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Montevideo, November 15th 2018 - 06:16 UTC

Argentine President admits he charges “the highest taxes in the world”

Thursday, November 1st 2018 - 11:18 UTC
Full article 7 comments
Macri held a Cabinet meeting in Trenque Launquen with Governor Vidal as a guest. Macri held a Cabinet meeting in Trenque Launquen with Governor Vidal as a guest.

Argentine President Mauricio Macri Wednesday admitted during a radio interview in the small town of Trenque Lauquen in the province of Buenos Aires that his administration charged the highest taxes in the world and that “we have to lower them.”

 For that, Macri blamed the Kirchners' administration, which in his words “forced” the Cambiemos government to raise taxes. The president also stood behind the recent agreement with the International Monetary Fund (IMF).

“To those who do not understand it, I tell them that we inherited a government with a very big hole, we have the highest taxes in the world, we have to lower taxes”, said Macri.

“In 2017, the world gave more than 100,000 million dollars to emerging markets,” Macri explained. “This year, only 7,000 million; Argentina was left with no credit,” he added.

He also justified successive increases in rates of electricity (over 100 percent in twelve months) and cooking gas (over 30 percent in October alone).

Earlier in October, the Macri administration had to go back on its steps regarding a ministerial resolution whereby cooking gas suppliers were allowed to charge extra in orden to compensate for the devaluation of the peso. That move and many others in the same direction are denting Macri's image to seek reelection.

In his radio interview, Macri once again drew the spotlight onto dubious deals from the previous government as he stressed that “we have to eradicate corruption, which is the main cause of poverty.”

Macri held a cabinet meeting in Trenque Lauquen, where he was joined by Buenos Aires Governor María Eugenia Vidal (from his own PRO party) in what was perceived as an attempt to portray an image of cohesion within his Cambiemos coalition, which is losing ground among voters for trying to please people from other political views at the expense of the more conservative citizens that led him to the Casa Rosada in 2015.



Categories: Economy, Politics, Argentina.

Top Comments

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  • chronic

    Yep. Reeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeekie is more than a little challenged in the economic acumen department.


    Nov 01st, 2018 - 10:58 pm +2
  • Zaphod Beeblebrox


    Are you saying that Macri is wrong to want to reduce taxes?

    “Meanwhile, financial institutions and banks are thriving thanks to financial speculation”

    Would you rather the banks went out of business? That has happened in Argentina before and it didn't end well for many Argentines.

    “...the big export agribusinesses are making a killing thanks to low export taxes and low peso value,”

    ...which helps the balance of trade.

    “and the energy companies are pocketing multi-million profits thanks to constant bill increases allowed by the government.”

    Really? I thought that the energy companies charged what they had to and Macri has reduced the government subsidy. So with people paying the true cost of energy they would want to conserve it and demand would decrease which would reduce energy company profits.

    Nov 01st, 2018 - 06:14 pm +1
  • Zaphod Beeblebrox


    “Way to miss the point. EM isn't saying anything about taxes, he's complaining Macri is using them as an excuse.”

    I was aware of that and might have a point, but he goes on to support his claim with “bad” examples and none of the sort of evidence that you are requesting from me.

    Reekie continually complains that EVERYTHING about the Argentine economy is getting worse and it is all Macri's fault. I have previously provided evidence that this isn't correct. This time I shall merely copy some recent MP headlines that support my claim:

    Strong recovery of Argentine and Brazilian markets on signs of an improved Sino-US trade scenario
    Argentina resumes natural gas export to Chile after twelve years
    YPF plans US$ 4bn annual investment in oil and gas production
    Argentina reports trade surplus in September, the first since December 2016
    Argentina's primary deficit falls to 1.1% of GDP, the lowest since 2012

    Macri isn't perfect, he probably is making excuses, the Argentine economy isn't great and the taxes are too high, but Reekie should accept that some things in Argentina are improving under Macri. I'd expect that the factors that are improving should feed through to improvements in other economic indicators over time.

    Nov 02nd, 2018 - 05:57 pm 0
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