When the creation of wealth and employment is a sin … the tax will appear on “unexpected income”.

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When the creation of wealth and employment is a sin ... the tax will come out

Minister Martin Guzman.

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Government aims to “guarantee” that exogenous shock product of the war between Russia and Ukraine will have no effect “uneven and regressive” (textual) in our society, where it will be tested get some of the unexpected rent for companies with net taxable income exceeded $ 1 billion in the year and also the result should increase significantly in 2022 compared to 2021 period.

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It should be noted that 2021, the base year for calculating the increaseis an easy barrier to overcome because it was influenced by low economic activity as a result of the coronavirus pandemic and the known restrictions on activities.

In a situation of lack of growth, lack of employment and increasing povertythe projecting of the new tax, in addition to the 164 already implemented, seems a real nonsense that pay attention to legal certainty. It should be noted that the companies trying to attract tax are already paying income tax at an effective rate of 39.55% (35% for the company and 7% in dividends for the shareholder). Exceeding this high percentage of taxation can be excessive, therefore confiscating and violating the Right to Private Property guaranteed by the National Constitution.

Scientists have proven that when the tax burden becomes excessive, the loss of collection due to discouragement of investment, flight of capital and entrepreneurs seeking countries with reasonable taxes make a irreversible damage to the economy. To give a striking example, in France, when a Tax on Large Fortunes was created Only 2,600 million Euros were raised, but instead it cost 125,000 million Euros due to the flight of residents. In our country, the exponential increase in Tax on Personal Assets from the year 2019 includes the ASE (Extraordinary Solidarity Contribution) called Wealth Tax, Extraordinary and for a Only Time ???, Caused a large number of tax residence changes in Uruguay, accepting them with open arms and low taxationn.

It is necessary to identify some key important aspects of the idea -we have not yet called it a project -such as: topics, rates, tax base, time period, calculation of accrued losses, etc., that need to be considered. with greater precision.

However, the ranking prepared by the World Bank should be considered, which measures the percentage allocated by the State from business revenues and puts Argentina in a terrible place, penultimate, surpassed only by a distant place. in Africa, the Comoros Islands. . The average for Latin America and the Caribbean was 46.78%, North America 30.55%and the OECD countries were 41.63%, Argentina was 106.3%. That means a company earns $ 100the privileged partner “the State” Previously, it reached $ 106.30 in the treasury.

Are the planets aligned for a perfect storm?a: countless restrictions and regulations, uncontrollable inflation, shortages of basic inputs and now there will be new taxes. If approved by the Legislative Power (I have my serious doubts), it will have a negative impact on economic growth, investment and employment.


Source: Clarin

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