An interesting controversy began on Monday when… Cristina Kirchner’s former deputy economy minister, Emmanuel Álvarez Agís, proposed the creation of a “cash tax.” To encourage consumers to pay via bank transfer, virtual wallet or QR. This measure, according to The Economist, would encourage companies to formalize them coffin He explained that “Not everyone is a criminal in the informal sector“.
The former official described the scheme as a “carrot and stick.”: “The stick is a cash tax, and the carrot is a single-business tax, that is, a simple, low tax, not equal to the level of taxation imposed on a large business, in a way that can be cheaply and conveniently formalized.”
Following the President’s initiative Javier Miley described him as a “thief” On his account on the social network They never think about cutting spending, they only think about how to raise more That we are the ones who decide how much money you have and what you will spend it on.
What do we talk about when we talk about tax reform?
Hours later, the president returned to the fray and posted: “Here I leave you an article by Fernando Álvarez showing that the proposal of Álvarez el Choro, formerly known as Álvarez el Gil, is complete nonsense. What’s the difference between the offer and having a stream waiting for you at the ATM exit and stealing 10%? “This is Kirchnerism: the thief who uses the law to legitimize the theft of politicians.”
After receiving several questions, Cristina Perez interviewed Álvarez Agís at LN+where He described his initiative as “very simple” and separated it into three phases.
“Argentina has a big problem with the informal sector. Those of us who work in the informal sector pay taxes that those of us who work in the informal sector do not. Not everyone is a criminal in the informal sector.. The economist explained that there are companies that, due to high taxes, would collapse if they became official.
Keys to tax reform: “We must simplify the system and eliminate distortive taxes”
In this context, he specified that the first point in his proposal is:Eliminate the check tax“, which is a tax, according to him, that punishes those who work within the banking system. Álvarez Aguis admitted that this measure would cause an increase in the financial deficit.
To balance this situation, he introduced the second element of his plan: The controversial “cash tax”..
“There are counties that owe taxpayers half the year in taxes,” one tax attorney said.
He explained this in the following way: “When you impose a tax on cash, what happens to the consumer? They say: OK, I will pay by electronic means or virtual wallet” and This forces the kiosk to formalize itself, and not collect fees in cash. If you want to formalize the kiosk with the existing tax structure, you will integrate it.
Finally, he referred to the third axis of his initiative: “Reducing taxes on small and medium enterprises” to facilitate their transition into the formal system without the risk of bankruptcy.
Emmanuel Álvarez Agís responded to Javier Maile
During the interview, Álvarez Agís also responded to criticism from President Javier Miley, who has repeatedly stated that “taxes are theft.” “It is an idea that only one president on earth supports, and that is our president.“, said the former official.
He explained that as well His proposal does not aim to increase tax pressures, but rather to redistribute them. “What I do is if Argentina charges $30 for every $100, I say reduce it by $5 for those who have official status, and collect $5 for those who have unofficial status,” he explained.
He added: “Do you want to avoid that tax? As a consumer, you are moving away from cash and paying electronically, and as a business, you will be laundered.” With a lighter tax structure“.
The private sector has adjusted the price of one dollar to $1,500, although it requires more competitiveness
After the interview, the president attacked him again. “After Alvarez El Chorro wanted to steal you from the cashier’s mouth, I didn’t think he would be able to get over it… I was wrong. Not only does he unsettle the argument by falling into the fallacy of popular advertising, but he also denies the confiscatory nature of inflation.“.
“Zero monetary theory. Ciao!“, concluded Javier Miley on his account on X, accompanying the video of the report on LN+.
ng/ff
About The Author
