While multimillionaires will have a reduction from 5% to 0.45% in taxes for owning mansions, yachts and private planes, qualified workers who earn a little more than the cost of the family basket will have to pay income tax again. Even though it is now called “personal income tax,” the regulation of the article of the fiscal package presented by La Libertad Avanza is nothing more than the restitution of a scam to a sector of wage earners. Milei himself had said during the electoral campaign that “we are faced with the enormous delirium of treating wages as profit. This tax is filthy and must be eliminated,” to be reimposed upon assuming the presidency.
The liar Milei restores the income tax on workers’ salaries. A “filthy tax” he had said when he occupied a seat in the House of Representatives and voted for its elimination. Now in government he does the opposite. Good for the caste. The salary is not…
— Nicolas del Caño (@NicolasdelCano) July 22, 2024
Starting in July, the new Income Tax regime establishes that workers without children with gross incomes of more than $1,800,000 ($1,480,000 net) and those with two children who earn more than $2,100,000 ($1,780,000 net) will be required to pay the tax. Tax rates vary from 5% to 35%, with quarterly updates until the end of the year and half-yearly updates starting in December, based on the Consumer Price Index (CPI). It is estimated that the reinstatement of the fourth category affects about 800,000 employees.
After having affected up to 20% of workers with the income tax, Peronism opted to almost eliminate it for wage earners under Massa’s administration as an attempt to gain votes in the last elections. Its role was also important for its reinstatement, since the tax package was supported by the Catamarca deputies of the Unión por la Patria bloc, Fernanda Ávila, Dante López Rodríguez and Sebastián Noblega, who answer to the governor of their province, Raúl Jalil. In the Senate, the legislators elected as part of the Frente de Todos ticket, Edgardo Kueider and Camau Espínola, also contributed their votes for the law to be approved.
As stated on Monday by the former national deputy of the Left Front, Myriam Bregman: “The governor (of Salta) Gustavo Sáenz is a friend of Sergio Massa, he said that they were the alternative and faced Javier Milei because he was fascism, but now he is openly moving to an alliance in Congress for the worst laws against the people. In her statements this Monday on FM La Plaza 94.9 she added: “Milei said during the campaign that nothing different was going to be done with the same people as always. He was right: he allied himself with the same people as always and is carrying out an adjustment plan rarely seen in our country. Sáenz and other governors like Jalil and Jaldo [Raúl y Osvaldo, de Catamarca y Tucumán] allow Milei to move forward with an aggressive plan against popular interests.”
The regulatory decree published on Monday repeals previous regulations that established exemptions governing income from overtime, teaching materials paid by teachers, long-distance land, water and air travel expenses, productivity bonuses and cash shortages. In addition, employees in Patagonian areas lost the benefit of the 22% increase in personal deductions, becoming more exposed to the tax because they live in an area of the country with higher prices.
Milei is not the only one who has turned around (he had even said that before raising a tax he would cut off his arm), the trade unions, despite their speeches against the reinstatement of the tax, did nothing to prevent its implementation. The Government’s plan seeks to make workers and their families pay the costs of the economic crisis, and grassroots organisation will be key to putting a stop to its plans and fighting to reverse the burdens, imposing progressive taxes on multimillionaires and concentrated capital.
Source: www.laizquierdadiario.com
