In conversation with Channel E, Marcelo RodriguezThe tax expert explained what are the main projects that the government will promote as of December and what financial dilemmas it faces in its reform plan.
Simultaneous reforms and a decisive Congress
Rodriguez He stressed that the government plans to promote, as of December 11, a group of projects that will determine the new economic direction. As detailed, the first package will include the 2026 budget, labor market reform and specific aspects of tax reform. A review of the income tax will be included to mitigate its impact on employees, while allowing new deductions linked to consumption.
Rodriguez He explained that the historic savings compensation system will also enter the parliamentary discussion, an initiative that seeks to integrate the dollars saved by Argentines into the productive system. The tax expert stressed that this measure is essential to boost the economy, although he admitted that the central question still remains: “How will this administration cut taxes in light of the very strong demand from conservatives who need the resources?“.
The specialist confirmed that collections decreased significantly during the month of November, as a result of the decline in activity, the decline in exports, and the impact of taxes such as the PAIS tax. As he said “There has been a very marked decline in the true values of collection“, which puts the government’s financial goals under tension.
What direction should tax reform take?
When asked how far the government could cut taxes without compromising public accounts, Rodriguez used a metaphor to explain the situation: “If I told you I had to take a trip, you would ask me where I was going; The same thing happens with tax reform: first you have to determine the destination“.
He noted that the reform promoted by Mauricio Macri’s government in 2017 had a clear goal: to reduce the tax burden on companies and increase pressure on individuals, in addition to easing taxes at the provincial and municipal levels. On the other hand, subsequent administrations increased state pressure because they realized that the state was the engine of the economy.
The tax expert noted that today there are still opposition proposals to create new taxes, ranging from taxes on bank withdrawals to severe environmental taxes. At the same time, he celebrated the official intention to simplify procedures and reduce bureaucratic demands that discourage voluntary compliance. He pointed out that one of the projects under analysis indicates that “It will no longer be necessary to justify the depreciated amount or closing capital when filing the earnings declaration.Which may encourage consumption and mobilize currently stalled funds.
Rodriguez He stressed that the Argentines have purchased more than $35 billion since the stockpiles were created, resources that could have a powerful reactivation effect if they enter the official circuit. In this context, he appreciated the efforts made to reduce the demand for those wishing to save in dollars: “If this is introduced into the production system, it can be reactivated“.