Of five days worked, three go to pay taxes

[on the brink]

No wonder so many choose to work "en negro"
The note is in Spanish, with a good table illustrating the tax load.

El peso de los impuestos: de los cinco días de la semana, tres se trabaja para el Estado

Según un estudio, de acuerdo al nivel de ingresos, los empleados tardan entre 181 y 214 días en pagar todas las cargas tributarias.

www.clarin.com

 

[antipodean]

And what do those taxes buy those who pay them exactly?

 

[on the brink]

They buy "planes sociales" for the Ks, and votes to keep them in power.

Still, it could be worse - I remember when my US taxes went to pay for the Iran and Afghanistan wars.

 

[EL_TIGRE_de_Tigre]

And what do those taxes buy those who pay them exactly?

Here is a serious reply to your question without any sarcasm:

For every citizen, resident, illegal and tourist "EVERY HUMAN BEING!" ... all taxes paid by the tax payers ... pay for the running of the government and all that it provides.

Essential services and infrastructure are generally available and consumed or used by everyone at one time or another. Some of the ones I can readily think of are:

Fire, police, ambulatory services as well as border protection and national defense. Maintenance and upkeep of public roads, bridges, etc ... along with trash collection and in some cases public heath care.

I think that the above list (As incomplete as it may be???) is what I would refer to as TIER1 in terms of what is done with taxes collected.

TIER2 (Again very incomplete here!) is stuff like public services ... court system, registry, libraries, public spaces and gathering areas.

TIER3 (AGAIN - Even more incomplete!!) Publicly funded attractions or entertainment ... Museums, monuments, celebrations on a city, provincial or federal level.

And of course ... to pay for all those who work in the system and are dependent upon it. (Low or no income individuals and families who are at the mercy os welfare assistance.)

And truthfully, you can argue for or against some of this stuff quite well. The real challenge that I see is to not have waste, but with every person having a different point of view and need ... it is impossible to just provide what one would consider the essential public services. Therefore, taxes are levied, funds are collected and programs are funded. In a sense, the money gets spread around.

WIth human nature being what it is, there is theft in one way or another by service providers to the government and by it's employees.

That's it in the nutshell.

 

[antipodean]

Here is a serious reply to your question without any sarcasm:

For every citizen, resident, illegal and tourist "EVERY HUMAN BEING!" ... all taxes paid by the tax payers ... pay for the running of the government and all that it provides.

Essential services and infrastructure are generally available and consumed or used by everyone at one time or another. Some of the ones I can readily think of are:

Fire, police, ambulatory services as well as border protection and national defense. Maintenance and upkeep of public roads, bridges, etc ... along with trash collection and in some cases public heath care.

I think that the above list (As incomplete as it may be???) is what I would refer to as TIER1 in terms of what is done with taxes collected.

TIER2 (Again very incomplete here!) is stuff like public services ... court system, registry, libraries, public spaces and gathering areas.

TIER3 (AGAIN - Even more incomplete!!) Publicly funded attractions or entertainment ... Museums, monuments, celebrations on a city, provincial or federal level.

And of course ... to pay for all those who work in the system and are dependent upon it. (Low or no income individuals and families who are at the mercy os welfare assistance.)

And truthfully, you can argue for or against some of this stuff quite well. The real challenge that I see is to not have waste, but with every person having a different point of view and need ... it is impossible to just provide what one would consider the essential public services. Therefore, taxes are levied, funds are collected and programs are funded. In a sense, the money gets spread around.

WIth human nature being what it is, there is theft in one way or another by service providers to the government and by it's employees.

That's it in the nutshell.

For sure it funds a large portion of these things - but compared to the value you buy with your tax in EU, Japan or Canada etc. the 20 something % of the population in Argentina that are part of the private sector and subject to taxation get fairly little in return.

For example, they generally supplement the security provided by the state with private security. They generally supplement health care provided by the state with private cover. They generally supplement education provided by the state with private education. Most even supplement public space and infrastructure with private neighborhoods and complexes. Then when it comes to deriving value from the broader social well-being or development, the state puts barriers in front of them and their businesses while stunting social mobility, meaning the taxable base gets smaller and needs to pay more to compensate further eroding quality.

Perhaps if they felt that their tax dollars were returning qualitative value and not just funding a self-serving, corrupt or over inflated state that delivers less quality each time, they would feel better about paying them.

 

[on the brink]

Wouldn't it be wonderful if we could earmark what our taxes should go to?

I never complained about paying taxes in the US, even during wars - figured it was part of the package.

But it is a different story here - I try to avoid paying IVA, as it goes to fund a terminally corrupt government.

 

[Ronnie Hotdogs]

Wouldn't it be wonderful if we could earmark what our taxes should go to?

I never complained about paying taxes in the US, even during wars - figured it was part of the package.

But it is a different story here - I try to avoid paying IVA, as it goes to fund a terminally corrupt government.

Do you live here?

 

[EL_TIGRE_de_Tigre]

For sure it funds a large portion of these things - but compared to the value you buy with your tax in EU, Japan or Canada etc. the 20 something % of the population in Argentina that are part of the private sector and subject to taxation get fairly little in return.

For example, they generally supplement the security provided by the state with private security. They generally supplement health care provided by the state with private cover. They generally supplement education provided by the state with private education. Most even supplement public space and infrastructure with private neighborhoods and complexes. Then when it comes to deriving value from the broader social well-being or development, the state puts barriers in front of them and their businesses while stunting social mobility, meaning the taxable base gets smaller and needs to pay more to compensate further eroding quality.

Perhaps if they felt that their tax dollars were returning qualitative value and not just funding a self-serving, corrupt or over inflated state that delivers less quality each time, they would feel better about paying them.

OH! SHOOT!

It was so darn obvious! How could I have missed the educational system? YES >>> PUBLIC EDUCATION is a huge line item funded by taxes!

NICE! - I clearly missed that one ... great catch!

Ok ... to reply to your reply!!

Private neighborhoods, private education, private healthcare etc ... but these are the BIG 3 for sure.

Any person or family, regardless of geography in the world, in most instances has the option of using what is publicly funded. Yet, people opt for the privatized version and pay out of pocket for it. So in a sense, they are paying double, or perhaps much more than double if the privatized version is richly priced enough. BUT >>> It is OPTIONAL!

I know, one could argue that if the public version was better run, offered more or a better quality ... one wouldn't have to go the private route.

FAIR POINT! BUT - It is optional. Your taxes did make the public version available to you, but you chose something better, or different.

Some people argue that if one goes the private route, they should get a voucher or tax credit from the public system to offset their decision / cost to be with a privatized provider. I disagree with the point of view ... here is why:

Any system that is public and is available to everyone, needs everyone to fund it. The system would be weakened or not viable without everyone's support. And it is imperative to have public education, security and health services where geographically available.

Most certainly there is less satisfaction with public services and the frustration that one is funding it without any choice to opt out. Also, the quality of private can be disappointing as well and the choice of opting out / not funding it is always present.

What is the solution?

If you are a strong willed person ... GET INVOLVED and try to make changes. That is beyond most people (ME INCLUDED!) but that is the avenue of recourse as I can see it.

 

[EL_TIGRE_de_Tigre]

Wouldn't it be wonderful if we could earmark what our taxes should go to?

I never complained about paying taxes in the US, even during wars - figured it was part of the package.

But it is a different story here - I try to avoid paying IVA, as it goes to fund a terminally corrupt government.

They system would not function properly if tax payers opted in and out of programs they supported / didn't support.

The solution is to be as tax efficient as one and be and to take advantage of as much as you can that you are paying for anyway.

 

[FrankPintor]

I pay 33% of gross salary here in deductions (which include the "obra social"), not taking employer's contributions into account. Can't read the paywalled article, though, so I'm not sure how they get 60% deductions.