Earnings: How much will the worker lose if the salary tax floor is not raised?

A single childless worker who in January earned $ 225,000 gross non -taxable Earnings. If from February to June you received a salary increase of 26% (3 installments of 8%), less than the expected inflation (30% or more), due to the lack of a salary update “floor”, will have a Semester Earnings discount of $ 69,649. Thus, you will suffer a double loss of wage purchasing power: in relation to inflation and because of the Income discount.

The calculation, of the tributary Cesar Livin, showing a loss until June in worker income if the “floor” salary increase is applied from July, as Minister Martín Guzman said. If so, the collection of the half Christmas bonus that workers will receive in June is also subject to tax. At these times it is discussed whether the bonus is “in” or “out” of the tax.

In turn, those already covered by Profit for having incomes higher than the “floor” salary also pay more because The Non-Taxable Minimum remains the same amount as in January throughout the yearwhen inflation and wage projections exceed 60%.

Another important fact is between February and April more than 100,000 workers and retirees exempt began to have discounts for Revenues, according to Sergio Massa, who returned to the fight and urged Minister Martín Guzman to raise the salary “floor” in a letter he sent to the Minister of Economy on Tuesday, with a copy to President Alberto Fernández, reiterated the need to raise the salary “floor”.

Thus, Massa said that “according to databases, in February 2022, the number of workers and retirees” withheld “income tax was 742,964 and this number rose to 847,878 in April of the current year., a 14% increase in just two months. ” In June, the amount of earnings reached more than one million dependent workers.

In this way, the controversy no longer refers to raising the salary “floor” of Revenues-which the Executive Branch is empowered by Congress-but rather the moment it becomes effective. Last year, the standard was applied to maintain that only 10% of workers in a dependency relationship pay earnings.

The economy wanted to change that criterion and announced that it would apply that index combine inflation and wage trends but only in July.

Meanwhile, Litvin said that because of the inflation rate, “it’s important fix all personal deductions, not only Personal Deduction but also Non-taxable Minimums and family charges and other deductions with automatic quarterly updating of all charges and the IPC aliquots table. ”And added he that “when the minimums are exceeded, the tax is configured at the highest step, from a rate of 19%. And because the following scales are so short, the percentage of Income reduction increases rapidly (up to 35%), which further hurts the pockets of workers ”.

On the other hand, Litvin said the priority is to equalize the self-employed with the deductions of wage earners because the MNI in this segment of independent workers or professionals is lower and they pay huge Profit for the same income.