The Argentine Chamber of Commerce and Services (CAC) expressed its concern about the "Wealth Tax," which seems to be close to becoming a worrying reality. This week, it was learned that Kirchnerism already has the votes to approve it.
Through a statement The CAC stated that "it understands that progressivity is a welcome characteristic of tax schemes, but also that before moving forward with an extra obligation it must be taken into account that in the country there are already taxes that are based on the economic capacity of the taxpayer, such as the Income Tax and the Personal Property Tax., the latter taxing the same assets on which the proposed tax is intended to be applied and whose rates have increased up to 9 times in the last year.
Furthermore, the entity is convinced that the expansion of activity, the reduction of poverty and the correction of the fiscal deficit, In order to be sustainable, they require the existence of a dynamic and modern private sector, which is why they see it as difficult to achieve if the burdens placed on it continue to increase.
In his statement, The CAC considers that "the reduction of the fiscal imbalance demands a gradual reduction of public spending", through the elimination of various inefficiencies and a progressive replacement of assistance programs –very necessary in the emergency– with genuine private employment. Likewise, in terms of fiscal income, a comprehensive tax reform is required to consolidate the progressiveness of the system, resolve its extreme complexity, cause a substantial reduction in informality –which constitutes unfair competition for those who do comply with their obligations–, encourage investment, promote the creation and development of companies and harmonize territorial and dimensional asymmetries.»
Although the entity agrees that the country's situation is very complicated, as a result of the coronavirus pandemic and the associated restrictions, it warns that it should not be forgotten that our country has a long tradition of taxes born in the emergency, almost always distorting, which end up perpetuating themselves, increasing the increasingly high "Argentine cost".
To conclude, the CAC reiterates its concern about the aforementioned initiative and advocates finding other paths for the necessary fiscal consolidation, in benefit of investment, job creation and economic and social progress for the entire nation.
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