The summer holidays will be very short for the government Javier Mileiwhich wants to use the parliamentary break in January to advance negotiations on the issue Labor reform that the governing party wants to agree to it senate in February, what you need it for Support for “dialogue” governorswho have already begun to express doubts about it Tax chapter of the project.
After the approval of the 2026 budget, the leader of the senatorial bloc La Libertad Avanza (LLA) stated, Patricia Bullrichdoes not want to lose the initiative and plans to rally the troops via Zoom from January 16 to “analyze in detail the proposals that bring the different sectors together,” parliamentary sources confirmed iProfessional.
At the same time, the Minister of the Interior, Diego Santilli, will resume meetings with governors after they managed to reach positions in several of them – especially in the distribution of ATN to their provinces – for the approval of the first part of the legislative package that Milei had drawn up for the extraordinary sessions of the Congress.
Santilli and Bullrich’s January agenda points in the same direction: Decide whether or not to accept the changes to the project This has been raised by various sectors, including some governors, who have already initially resisted the articles Income tax and “reduction of the tax burden” because of the impact they could have on the coffers of their provinces. This decision will determine how much consensus they need to move forward in early February.
Labor reform: Javier Milei’s bishops will collect votes in the summer
An internal discussion begins in the government about the possibility of accepting changes in labor reform. In the executive branch, it almost never goes down well when people want to change Milei’s projects, but in the Senate they believe this might be the best way to build a consensus that will allow them to secure a solid majority.
Bullrich indicates that, in addition to the governors, there are several sectors that have made comments on the project during the consideration of the project in the Working Commission, where it has already received an opinion. “We would like to have the instrument signed, what does not prevent the opinion from being changed later,” he said at the end of the last meeting of this body.
Official sources in the Senate confirmed iProfessional The The idea of starting the meeting of the bloc in mid-January is due precisely to the analysis of the proposals received. They make it clear that there will be no significant changes to the spirit of the project, but that they will consider corrections in the wording or insertions based on the numerous proposals received in the Senate.
In fact, during the short debate in the Commission, which included, among others, the CGT, the UIA, trade unions, employers’ chambers, representatives of SMEs and delivery platforms, the majority of guests proposed changes to the initiative, if not outright rejection, reinforcing the doubts expressed by the Commission Governors and allied blocs.
This other sector will be taken care of Santilli, who will stay in Buenos Aires in January to meet with governors, sometimes in Casa Rosada and others in the provinces, to finalize agreements and collect votes so that the labor reform is passed in February, confirm those around him. Bullrich’s original plan is to vote on the project on the 11th or 12th of this month.when this consensus is reached.
The tax chapter of labor reform in the sights of the governors
The first signs of resistance to the tax chapter of the labor reform, expected by iProfesional, appeared federal sentencing block, This is part of the Peronist bench, but differs from Kirchnerism to such an extent that three of its five senators voted for the 2026 budget.
Carolina Moisesa reference for this bloc, warned two weeks ago that the national constitution requires this “Contribution laws” are always first dealt with in the Chamber of Deputies and he emphasized that “the Senate cannot open the proceedings if the executive branch includes tax matters in labor reform.”
The proposal was overlooked, particularly because LLA supports the argument that the project does not create new taxes but rather changes them, a logic that the Senate has accepted in other previous debates. But in this block they carve Governors like Raúl Jalil (Catamarca) and Osvaldo Jaldo (Tucumán) and as a parliamentary source told this medium, there have been such in recent days New evidence of this part of the project has emerged “especially from the north”.
This is no small matter for the ruling party, as that is where the provincial leaders who have provided the most support reside. In addition to Jalil and Jaldo, Gustavo Sáenz from Salta and the missionary Hugo Passalaqcua are important allies for Milei in Congress. Along with other leaders who are also moving votes for the government, they leaked their votes this week Concern about the articles relating to co-participation taxes, the same ones to which Federal Conviction had objected.
It is the case Revenue, which in the project includes discounts for real estate rentals and also for companies. This honor is one of the honors that carry the greatest weight for cooperation between the nation and the provinces. The sources interviewed in the Senate believe that the governors will demand “either changes (in the project) or compensation” for the eventual decline. in the provincial collection.
What is in the tax chapter of the project?
Strictly speaking, the fiscal part of the labor reform project is contained in Titles XXIV and XXV. Then they appear Items like 185which creates a VAT exemption for the provision of electrical energy which is used in irrigation systems intended for Agricultural industryalthough there are others who propose more profound changes.
One of them is in there Article 186which relates to the update of the losses in the Income tax for legal entities and specifies this the brokenness generated in fiscal years beginning on or after January 1, 2025 (inclusive). is updated by the Consumer Price Index (CPI), which implies an inflation adjustment mechanism.
Furthermore, Article 188 The tax exemptions also include “profits from the rental of residential real estate” effective for financial years beginning on or after January 1, 2026.
Meanwhile, article 190 of the project lowers profit rates for “corporations” In the highest rates: Those paying 30% would drop to 27% and those paying 35% would rise to 31.5%.
On the other hand, Title XXV specifies a “Reducing the tax burden” by abolishing “as of the first day of the month immediately following the month in which this Law comes into force” internal taxes on the items “insurance, mobile and satellite telephone services, luxury goods and automobiles and motor vehicles, recreational or recreational boats and aircraft”.
These tax changes are in the crosshairs of several Governorseven those who have the best dialogue with the Casa Rosada. That’s why the government of Javier Milei wants to use the momentum given him by his recent victory in Congress to forge these relationships and organize the roadmap for the United States senate in January, with the aim of Labor reform to be brought into the premises in the first days of February and to bring it into force before March.
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