MercoPress. South Atlantic News Agency

Milei's party gets Bases Law approved

The bill is now ready to be signed into law

Argentina's Lower House passed after 1.30 am Friday by 147 votes to 107 and 2 abstentions the so-called Bases Law bill granting President Javier Milei the tools he claims to need to rescue his country from her plight. The initiative had already been greenlighted but came back from the Senate with a series of modifications that needed further approval. Now the bill is ready to be signed into law by the executive, marking the Libertarian administration's first parliamentarian achievement after over six months.

Vice-President Victoria Villarruel, Presidential Secretary Karina Milei, and Cabinet Chief Guillermo Francos attended Thursday's 13-hour session.

The main points of the new legislation include the reinstatement of the Income Tax for some 800,000 workers with collections ranging from 5% to 35%, in addition to a change to personal assets levies. But to fast-track procedures, the Libertarians dropped their plans to privatize Aerolíneas Argentinas, The Mail Service, and Radio y Televisión Argentina (RTA).

At first, single workers earning over AR$ 1.8 (around US$ 1,285 at the “blue” exchange rate) million or married workers with two children earning AR$ 2.2 million (around US$ 1,570) a month will be reached by the measure. In the future, that threshold will be updated quarterly this year and then every six months based on the Consumer Price Index (CPI).

“The Government achieved a key instrument,” Francos said. “Many thanks to Congress and the governors for having accompanied us in this project, with whom we have dialogued and debated to reach this law so important for all Argentines,” he added on social media. In his view, the measure will allow the Government “to enter a new stage of growth and development for all sectors.”

According to legal analysts, the intended amendments to the Personal Property tax will trigger numerous lawsuits seeking a declaration of unconstitutionality.

At the beginning of Thursday's session, leftwing Congresswomen Vanina Biasi and Mónica Schlotthauer were sworn in as they replaced the resigning Myriam Bregman and Romina del Plá.

Supporting the initiative alongside the Libertarians were the PRO, the bulk of the UCR, most of Hacemos Coalición Federal, Innovación Federal, the Coalición Cívica, and other minority forces, while the Kirchnerite Unión por la Patria, the Frente de Izquierda and Santa Fe's two Socialist deputies voted against.