On the eve of the end of the long saga over the Bases Law, one cannot help but wonder: will we again witness incidents in Congress Square? Will we have to endure again the scenes we witnessed two and a half weeks ago? Although I hope that is not the case, I would not rule out that those accustomed to doing politics through violent actions make an appearance again.
So, what remains of the Base Law? Compared to the extensive project sent in January, little. The Government has had to give funds to the provinces to obtain their votes, make some political concessions and greatly limit its original expectations. Aerolíneas Argentinas, public media and the mail are not going to be privatized. At least for now.
However, this also gives the Government an opportunity. In the next legislative elections they will be able to argue that they need more legislators to be able to carry out a broader reform of the State.
What is going to happen to Profits? Everything indicates that there is an agreement between the Government and the governors to approve it and keep it in force. The income tax is a good tax from a tax point of view and also guarantees financing for the provinces. It would be ideal if these taxes could be reduced without increasing other distorting taxes, such as Gross Income or the check tax.
But that will be a matter of discussion later. For now, what the Government has achieved is significant in view of its capacity and the extensive agenda it has imposed on itself. The implementation of the Base Law will require time and effort on the part of the Milei administration.
It is expected that tomorrow, as the signs indicate, the deputies will make some decisions that the Senate made such as privatizations and insist on Profits. Although the end of this saga is not yet written, everything indicates that an agreement will be reached. The Government has decided to put an end to this issue: end the Bases Law and turn the page.
We will see if tomorrow the Chief of Staff Guillermo Francos and Congress respectively meet their objectives.
