Alberto Fernández wants to force Congress to vote on the unexpected rent

Still shaken by the abrupt departure of Matías Kulfas after the escape of a misregister from his portfolio that threatened to thwart the rapprochement between the president and Cristina Kirchner, on Monday the government finally presented the unexpected income tax. It’s a amendment of the Income Tax Act for the application of a one-off rate about 400 companies, which the Executive wants to be approved by Congress.

“I feel that we have an obligation to give this debate and Congress has an obligation to accompany and approve this law. As Martín rightly said, it is not an obligation of the Frente de Todos, it is a obligation of all deputies and senators“, underlined Alberto Fernández, presenting the initiative together with Martín Guzmán at the Bicentennial Museum in front of an audience of ministers, governors, trade union and social leaders and some businessmen.

The measure that will arrive in Parliament in the next few days creates a 15% income tax surcharge for companies that have won more than $ 1 billion in 2022, favored by the increase in international prices following the war in Ukraine and whose benefits do not derive from productivity improvements, greater investments or greater production, but from the new global context.

“A society is where everyone wins, when some win many and millions become poor, it looks like a scam, and we are not here for scams. We have come to balance what has been unbalanced, we do not break any rules adopted by the cylinder, it is something that the world has done before and now, “the President said, comparing the proposal with similar initiatives in the UK, Italy and the US.

In turn, the Minister of Economy reviewed the context opened by the war in Ukraine, global inflation and the economic crisis “shock” in the distribution of income from rising food and energy prices, and justified the need to create a mechanism to tax unexpected incomes. “If nothing is done, the consequence is greater inequality and worse functioning societies,” she said.

As explained, the mark-up will be applied to tax net profit (according to the affidavit) or book net profit (according to the balance sheet) above $ 1,000 million in fiscal 2022 that grew above inflation. And it must meet one of the following two conditions: that the accounting result exceeds billing by 10% in 2022 or that the profits are 20% higher than in 2021.

Guzmán worked out the details with his technical team during the day, most notably with the secretary of fiscal policy, Roberto Arias. Then, in the afternoon, he saw them again with the President at Casa Rosada and only at night, after unexpected power outages in his ministry, The first draft began to circulate. In Economy they claim to have it ready 10 days ago, but it was rushed after Cristina’s request to Alberto that “Use the pen.”

During the act, which did not exceed 25 minutes, the President took note of art delays in moving forward with the initiative that was revealed on April 11 by Guzmán on TV and then confirmed days later during the announcement of a reinforcement bonus of up to $ 18,000. That first reaction from the government coincided with Kirchnerism’s demands to raise withholding taxes and to get the IFE afloat, after learning of record inflation of 6.7% in March.

Since then, the proposal has garnered some support in the Frente de Todos – La Cámpora has never openly endorsed it – and in the IMF’s apparent nod to a temporary increase in taxes on “excess profits”. But almost immediately he ran into the strong rejection from the business community, including the UIA, the EEA and a tractor by rural producers. Eventually, when he appeared buried, Cristina’s reappearance and Kulfas’ expulsion forced him to swell.

In Economics last night they assured us that the measure will come maximum 400 companies. The new rate will be applied to balances accrued after the law comes into force and for one year from that date. The government wants to collect approximately $ 200 billion in 2023, which will be “shared”, which will mean more resources for the Provinces and the Executive, just when a goal must be achieved fiscal deficit of 1.9%, as agreed with the IMF.