MercoPress. South Atlantic News Agency
Capitanich announces 50% tax on luxury goods and different rates for utility services
Argentine Cabinet Chief Jorge Capitanich announced on Friday the government sent a bill to Congress raising taxes on luxury goods such as premium model cars, recreation boats, motorbikes and aircraft, and underlined that ”those who want to buy luxury goods will have to pay more,” he warned. Read full article
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Disclaimer & comment rulesThey really DON'T have a clue, do they?
Nov 23rd, 2013 - 10:53 am - Link - Report abuse 0Another garbled description of the fabled model in practice.
More subsidies for the “poor” who TMBOA has made poorer and poorer with her actions in recent years and the rich to be taxed harder.
The old Labour Party tried that in the good old days of the Unions telling them what to do with the country and calling for strikes without a vote being taken, etc. 95% top rate of tax and all it did was to drive the people with money out of the country.
Stupid is as stupid does.
@ChrisR
Nov 23rd, 2013 - 11:10 am - Link - Report abuse 0I do have to agree with you this is a stupid measure that will not benefit low income people and will make upper middle class to move even to the right as they have been before.
Did you wanted Cpitanich pro market economist?
You got it don't complain now idiots.
Moreno come back we miss you.
Time to buy a Chery made in China
Ha ha
Looks like an excellent recipe for increased corruption in the political classes and others to me.
Nov 23rd, 2013 - 02:14 pm - Link - Report abuse 0@ 2 DanyBerger
Nov 23rd, 2013 - 02:22 pm - Link - Report abuse 0I think you should buy a Chery, in fact I would advise you to buy two. The Chery I had on rent with 20 Km on it had the wheelnuts on all four wheels LOOSE.
The jack was very difficult to use and not very safe and the engine couldn't pull TMBOA off Federer. Something fell off it as well and we had to put it in the boot but I can't remember what is was.
AND, there are no spares available in Uruguay and I suspect it's the same in The Dark Country.
Absolute crap, so it should suit you down to the ground, because you will be back walking within 5 days.
The “reality” is in the “small print”. Never mind the “headline” goods with which all can agree. “Luxury” goods also include electricity, gas, bicycles, clothing, shoes, food, water, air. Not that DB cares. She's away sponging off some other country's welfare system. Important thing is to locate it. Dual nationality. Either Italian or Spanish as well as Craptina. Probably female. And crooked. I wonder? Might be a Roma!
Nov 23rd, 2013 - 03:45 pm - Link - Report abuse 050%? It should be 300% for all FOREIGN luxury goods, automatically. Not a cent of Argentina's money should land in the coffer of Euros and North Ams.
Nov 23rd, 2013 - 09:02 pm - Link - Report abuse 0Considering most Argentineans living in the copious amounts of slums can't afford computers, shouldn't computers be subject to this tax?
Nov 23rd, 2013 - 10:28 pm - Link - Report abuse 0That would mean less computers. And eventually less Argentineans on the internet and in fora such as these.
Yeah I think I support the tax. Perhaps higher even.
And I gee I hope Dany buys a Chery. After achieving the lowest safety rating in Australia, recalls on defects, poor sales and now a ban on certain models; I am sure there will be plenty of cheap options for him to buy.
@6 Oh dear snotty, you have got your knickers in a twist. Never mind Mama will put you to bed and husha bye baby to sleep
Nov 23rd, 2013 - 10:49 pm - Link - Report abuse 0I thought you had resolved not to intervene on this site any further. Well that promise lasted about two days until it was broken
Seems a trait of your countrymen and you in particular
Super high taxes on categories is the same as different exchange rates. Bye bye “luxury” car dealerships, the parts and all the employees they have working for them.
Nov 23rd, 2013 - 11:39 pm - Link - Report abuse 0I love watching this fly apart!
These idiots just don't get that the only thing they are achieving is taking currency out of the economy and reducing trade. These freaks are desperate for dollars. Those that can buy these cars will just put their money elsewhere and it will not be in pesos.
Nov 24th, 2013 - 12:13 am - Link - Report abuse 0Anyone else notice the mad cunt of argentina is not in total black? Only black tops and dresses with color. You can put dog shit in a bag....a box...in a hole in the ground.......but it will always be dog shit....in this case Asslips Kirchner.
I wonder how much faster the economy will slip now that kicilloff with in charge?
So people with high incomes will pretend they have low incomes. Wow, never seen that before.
Nov 24th, 2013 - 02:44 am - Link - Report abuse 0I love this. I really, really love this. A government that thinks it can control what people like and what they buy. This is my absolute favourite thing since the ussr made a lot of shoes that nobody bought whilst the queues for bread and milk went round the block.
Keep it coming Cfk, this is comedy gold. Please also put Timerman on for a cameo role.
@8
Nov 24th, 2013 - 04:13 am - Link - Report abuse 0I don't know what is your problem with me, and I don't care. These superfluous Euro and North Am luxury products are nothing but fraudulently overpriced toys for adults. Those products should be banned not for being luxury, but for being consumer gouging.
And as far as I understand it Jade and Obsidian are NOT on the list, so I have no worries.
Will this hit British exporters? Reduced sales of Discovery and Sunseeker yachts and Fairline boats . No more Range Rovers, Aston Martins and Mclaren cars on the streets of Recoleta. No more Smythson stationery, Loake shoes, Oswald Boetang suits, Rigby & Peller underwear, Aquascutum raincoats, James Purdey & Sons shotguns and hunting rifles or Bremont wrist watches. Sad Story. I sure these fine British manufacturers will survive the loss of their Argentine markets.
Nov 24th, 2013 - 07:47 am - Link - Report abuse 0It's good from time to time to indulge in lifes luxuries, like Jazz at Ronnie Scotts, Mozart at the Royal Opera House or Champagne at the Ritz, some of the finer things in life.
The TruthPatroll may smugly and puritanically reject these things but I rather think he's on his own on this one.
Good article in the Guardian http://www.theguardian.com/business/economics-blog/2013/nov/22/chile-prosper-argentina-flounders
Nov 24th, 2013 - 10:09 am - Link - Report abuse 0Says it all really
@4
Nov 24th, 2013 - 11:34 am - Link - Report abuse 0Must have been unlucky with that car. Chinese vehicles perform well in crash and safety tests.
http://youtu.be/ha-fXrvOv94
12. Importing anything and using U$ to get Pesos is a stupid business plan. You'd think you could come up with an imaginary business plan that makes money!
Nov 24th, 2013 - 11:47 am - Link - Report abuse 0@15
Nov 24th, 2013 - 11:52 am - Link - Report abuse 0Brilliant. Is that all that they are good for?
14 Steveu
Nov 24th, 2013 - 12:31 pm - Link - Report abuse 0Yes, a most illuminating article. Many economists also have identified corruption as a major impediment to economic growth and efficiency. On the 2012 global transparency index Chile comes in at a credible 22 on the list, just above France and the US and just below Ireland and the Bahamas. Argentina is listed an alarming 100 place, which is even below Albania.
It’s difficult to see how these taxes will increase the wealth and prosperity of Argentina. Subsidies, as most economist will tell you merely drains wealth from more productive sectors of an economy.
I can’t think of any country that has succeeded in increasing the prosperity and social and cultural development of its people by penalising business and demonising the wealthy.
I don't know why British press are always reporting problems (according with them) from other nations when they are close to collapse, the level of poverty the have is like Africa and a unresolved debt problem that will scare Jack the Riper.
Nov 24th, 2013 - 01:05 pm - Link - Report abuse 0Envy perhaps?
Argentina and Chile economy are not comparable to start with.
What may be seems to be for Chile is not good for Argentina and vise versa.
The road to full industrialisation is a painful one and demand years of sustained policies to archive it.
All countries when building or rebuilding industrial sector have suffer of inflation, exchange rate controls, etc, etc.
Was the case for China, Brazil, USA, Germany, Italy, etc.
Why Argentina is going to be an exception?
Dany, You must be th eonly perons in teh countyr that truly believes your industrial base is growing.
Nov 24th, 2013 - 01:53 pm - Link - Report abuse 0Its not, there are factories, wineries, hotels, restaurants, stores, mining etc etc etc closing all over the place!
If not for the massive hiring of the gov't you'd have HUGE unemployment.
Even Apache is pulling out! There goes more U$ investment but more importantly the technology and knowledge of fracking.
It is a disaster.
Bottom line, sure inflation is a significant problem and one does not want to be in the extreme of inflationary nations. But I also don't want Argentina to become like Europe and the North America, “instant gratification” societies in which the only happiness people can aspire to is by the purchasing of material items, the rest of their lives being so empty and miserable due to 80 hour work weeks, disfunctional families that are completely isolated, or outright being alone from not having the chance and time to find a partner in life.
Nov 24th, 2013 - 02:20 pm - Link - Report abuse 0That's why the Euros and North Ams love “luxuries”(and of course DRUGS), to fill a huge spiritual and social void, that their broken cultures and societies have for half a century failed to cover. And the result is all Euros and North Ams are BROKE, or up to their eyeballs in personal debt, and in turn their nations are broke, and if not already soon.
Of course all the euros and north ams here will now tell me they live in 10 bedroom estates, have a 2nd property by the waterfront, travel every weekend on intercontinental shopping trips, make six digit incomes in their currency, and blah blah blah. Of course all lies. The internet is now also used by the Euros and North Ams to fill that empty abyss (by pretending wealth or good looks).
Argentina wants none of those broken, failed societies. What we need is a FRUGAL society like the asians. Work and buy NOTHING. Save all the time all your life. That is what I do. No luxuries, just what is needed to optimize production.
So neither the inflationary model nor the consumerist model. The frugal Asian model, that is the path to the future.
Frugal Asians also work. Rgs don't work, they are lazy and expect the gov't to give them everything.
Nov 24th, 2013 - 02:27 pm - Link - Report abuse 0So that won't work either
Corruption, laziness and stupidity are making you into Bolivia. It's taken 75 yrs to go from 1st World to 3rd World I would guess another 25-50 yrs and the destruction will be complete.
Do not worry about my work ethic.
Nov 24th, 2013 - 02:49 pm - Link - Report abuse 0It's your country's PROVEN work ethic. Argentina is one of the most unproductive country's in the WORLD along with being ONE OF THE MOST CORRUPT IN THE WORLD.
Nov 24th, 2013 - 02:52 pm - Link - Report abuse 0You'll never change it.
It is destroying you.
It's too bad you have put so much thought on what is supposedly destroying us, but not on what is destroying YOU.
Nov 24th, 2013 - 03:07 pm - Link - Report abuse 0Toby, Since you don't travel and only read liberal news sites you no very little of what is happening on the ground in the USA.
Nov 24th, 2013 - 03:44 pm - Link - Report abuse 0Most everyone I know has had the best financial/working years of their lives the last 2 years. Me included. It is rocking here and it should start showing up in stats fairly quickly.
We have a HORRIBLE HORRIBLE Weak and Stupid President. Once the Repubs take back the Senate in 2014 and we change the dullard our for a new guy you'll see the USA rocking again.
Remember we are undergoing dramatic changes in our energy fields no one really knows how this will change the world but it will only make the USA stronger and richer. We are only 5 yrs away from becoming energy independent. Think about it, it is a huge huge difference than the last 40-50yrs. Ask your parents/grandparents what the USA was like when we had our own oil.
It will be amazing.
@ yankeeboy
Nov 24th, 2013 - 04:22 pm - Link - Report abuse 0Ehh! Nope this is your fantasy buy not.
Sorry I’ll see you in your next USAMEX close to default comedy coming soon.
@ The Truth PaTroll
Unfortunately too late Argentinean already are a consumerist society like the Yanks.
That is the reason of inflation, too much demand due to people have not the discipline to control the impulse of buying like theYanks.
To control inflation is quite easy stop buying and you will see how prices drop.
I see Argentines that after they got out of the crisis started to spend like crazy even what cannot pay for it. Expensive vacations abroad, luxuries cars, food like if would be the last day in life, etc.
Do you remember tomatoes before elections to $60 pesos per kilo?
Well none consolidate that price because simple was hilarious and now?
Tomatoes when down even with offers of 2 kg for 9 pesos.
If manufacture or the producer rise the price and you pay that price your consolidating this prices as new base.
So if you pay for it $60 when before was $10 why you will not pay $70?
The producer will rise price until you stop buying.
Can you see without buying there is not inflation and can be deflation.
SYL
The Truth PaTroll
Nov 24th, 2013 - 04:51 pm - Link - Report abuse 0You don't half talk a lot of rot. I won't bother to debate with you because I don't believe that you believe all the rubbish you post yourself. You can't, no one can be that stupid and bigoted.
I guess all the Argentinians living in Buenos Aires' famous villas miserias are already enjoying a state of Asian frugality.
LUXURY CARS are a hedge against inflation for the middle class and even upper classes.
Nov 24th, 2013 - 05:48 pm - Link - Report abuse 0Luxury cars will safeguard more wealth and can enter the country with a favourable $$$ exchange, at least until now.
CFK's government cashes in, and at the same time, closes one more loophole that allowed the people to safeguard their earnings.
http://mobile.bloomberg.com/news/2013-05-14/bmws-gaining-bitcoin-like-appeal-as-cpi-hedge-argentina-credit.html
“Luxury tax” - that tax label is an easy sell. It's hard for one to feel sorry for your middle class neighbour who may have been a little bit better off than you, isn't it.
The politics of greed and envy = more taxes = less 'real wealth' for the people, more money out of circulation, less consumer spending, fewer earnings for the working class.
Might well be less inflation, followed by a Depression, of course.
Job done.
Dany, How does one default when all debt is denominated in its own currency?
Nov 24th, 2013 - 06:13 pm - Link - Report abuse 0Love to hear the how you explain it.
Dany says;
Nov 24th, 2013 - 08:53 pm - Link - Report abuse 0“To control inflation is quite easy stop buying and you will see how prices drop.”
LOL.
If only people would just stop EATING then Argentina could solve its inflation problems….. also solve its poverty problem, unemployment problem….. pretty much every problem if everyone would just hurry up and starve to death.
Dany's final solution for inflation.
31 Anglotino
Nov 24th, 2013 - 10:47 pm - Link - Report abuse 0“Final Solution”, why does that sound familiar...?
Why don't Rgs understand if you have 40% more currency in circulation,you 'll have about 40% more inflation?
Nov 24th, 2013 - 11:50 pm - Link - Report abuse 0They're the only people that doesn't seem to get it.
Well maybe Venezuelans and Zimbabweans don't either.
@26
Nov 25th, 2013 - 03:27 am - Link - Report abuse 0Slight problem to your plans of USA returning to glory:
1. In the ephemeral time you have some oil bounty, your society will be stupid enough as usual to start buying horribly inneficient driving vehicles again. This will increase your demand, eating away at the surplus.
But that's really nothing. By far the two things that will nullify the new oil are:
2. The fields of Texas are now beginning their decline. In 10 years they will be in steep decline, and probably gone in 20-25 year. That basically will negate great part of the new oil.
3. You will face a massive environmental food crisis as many of these oil fields in the USA, unlike in Argentina where they are in otherwise useless desert, lie in some of the most important farmland of your country. Already oil and chemicals are seeping into these soils, but most importantly, into the ACQUIFERS that are in fact the water used in the Central USA to water the crops. Once those are contaminated it will be virtually impossible to clean them, since they are underground. No one will buy your crops, not even Americans, and your food prices will skyrocket.
Then the Texas fields dissapear, and injunctions are placed against further drilling in the shale oil regions to stop the pollution, and you face “peak oil” around 2025-2030, and your economy collapses.
34 Snotty Nostril
Nov 25th, 2013 - 04:51 am - Link - Report abuse 0This article must be upsetting to you, I'm sure. It's all about your economy nosediving and spiralling in, but your government is still taking an opportunity to prevent the middle class from protecting their wealth.
You must feel impotent to do anything about this, just as you are impotent in other facets of your life.
Is that why you fixate on other people's problems, there's f-all you can do about your own depressing situation??
What an ass you are.
:-D
Not to worry...Kissherassoff will save the country.
Nov 25th, 2013 - 10:04 am - Link - Report abuse 0Tobi the titti boi.....stick to the comforts of suckling your mommas mammaries and hob knobbing dad to comfort zone. All three statements you make are conjecture.......stick to what you know based on your worldly travel experiences......nothing.
Nov 25th, 2013 - 10:19 am - Link - Report abuse 0Start posting some facts.
Poor Nostrils
Nov 25th, 2013 - 11:40 am - Link - Report abuse 0So young.
Water can be filtered if that were to be the case. Secondly technology can always evolve in unexpected directions.
30 years ago the mobile phone didn't exist as we know it - they are expensive and rare
20 years ago the internet didn't exist as we know it - it was limited and unknown
10 years ago electric cars didn't exist as we know it - they were expensive and inefficient
Who knows what will happen in the next 10 or 20 years.
Unlike Argentina, the trick is to reform and adapt. For all the mistakes the US makes, it has an amazing ability to invent and innovate.
Looks like the horse bolted over a year ago .....
Nov 25th, 2013 - 11:54 am - Link - Report abuse 0http://www.businessinsider.com/luxury-brands-are-fleeing-argentina-2012-10
The tax take isn't going to be that big after all .
Toby, Don't worry about the USA, you have plenty to worry about in your own country.
Nov 25th, 2013 - 12:56 pm - Link - Report abuse 0BTW I just picked up my new car, exact same model as my last car but 3 yrs newer. A drive I often make used to take over a tank of gas now it takes 3/4 of a tank! Huge huge difference in a very little amount of time.
So don't worry about us. Our work ethic, innovation, intelligence and free market will get us out of whatever the next calamity may be.
Too bad the same can't be said for Argentina
No doubt the political elite will be cocooned from this as the taxpayers will be buying and paying for their luxury cars and private aircraft. Channels will stay open for bringing in tax free goods for the Presidents friends.
Nov 26th, 2013 - 12:06 am - Link - Report abuse 0@35
Nov 26th, 2013 - 01:48 am - Link - Report abuse 0So I'm an ass because I focus on the problems of the Euros, North Ams, and other Latin Americans to deflect from my nation's “failures”.
So what does that make you and the rest of your ilk?
All I hear from you is how great and amazing your nations are, no poverty, people raking in bills, no unhappiness, just joy and peace and honey.
AND WITH ALL THAT GOING FOR YOU, YOU ALL COME HERE TO FIXATE ON OUR PROBLEMS? With all that is supposedly going your way?
One can only thus conclude: you must be miserable misanthropes.
@ DanyBerger @ChrisR
Nov 26th, 2013 - 03:46 am - Link - Report abuse 0I think Chery will be a good choice, a most cost-effective option for the low-income class. I am a home appliance exporter from China. Frankly speaking, we feel sick of the import restrictions carried out by the government. How many benefits you guys got from this regulations, will job opportunities increase?, will high inflation come down. In fact many small companies are coming to an end thanks for these regulations. Agree with the Venezuelan saying: Argentina will be a normal country when Cristina is out of stage. NO OFFENCE
#42 tito....you say:
Nov 26th, 2013 - 10:09 am - Link - Report abuse 0“All I hear from you is how great and amazing your nations are, no poverty, people raking in bills, no unhappiness, just joy and peace and honey. ”
I say:
Show us where we post saying our nations are amazing, have no poverty, no unhappiness just peace and honey?
Do not confuse people making posts stating how bad Argentina is compared to other nations with them calling their or nations utopia. However, quite often in comparison, it is easy to feel like utopia compared to Argentina. I also say and many would agree, assuming you actually live in Mendoza....or Argentina for that matter, if you seen the world, you would know just how bad Argentina truly is.
@42 : Argentina used to be amazing till Peron ruined it .
Nov 26th, 2013 - 12:30 pm - Link - Report abuse 0The final nail in Argentina's coffin was his desperate desire for one last go on the handles of power , so he initiated a civil war in the late 60's to destabilise what till then had been a happy and prosperous country .
Steeply downhill ever since , not helped by the fact that the military let too many erpistas and montos escape abroad , while they were busy making themselves rich by kidnapping and killing the camp followers and the innocent .
Now the marxists left free run the place .
If this current regime stays in power , you'll be relying on UN food parcels soon .
Marxists always manage to starve their people to death .
Russia 1920's /N Korea now /China 1950's/ Chile 1970-73 /Cuba 1960's
@EVOKILLER
Nov 26th, 2013 - 10:42 pm - Link - Report abuse 0Don’t be so happy because my measure only will apply for cars and motorbikes.
Then if you want to sell electrical appliance in Argentina you will have to set up a factory and produce locally.
Ha ha
@Captain Poppy
That is not true
@Usurping Pirate
That is not true just pure BS Peron didn’t ruined Argentina on the contrary that is a fairy tale for idiots.
DB : Wrong again , Peronism is a fairy tale for idiots.
Nov 27th, 2013 - 11:50 am - Link - Report abuse 0You never learn do you ?
Peron wasted the country's wealth on useless nationalizations , un affordable social programmes , ridculous wage hikes and neglecting agriculture , in exile he caused the Dirty War by pitting left against right from 1968-73 and then appointing that dumb bimbo Isabel as his successor , who in turn let Lopez Rega loose on the country , and you lot STILL idolize him , then blame everyone else for your problems .
A 50% tax on cars will be found to be illegal by WTO and probably the Rg Supreme court.
Nov 27th, 2013 - 11:57 am - Link - Report abuse 0More cases against Arg and probably more retaliation coming soon,
Do these idiots ever learn?
@46 DanyBerger (#)
Nov 27th, 2013 - 03:18 pm - Link - Report abuse 0Dany, set up a factory in Tierra del Fuego will be an option in the following years, but for the time being we cooperate with top-three home appliance manufacturers ,not with retailers or chain store. check If your home appliance(Airconditioner, Microwave....) are coming with Noblex, Sanyo, BGH, HItachi, Kelvinator brand, we are the origin supplier..........
@ 49 EVOKILLER
Nov 27th, 2013 - 06:12 pm - Link - Report abuse 0This version of DanyBerger (the stupid one) does not HAVE any home appliances, he lives in a cardboard box in a slum.
He is a paid La-Camping-It-Up troll and the pay is not that good.
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