The earnings reform in which Deputies has the definition. Increase in tax pressure and redistribution both between people and between provinces. Who wins and who loses? #1
As a net result, the change in profits in Deputies implies a greater effective tax pressure for the economy, estimated at 0.5% of annual GDP. In current currency, the annualized increase is of the order of $3,100,000 million.
Since the income tax is a co-participating tax, approximately 60% of what is collected goes to the provinces and CABA and the remaining 40% goes to the Nation. In effect, of the 0.5% of GDP with the highest potential revenue, 0.30% will go to the Provinces and CABA and 0.2% will go to the Nation.
What is evident is that the result of the reform is different by province, with the amount per inhabitant being the most appropriate for measuring the impact. If the extremes are taken, the inhabitants of Tierra del Fuego, Catamarca and Formosa would benefit the most from the distribution of the collection since they would receive an additional $115,000, $110,000 and $103,000 annually, respectively. For their part, the inhabitants who would receive the least would be those of CABA, Buenos Aires and Mendoza, with $13,600, $21,600 and $35,000, respectively.
On average, the additional transfer would be $67,500. The provinces of Santiago del Estero and San Juan would have an extra income from co-participation of $67,000 and $71,000, respectively.
In the case of provinces such as Catamarca and Formosa, the earnings reform is clearly favorable. If the case of Catamarca is taken, the provincial government will receive an annual amount per inhabitant of $110,000, a figure that results from the combination of an extra income of $47.5 billion and a population of 429,500 inhabitants. This amount of money is much greater than the contribution that Catamarca residents who will have to pay a higher income tax as of the reform will make.
In the rest of the provinces it is necessary to make a comparative calculation between contribution and receipt, both in the short and long term, and it must be that of the entire legislative package that is in Deputies.
Impact on workers in a dependency relationship
According to the researcher, if the changes in Earnings contained in the Bases law are approved, a worker with a gross monthly salary of $1,100,000 would continue to pay 0. One with a salary of $2,300,000 would go from 0% to 3.6% (from $0 to $71,546 per month). One with $3,000,000, would go from 2.8% to 7.6% (from paying $82,000 to paying $197,930, per month.)
Impact on self-employed workers
In the case of self-employed workers, for a monthly income of $1,100,000, the tax burden would go from 12.6% of their net income to 0%. For one of $2,300,000, from 24.3% to 6.6%. For one of $3,000,000, from 26.8% to 10.6%. Important losses for self-employed workers.
