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We have some discontinuities in our tax code in Argentina, if you are an independent worker, and earn up to 11,916,410 pesos ($11,682) per year, you pay 793,332
by vhcr 3y ago
We have some discontinuities in our tax code in Argentina, if you are an independent worker, and earn up to 11,916,410 pesos ($11,682) per year, you pay 793,332 pesos ($777) in taxes, around 6.6%, but if you earn one more peso, you enter the general regime, and start paying >50% in taxes.
- y04nn 3y agoA simple solution (probably used in many places) to this problem is to have brackets. Everybody is taxed 6.6% on its income until a certain threshold and the rest is taxed at 50%. You can add more brackets as needed. And so, there is no incentive to be just bellow a certain bracket threshold.