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This is how the board looked for the Profits section in the tax law package.
Fall in collection
In Mendoza, The year-on-year drop in national revenue was one of the largest from all over the country and had to do with the disappearance of Profits last year.
Only in the first trimester was 14.5% less than in the same period of 2023 and specifically in this tax it is estimated that it was 38% less. The ruling party’s figures say that it would be more than 75 billion pesos in the entire cycle or more than six billion monthly. As noted above, it is more of a wage bill.
Now the Chamber of Deputies – where the whole package returns – will decide if you accept having downloaded it or if you insist on its modification, something that Mendoza radicalism has almost defined what it will do. “Now it’s a golden goal”said to ONE Diary a reference for the UCR in that chamber.
What was discussed was to restore the fourth category of that tax; that was eliminated in the middle of the election campaign in September of last year. At that time, the government of Alberto Fernandez proposed exempting about 800 thousand workers having to pay that tax and the idea was approved on September 23. Among others, with the vote of Javier Milei himself, until then still a national deputy. Now it is the libertarian himself who carried his “reverse” to Congress, without success.
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Unionism watched from the boxes when they eliminated the fourth category. Pablo Moyano (left) celebrated by saying “fuck you” to some in the venue.
As it turned out, the national government contemplated the chance of profits falling and suffered with greater surprise the rejection of the changes in Personal property, whom he considered to have more votes. It is almost a fact that The Executive would insist on a second review so that it can promote them again.
Those who rejected were the 33 Kirchnerist senators plus the two from Santa Cruz – already famous for their importance in this debate – José María Carambia and Natalia Gadano.
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The background of a controversial law
Already last December, the local government assured that had stopped receiving 20 billion pesos in the last quarter (at that time it was half the salary bill) due to the changes. His calculations at that time spoke of a loss of 170 billion pesos for all of 2024, but they always provided those numbers with caution, since logically it was not known what the inflationary movement in this first year of Milei in the Government.
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Juri and Suarez voted in favor of the restitution of the tax.
The province It had even reached the Supreme Court of the Nation to recover that income. In November, exactly one month after leaving power, the former governor Rodolfo Suarez presented a precautionary measure to suspend the law (27,725) qthat had been approved by parliament. “It affects the co-participatory mass, unilaterally withdrawing the funds committed by the province for 2023,” his letter said. It was not heard.
Meanwhile, during the negotiations for the Libertarian fiscal package to be approvedit emerged from sources in Mendoza that the IMF itself had requested the restitution of profits to the national administration. The fact that it is a tribute that is practically paid throughout the world, and that it is considered “progressive”, encouraged this supposed request from Washingtontaking into account the fiscal order and the forms for economic recovery that have been suggested since the board.
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Victoria Villarruel broke the 36-36 tie in the overall treatment.
It is estimated that the modifications that had been made, even before the rejection, They already significantly reduced the collection that La Libertad Avanza intended. According to reports from the Congressional Budget Office, the tax would raise 0.4 points of GDP, while in its original form that figure was 0.5. The difference is 547 billion pesos. In other words, half a billion pesos less per year.
The modification that was at stake in the Milei tax package contemplated charging single employees from a floor of 1.8 million of salary pesos. For those married with two children, that bar rose to $2.2 million. Likewise, a higher floor was set for taxpayers from La Pampa, Río Negro, Neuquén, Chubut and Santa Cruz, whose senators They “kicked” so that the non-taxable minimum went up, precisely contemplating average salaries in their jurisdictions.
When the law came out of the Deputies, it was also established that The rates will be automatically updated for inflation every six months and that, exceptionally, in 2024 there would be two indexations by CPI. Until now, none of that will happen.
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