed of that episode as well? Or Moreno telling protesters to stick their pots into their asses? Or Anibal Fdez escaping in his car's trunk in Quilmes? Shocklender and Sueños Compartidos? CFK´s sudden fortune as a very successful lawyer (helped by the dictators you mentioned) Of course it will be very difficult to change that.

 

[Bajo_cero2]

To assert that this government is the same than de la rua or menen is to be blind, missinformated or to have the will to confuse the reader.

Menem and de la rua behaved like employed of the imf and it means that they were not ruling for the good of the argentines. We all know how did it finished.

You might agree or not, but the big difference of the K is that the do rule for the benefit of argentines:
A) they paid 100% of the debt with the MFI to avoid its interference in the economy (every country that follow its requests has a social and economy disaster)
B) about 2.500.000 notebooks for public schools students;
C) the social help is attach to send children to achool;
D) the complains about the indec are naive because the k saved a lot of money with the fake statics;
E) nationalization of ypf.
And so on.