After the departure of the Minister of Productive Development, Matías KulfasPresident Alberto Fernandez heads today the presentation of the “unexpected income” project. It is an initiative of the national government that aspires to a “greater distribution of income”. The political act began minutes after 5:30 p.m., in the Casa Rosada Bicentennial Museum room.
At the ceremony, the President is accompanied by the Minister of Economy, Martín Guzmán, the only presenters of the afternoon.
The act began 34 minutes later than scheduled because, according to various sources, several invited officials were greeting Matías Kulfas, before he left the Casa Rosada.
“When, a few days ago, we announced the aid of some bonuses for the most neglected sectors, at that moment I raised the need for us to review how those who were obtaining an unexpected income could collaborate with the social group”, began the President, who considered that “Economic war transcends the borders of the countries in conflict”.
The President continued: “What we most want is to generate a huge debate about how we want to live in Argentina. Because a society is a society where everyone wins. When some earn a lot and millions get poorer, that’s not a partnership, it’s more like a scam. The truth is that we have not come here to validate scams, but to validate equalities. To match needs.
As the first speaker, Guzmán began with criticism of the management of former President Mauricio Macri, without mentioning him. The minister went on to mention the effects of the war in Ukraine on world economies. “Argentina is not exempt”, he pointed out, and continued: “There are sectors that have benefited from the war situation.”
“In general, there has been a shock to the distribution of income and wealth. If nothing is done, the consequence is greater inequality and societies that function worse… The state must fulfill its role for a society that progresses”, Guzmán considered, and questioned those who oppose the initiative. “Saying ‘I am opposed to any necessary action so that a society does not suffer greater inequality’ is perverse and does not represent us”he pointed.
Guzmán went on to state that similar strategies have been used in other countries, such as the United States and Italy. “This is not a matter of social justice,” he assured, emphasizing: “We want the economy to grow, we want companies to grow, but that growth be shared, that it reaches all workers.”
The act began minutes after 5:30 p.m., with a speech by the Minister of Economy, who began with criticism of the management of former President Mauricio Macri, without mentioning him.
weeks ago when the project was announcedthe head of the Palacio de Hacienda said that the collection of the rate for “unexpected income” would impact “companies that have taxable profits greater than 1,000 million pesos per year.” “Which is a very small portion of the entire network of companies”, I observe.
In addition, from the portfolio that Guzmán leads, they affirmed that the initiative will cover “less than 1% or at most 1% of the companies.” Initially, it will last a single year.
It was also anticipated that the criteria for the imposition of the rate will include that the real taxable net income must have grown significantly in 2022 compared to 2021.
In addition, a parameter will be set so that if the unexpected income is channeled towards productive reinvestment, the rate is lower.
The project, which Guzmán anticipated weeks ago but will only come to light today, will aim to tax the “extraordinary” profits – 20% higher than the previous period – that some sectors of the economy had as a result of the increase in international prices. that triggered the Russian invasion of Ukraine. As they remarked, it would not affect new investments.
“What is aimed at is to be able to capture part of the extraordinary income that is not the product of an additional investment, but is the product of the war, in order to be able to attack the main problems of Argentine society and at the same time encourage investment. including conditions that establish that if this windfall income from the war is reinvested, then the contribution made is less,” said Guzmán, presenting the initiative.
When the first details of the project became known, a month ago, the field reacted. This is one of the sectors that benefited from the rise in the price of commodities. However, from the Executive they clarified that “in no way will it include agricultural production”. Although, strictly speaking, they referred to the producers.