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Montevideo, November 15th 2018 - 06:17 UTC

Macri finds no other way but to further burden Argentine taxpayers to balance budget

Friday, November 2nd 2018 - 12:15 UTC
Full article 8 comments
Bad as it may be, Macri signed a decree whereby more [wealthy] people will pay income tax. Bad as it may be, Macri signed a decree whereby more [wealthy] people will pay income tax.

Just one day after admitting his administration charged “the highest taxes in the world,” Argentine President Mauricio Macri Thursday explained a new tax increase was necessary to balance the 2019 budget and “build solid foundations” that will allow the country to grow for several years.

“Unfortunately, a part of achieving zero deficit next year is the increase of taxes and another part is the reduction of the expense,” Macri told reporters at a press conference in Cordoba.

He also recognised “this level of taxes is harmful for the country” because foreign entrepreneurs compare Argentina with Chile, Uruguay or Colombia and invest “where it is most convenient, where there are less taxes.”

Nevertheless, he signed a decree whereby the sale of property purchased after January 1, 2018 and severance money for people with the highest earnings will fall under the scope of the income tax.

“We need governors to enforce budgets with zero deficit,” stressed Macri. He added that “seventy years of breaking the budget led us to this situation of poverty, which did not exist before, we have been retreating for decades and we have a heavy debt to the development of the country.”

The President described that in order to settle this debt “the starting point is a balanced budget, an Argentina that is managed with transparency and without corruption and an Argentina connected to the world and that is integrated in an intelligent way” and that “by 2030 we will be able to triple our exports and quadruple the amount of companies that export.”

Macri denied that there were massive layoffs due to the recession in Argentina and was confident that in the next few years there will be a fiscal surplus.

He also said he favoured a reciprocity policy on immigration and make a distinction between “those people [who] come with a vocation to work and protect ourselves from those who come with other intentions.”

Categories: Economy, Politics, Argentina.

Top Comments

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  • chronic

    Yeahhhhh - wrong. The biggest impediments to foreign investment are:

    Political instability - marginal electoral majorities and fractional coalitions.

    Nonexistent rule of law - a lack of impartial courts and fully functional administrative bureaucracies.

    Moral turpitude - che is corrupt and even if you buy him off - he won't stay bought (no honor).

    Hard to do business with rg.

    Nov 02nd, 2018 - 02:33 pm +1
  • chronic

    Close! Only a 1,000 miles off.

    Nov 05th, 2018 - 06:43 pm +1
  • chronic

    Apparently Reeeeeeeeeeeeeeeeeeeeeeekie is only a long distance spectator.

    Nov 03rd, 2018 - 05:33 pm 0
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