The government of Javier Milei obtained his “first victory” this Thursday morning of his management in the Congressafter the Senate will approve the Bases Law and its Fiscal Package, in an already reduced version, but which was also scrapped before, during and after the debate, to get the majority of their affirmative votes.
As could be seen, minutes after 11:10 p.m., The vote took place that ended 36-36 and subsequently, the head of the Upper House, Victoria Villarruel, He broke the tie with his vote in favor, without first justifying it with his approval of the police repression of the protesters who were outside the Legislative Palace.
However, after so many comings and goings and arrangements between corridors and offices, How was the project that was approved and that now must return to Deputies for its latest changes?
Bases Law: the changes for approval in the Senate
Provisional Moratorium
The first change that was confirmed at the beginning of the session was the suspension of the elimination of the pension moratorium, the tool that allows you to access a retirement if you are of retirement age and need to regularize the pension contribution debt.
Instead, the Government intended to establish the so-called Proportional Retirement Benefit, a monthly salary equivalent to the Universal Benefit for the Elderly (PUAM), which It represents 80% of the minimum retirement income.
If not corrected, Those who do not have the necessary years of contributions will only be able to access the PUAM at age 65 and they would have received only 80 percent of the minimum salaryregardless of the number of years they have contributed and as long as they could demonstrate that they are in a situation of social vulnerability.
Companies that are not going to be privatized
Another modification that happened at the start of the session, which lasted around 17 hours, was it is removed from some companies that are not going to be privatized (for now).
Precisely, article 7 of “companies subject to privatization” was modified and eliminated Argentine Airlines, the Argentine Mail and Radio and Television Argentina (RTA) (Public TV, National Radio and its 40 repeaters in the country).
New organisms were also included that They cannot be dissolved, like the Atomic Energy Commission and entities linked to culture, as well as the financing to fulfill the National Science Plan 2030.
Likewise, for cases of Nuclearelectric Argentina Sociedad Anónima (NASA) and Río Turbio Carboniferous Deposits (YCRT) and Yacimientos Carboniferous De Río Turbio (YCRT) were requested to “organize a joint ownership program and place a class of shares for that purpose; and incorporate the participation of private capital, with the National State having to maintain control or majority participation in the social capital.”
Changes in the RIGI
He Incentive Regime for Large Investments (RIGI) It was approved with 38 affirmative votes, but with a series of modifications that include:
- The ruling party added to the oil, gas, steel and tourism as activities that may participate in the regime of supposed large investments, as long as they meet the requirements of the regime. These branches were added to the infrastructure, energy, technology, forestry and mining that already appeared in the text that had half a sanction from Deputies.
- Local suppliers that participate in the regime will have a benefit of 20% of the entire investment amount“as long as the offer is available and under market conditions,” as clarified.
- Exchange incentives: They will be 20% after two years of starting the investment, 40% after three years and 100 after four.
- To these two changes was added another that points to “protect” the Argentine State against possible complaints in international courts. It was voted that the enforcement authority will have 45 days to decide whether or not to approve a request to join the regime.
Change in Profits
In the wee hours of this Thursday, the Senate completely rejected Title V of the fiscal package, which restored the fourth category of Income Tax, corresponding to workers in a dependency relationship.
Mainly, it established a non-taxable minimum of $1.8 million gross (no discounts) for singles and $ 2,340,000 for married people with two children.
Modification in Personal Assets
Title III of the fiscal package was also rejected, which established modifications in the Personal Property regimewhich taxes the ownership of property in the country and abroad.
In this section, it was proposed to increase to $100 million the floor from which a person will be covered by the tax and modify the rates. Finally, the floor will continue at $27 million, with a maximum rate of 1.75% for local assets and 2.25% for those located abroad.
The social monotax continues
The Upper House approved the changes introduced to the monotax/small taxpayer regimebut rejected an article that eliminated the social monotax.
The approved articles update and unify the billing maximums up to $68 million annually. The changes also increase the limits of each category by between 200% and 300%: category A (the lowest) will be able to bill up to $6.4 million annually (currently it was $2.1 million), while category K (the highest ) will be capped at $68 million.
However, the elimination of the social monotax was rejecteda tool intended mainly for workers in the social economy, which currently reaches more than 600 thousand people.
Base Law: what remained of the project
delegated powers
The legislative delegation is the exceptional and limited qualification that Congress can confer on the Executive Branch so that it can temporarily exercise some of the legislative powers that the Constitution grants to the Legislative Branch.
According to article 76 of the national Constitution legislative delegation is “prohibited” in the Executive Branch, except in specific matters of administration or public emergency”.
This means that the delegation may occur, as long as it has “a fixed deadline for your exercise within the bases of the delegation that Congress establishes”.
“Congress retains ownership of the delegated legislative power, may exercise it while the term of the delegation elapses, and You can even resume it early by repealing the law by which it is granted.“explains constitutional lawyer Alfonso Santiago (h) on the website of the Chamber of Deputies.
Labor regime
Another item without modification were chapters IV and V related to the registered employment and “labor modernization”: First of all, it was established that the State unions will not be able to deduct part of the salary of workers who are not affiliated or who have not explicitly expressed their agreement for the union to make said discount. It also determines that those workers who go on strike will be deducted proportionally for the hours not worked, without any type of administrative sanction.
Meanwhile, it establishes that those officials of bodies or organizations that are eliminated will be made available for up to 12 months and that they will then be separated from the National Public Administration if they do not find another position.
Title IV of the text is intended for the “promotion of registered employment” in the private sector, which allows employers to regularize employment relationships that began before the law comes into force, giving them a period of 90 days to do so. The businessmen will remain exempted from any legal action and debts related to violations, fines and sanctions.
However, title V, on the new job, which among the main measures includes extension of the trial period from 3 to 9 months and the creation of an optional severance fund to be determined in collective labor agreements as an alternative to compensation.
Bases Law: the PDF with the full text of the project
https://drive.google.com/file/d/1QIQ-cyR5CUXiPZDWc8OEFRKX5Mlu9XM6/view?usp=sharing
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