President Javier Milei’s administration has sent a bill to Congress that would lower the income tax threshold. The government also promised to implement a comprehensive overhaul of Argentina’s tax system in 2025 if it meets its 2024 fiscal goals. The drive to cut income tax was spearheaded by former Economy Minister Sergio Massa of Peronist Unión por la Patria coalition, who ran against Milei in the presidential run-off. The bill would move from a set income tax threshold to a system that depended on gross income minus social contributions. It continued by stating that income tax is the most progressive tax in Argentina’s fiscal system because it is calculated based on how much an individual earns, rather than being applied universally irrespective of income.

Source: Bueno Aires Herald January 26, 2024 03:36 UTC