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Argentinian here. Article has some flaws that could cause a different perception of the situation: - The income tax isn't really "eliminated", that's not right
by gzalo 3y ago
Argentinian here. Article has some flaws that could cause a different perception of the situation:
- The income tax isn't really "eliminated", that's not right, it just has a higher starting point and is now indexed to the monthly wage. Otherwise it required yearly updates that were quite messy. It starts to apply to gross salaries above 15x the minimum monthly wage (the starting point used to be WAY lower).
- 1.7 million pesos isn't really 5k USD, as no one has access to that exchange rate. It's more like 1800~2000 USD monthly.
Overall I think it's a good measure, but it still doesn't tackle the elephant(s) in the room: Having >40% poverty, having an unrealistic exchange rate, low minimum wage, informal economy and workers, problems renting/buying real-state, unsatisfactory education results...
- TulliusCicero 3y agoArgentina already has very high inflation, doesn't it? Won't this lead to money printing that will make the problem even worse?
- kwanbix 3y agoAlso that. Is an "electionist" meassure by the current president Sergio Massa (he is not officially president, but he is acting like one for more than a year) who is running for president.
- carlosjobim 3y agoHow would that lead to any money printing? Labourers cannot print any money.
- wuliwong 3y agoI am guessing that the reasoning is with less income tax revenue for the government, they will need to create more money to pay the bills. The only way to prevent this would be to reduce the spending the same amount as the reduction in tax revenue.
- TulliusCicero 3y agoBecause less tax revenue means that the government would print more money to pay its bills.
- carlosjobim 3y agoWhat's wrong with that? They're already in hyperinflation.
- TulliusCicero 3y agoAre you going to acknowledge the point, or just move what we're talking about? You asked why that would lead to money printing, which I answered, then you jumped to something else.
- carlosjobim 3y agoSigh... I hereby acknowledge officially to the Hacker News poster known as Tullius Cicero, that I understood the explanation being given as to why some are of the opinion that decreased government income from labour taxation would give the same government reason to borrow more money for their budget, casually referred to as "printing money". Edit: People who are down voting could for example explain why it is acceptable to tax the labour of another human being, but not acceptable for the government to run a deficit or devalue the currency ... or default. Taxes on labour are a form of serfdom, one of the worst evils of humanity. Maybe acceptable when you have a cushy and high paid office job, but a satanic burden for those who are stuck in the hell of heavy and stressful labour for their survival.
- gatinsama 3y agoArgentinian here. I agree with everything. Plus: desperate attempt for the current party to cling to power. Don't read too much into this event.
- ivanmontillam 3y agoVenezuelan in Argentina here. I also agree with everything. Massa knows he'll lose the election. This is a measure to destroy the economy even further, so the next government gets delivered a mess. Massa is playing a longer game here as he aims to get elected not this time, but in years later in a Messianic way ("I told you so" victory). If Bullrich wins, she'll not be competent enough to fix the mess. If Milei wins, he'll appear as tyrant when new economic measures are put in place. I'm not defending either side, I'm just providing my experienced viewpoint in populism.
- AwaAwa 3y agoPopulism is the end result of all democracies, as the populace gets complacent, then ignorant, while being sold dreams of wanton entitlement. Sad to the situation in Venezuela and Argentina. Maddening, that with such modern examples, everywhere else still thinks 'it won't happen here because we're <insert something condescending>'.
- Yeul 3y agoAfter Mao the Chinese literally had to find 80 year old retired professors living in remote mountain villages to start teaching at university. The first graduates had to teach the next class. Any mess can be fixed if the people will it so.
- 2pacZ 3y agoThe statement is a hyperbole that does not reflect the complexity and diversity of the historical reality. The Cultural Revolution had a devastating impact on education in China, but it did not completely destroy it or make it impossible to rebuild. Some retired professors were recalled to resume teaching after the end of the Cultural Revolution, but they were not necessarily 80 years old or living in remote mountain villages. Moreover, they were not the only source of qualified teachers, as some younger academics who survived the political turmoil also returned to their posts or were promoted. Furthermore, the first graduates after the reopening of universities did not have to teach the next class, as there were still entrance exams and admission quotas to select the best candidates. The government also implemented various policies and reforms to restore and improve the education system, such as expanding enrollment, increasing funding, diversifying curricula, and promoting scientific research.
- germandiago 3y agoEl problema del salario digno va muy atado a la productividad. El de la economía informal... es que os machacan a impuestos e inflación... es bárbaro lo que estáis pasando, y, en mi opinión, cómo os han tratado los políticos. Mucha suerte y que salgáis lo más pronto posible de todo esto. Un saludo cordial.
- SpartanJ 3y agoIt's also important to mention that given that the projected inflation for 2024 is above 200% and historically this taxes are not properly annually updated, the most probable scenario is that in a year or a few months most people that were benefited are going to pay income taxes again. So this are just populist measures to get some votes for the incoming elections (also mostly forced by the liberal party that is leading the polls), but won't last much.