“We’re seeing it.” a spokesperson responded briefly when asked about the version that could also be the reinstallation of the income tax included in a DNU (Decree of Necessity and Urgency).
When Clarion they asked the tax experts, they underlined that this is a very risky option, since it is a modification of the tax system that always requires congressional approval.
The possibility of Ganancias ending up in the DNU had been raised from the beginning in Javier Milei’s team, but in the end the decision to manage it through Congress prevailed.
Restoration of profits will allow co-participationr revenue with the Provinces, despite the governors asking for another solution: the sharing of the tax on the allowance. The president objected.
The truth is that profits represent an important mass of resources, in approximately 1 point of GDP by 2024, of which over 50% would no longer reach the Provinces. Last Thursday Milei finally called extraordinary sessions between December 26th and January 31st. The agenda includes cancellation of income tax exemption for workers, the single paper vote and state reform.
Saturday evening, on Mirta Legrand’s program on Canale 13, the host asked Milei about profits, a law that he himself voted for. The President said reversing this law will help offset the provinces’ loss of resources.
And he stopped: “I will not share the tax on the check. If they don’t want to restore it, we will further reduce transfers. It’s about remedying the fiscal disaster that the elimination of Profits has caused to the Provinces. As part of the stabilization program we recognize this problem and are willing to help the provinces restore it,” she said.
The Earnings reform voted in Parliament so far provides that only the Earnings will have to be paid people with wages above 15 minimum wages, Vital and Mobile (SMVM), which is currently equivalent to $2,340,000 monthly grossS. It is estimated that only about 88,000 taxpayers will pay with this scheme, that is, less than 1% of the total employees, pensioners and pensioners of the entire country.
About 800,000 people stopped paying that tax. But with the reform proposed by Milei, the minimum threshold for paying profits It stands at $974,000 per month. According to the calculations of the ministry led by Luis Caputo, the revocation of the increase in the taxable minimum gThis would result in an increase in revenue equal to 0.4% of GDP. Congress will deal with this in extraordinary sessions.
Source: Clarin
