By Libertad Y Progreso
While the Senate prepares to debate the modifications to taxes on Personal Assets on Wednesday (12/29), Fundación Libertad y Progreso expresses its rejection of the measures regarding national and provincial tax policy that will lead to the creation of new taxes and the rise of those already in existence.
The organization warned that “it is a path that reduces economic freedom and will do nothing but discourage investment, destroy employment and scare away innovation. Poverty will inevitably deepen.”
Let us remember that last week representatives approved the bill that modifies the tax on Personal Assets raising the non-taxable minimum and increasing the rates that were “already at confiscatory levels“.
In principle, the senators from the Frente de Todos will seek to pass their party’s initiative into law. It was unanimously approved by the upper house months ago, but then the ruling party left it on standby in the lower chamber and this year’s end it resurfaced due to the demand of the opposition. By the way, it will be the first session of the Upper House without the ruling party having it’s own quorum.
Thus, the government will need the support of legislators Alberto Weretilneck and Magdalena Solari Quintana to enable the debate and sanction the project.
Meanwhile, on the other side, it is expected that the opposition will have the support of María Clara del Valle Vega, from La Rioja, a regular ally.
THE DEEPER ISSUES
Libertad y Progreso states that “they must be compared with real returns on capital and, considering that taxes are applied to savings that at the time went through the payment of Income Tax double taxation is created including provincial taxes. To make matters worse, the value of the assets is determined without previously subtracting the liabilities incurred to build or buy them”.
On the other hand, the foundation warns that the “2022 Fiscal Consensus” will result in tax increases that will not return autonomy to the provinces, but will make the backpack even heavier on the private sector.
Thus, “the federal tax co-participation system should be reformed to provide greater fiscal correspondence and encourages provincial governments to spend less and more efficiently.“
They believe that the approval in the Senate will lead “to an increase in rates, that will result in a fall in investment and consequently in employment and the level of wages.”
On the closing of the message, Libertad y Progreso calls for “the ruling class to assume its responsibility in the face of the serious economic and social situation in the country. Citizens should remember the commitment not to increase taxes assumed by the different parties for the general elections last November 14th ”
Furthermore, it exhorts the leaders of the ruling party to “put the good of the country before ideology and demagoguery“, and those of the opposition “to avoid cracking and irresponsible and negligent actions“.
Libertad y Progreso is a public policy research center created from the merger between CIIMA, Foro Republicano and Futuro Argentino.