Javier Milei Ended a DC-Sized Deficit in...Nine Weeks

[zensailor]

If DC shut down half the government's departments and services - the average Joe wouldn't even notice.

BS

 

[Ries]

The entire argentine tax system is built to protect inherited wealth. The Casta wrote it, and Milei is doing nothing to change that.
As of September 23, only about 90,000 people in the entire country are eligible to pay personal income taxes. Milei voted for this bill as a deputado. https://www.batimes.com.ar/news/arg...ns-from-paying-income-tax-as-vote-nears.phtml

Now, the NEW Milei, of course, wants to change that by making poor people pay more taxes...

Milei seeks to increase number of Argentines paying income tax

Proposal that will be sent to Congress on Tuesday establishes that individuals making more than 1.3 million pesos (US$1,583) a month should by paying income tax.

www.batimes.com.ar

Argentina has no inheritance or gift tax, virtually no real estate taxes (a very small bienes in BA province only), and as a percentage of GDP, corporate taxes are very low, compared to most countries.
The rich own almost all the arable land, and pay no taxes on it.
While there is a capital gains tax, virtually nobody pays it.

Argentina's ratio of taxes to GDP is about average for countries around the world, and very close to the US rate. (argentina- 29% vs USA- 27.7%)
The difference here is the vast majority of Argentine tax income is IVA (very regressive) and Pension taxes on wages, along with the wacky export tax on agricultural products, which is politically unobjectionable, as only a very few big corporations pay it.

https://www.oecd.org/tax/tax-policy/revenue-statistics-latin-america-and-caribbean-argentina.pdf

what argentina needs is comprehensive tax reform, to balance the taxes paid with the profits being made.
Milei has no interest in this. Its work, will take time, expertise, and compromise.

 

[Reply Guy]

The tax code is indeed a disaster.

I know people want to blame everything on Milei, but he has been president for 3 months and the Peronists have been running Argentina for 22 of the last 30 years. They have had more than enough time to come up with a sensible tax code, but have failed to do so.

Since when is a salary of $1,500USD poor in Argentina? It's 7x the minimum wage.

 

[nikad]

When the IMF and the US ambassador publicly state that the current administration has to think of the vulnerable and the poor, it leaves you wondering if Milei is taking this too far..

 

[Reply Guy]

The IMF and the US ambassador couldn't care less about the poor.

They care about their control over Argentina.

 

[nikad]

The IMF and the US ambassador couldn't care less about the poor.

They care about their control over Argentina.

It is possible, however these warnings I have never heard before ( I believe they are anticipating social unrest )

 

[JeffR]

The IMF and the US ambassador couldn't care less about the poor.

They care about their control over Argentina.

Yes! Impoverishing people to get a pat on the head from the IMF (and access to more debt) is nothing to be praised for or to be proud of.

 

[NeoWonk]

The IMF had decades to get Argentina to reduce the size of the public sector in exchange for loans - they never did it.

The IMF failed the Argentine people and hopelessly indebted them.

 

[JeffR]

The IMF had decades to get Argentina to reduce the size of the public sector in exchange for loans - they never did it.

The IMF failed the Argentine people and hopelessly indebted them.

When you look at the IMF's behavior with borrower countries around the world, one can easily make the argument that both the failure and indebtedness are intentional, not just in Argentina.

 

[Johnny]

When the IMF and the US ambassador publicly state that the current administration has to think of the vulnerable and the poor, it leaves you wondering if Milei is taking this too far..

They are covering their butts. They can claim down the road that in their own way they tried to rein in Milei.