On Thursday, June 27, Chamber of Deputies will debate again Base Law and the Tax Package to approve or reject the changes that both projects underwent in the Senate. This Thursday the Chief of Staff, Guillermo Francosmet with representatives of the dialogue blocs to resume negotiations: the Government made it clear that its priority is to insist on the original wording of the fiscal package, especially the reversal of Profits and the reform of Personal property. Both points were rejected in the Senate.
Unlike the PRO, who immediately after the meeting made it clear that he is willing to insist on the original wording on all points (except those that the Casa Rosada prefers to leave modified), the rest of During these hours, the dialogue blocks analyze what their position will be.
In response to the query of Infobaeboth from the UCRas We make Federal Coalition and Federal Innovationthey considered that some of the changes coming from the Senate are superior. In that sense, they see no need to insist on the original wording of the articles of the Whiteningthe Large Investment Incentive Regime (RIGI) waves delegated powers.
Regarding laundering, the brothers of officials, foreigners and the assets of third parties (front men) were excluded. Meanwhile, the RIGI was limited to nine sectors (forestry-industry, tourism, steel, oil, gas, infrastructure, mining, energy and technology) and it was determined that there must be 20% hiring of local suppliers. On the other hand, the list of organizations that the Executive Branch cannot dissolve within the framework of the administrative emergency was also expanded. All these changes “improve the law”they assured.
However, when negotiations were resumed in the Chamber of Deputies, the dialogue blocks did not find it entirely agreeable that the Government was trying to hide its interest in restoring the fourth category of Profits behind the governors’ cash needs. “They want us to insist but they don’t want to say that it is also more money for them.”, they warned from the radical bench.
This point was even one of the express requests from the IMF. The deputy managing director of the organization, Gita Gopinath, expressed through a statement that it is desirable to improve the quality of the adjustment through the return of Earnings. “Efforts must continue to reform personal income taxrationalize subsidies and tax expenditures and strengthen spending controls,” he said.
During the meeting with Francos from radicalism they also pointed out a contradiction of the Casa Rosada. Upload the Personal Property floor from the current $27 million to $100 has a fiscal cost of 0.44% of GDP. Number almost identical to the cost of the retirement mobility project that Javier Milei announced that he will veto if it is approved in the Senate (0.42% of GDP). “One is for retirees and the other is to give back to millionaires. A little consistency“, they remarked when asked about Infobae.
Last week Deputies gave half sanction to a project which proposes a monthly update of pensions based on the latest data available from the Consumer Price Index (CPI). Additionally, it includes an extra compensation -or “splice”- of 8.1%given that the Government granted 12.5% that does not cover the 20.6% inflation in January (the month that is left out of the update).
In the Casa Rosada they interpreted that in Congress it was specified “an agreement between radicalism and Peronism to break the fiscal surplus”. Along these lines, Milei himself announced that he would veto the project if it passes through the Senate. “I don’t give a damn,” he said bluntly.
When asked by this medium, the dialogue sectors explained that they do not rule out the possibility of include retirement mobility within the negotiation policy on the Base Law and the Fiscal Package. A concrete possibility would be to obtain some type of guarantee that the Executive Branch will not veto the project if it advances in the Senate.
