The following report is by The Buenos Aires Times:
By a 38-27 vote, the Senate approved the legislation late Thursday advocated by Economy Minister and presidential candidate Sergio Massa, whose coalition placed third in the August primary vote. President Alberto Fernández is expected to sign it into law. Argentines cast their ballots October 22.
While Massa had already temporarily exempted 99 percent of salaried, payroll workers from income taxes by decree, the legislation permanently eliminates income taxes. Only workers who earn the equivalent of 15 federal minimum wages — 1.77 million pesos per month (US$5,057) — will continue paying income taxes, a fraction of the workforce. To be sure, a new government takes office December 10., and could reverse the measure.
As he cuts taxes, Massa is attempting to recoup lost electoral ground by spending heavily. He’s giving millions of informal workers handouts, increasing social security pay-cheques and upping salaries for public sector employees. All that, economists estimate, will cost two trillion pesos (US$5.7 billion) that will be largely financed with Central Bank money printing that will fuel future inflation.
The lost revenue via income taxes, combined with increased fiscal spending, heightens risks to Argentina’s US$44-billion programme with the International Monetary Fund after Massa had committed to austerity in August.
The recently adopted policy measures and announcements add to Argentina’s challenges. The economic situation remains very challenging and complex.
IMF chief spokesperson Julie Kozack said at a press conference in Washington Thursday.
AUTHOR COMMENTARY
As cold waters to a thirsty soul, so is good news from a far country.
Proverbs 25:25
Even though this appears to be buying votes, it’s at least noteworthy and a sigh of relief for the Argentinians. The question is is how long will that hold.
This is another reason why I have such animosity towards the political system and voting here in the United States. The U.S. was a country founded on zero taxes, and now we have exuberant taxes on everything, even though, as the textbooks repeat over and over again, we went to war with Great Britain and fought for our independence because of “taxation without representation.”
And yet nowadays we never here a word about cutting taxes on anything, as the multimillionaires and multibillionaires are paying nothing because of the tax loopholes in place, while we the plebs are getting robbed openly of trillions annually.
[6] For for this cause pay ye tribute also: for they are God’s ministers, attending continually upon this very thing. [7] Render therefore to all their dues: tribute to whom tribute is due; custom to whom custom; fear to whom fear; honour to whom honour. [8] Owe no man any thing, but to love one another: for he that loveth another hath fulfilled the law. Romans 13:6-8
Let me be clear: I am not an anarchist who despises government, and I do believe in honestly paying your taxes. What I take issue with is the endless and hefty taxation from an abominable government that uses our tax money to pay for illegals and fund proxy wars, divided up to a small class of the ruling few.
Income tax is pure socialism.
[7] Who goeth a warfare any time at his own charges? who planteth a vineyard, and eateth not of the fruit thereof? or who feedeth a flock, and eateth not of the milk of the flock? [8] Say I these things as a man? or saith not the law the same also? [9] For it is written in the law of Moses, Thou shalt not muzzle the mouth of the ox that treadeth out the corn. Doth God take care for oxen? [10] Or saith he it altogether for our sakes? For our sakes, no doubt, this is written: that he that ploweth should plow in hope; and that he that thresheth in hope should be partaker of his hope. (1 Corinthians 9:7-10).
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This is wonderful news! America needs to learn a lesson from Argentina.
Just one thing left to do for Argentina: oust out Roman Catholicism and church buildings in general.