Employer fees, benefits and new employment regimes These are the three new variables that the government has added to the labor reform under analysis that it hopes to present to the new parliament next December, as confirmed by Economy Minister Luis Caputo in the past few hours.
Labor reform has been one of the topics receiving the most coverage in recent days, underscoring the importance of the issue for Argentine workers who are unsure of the direction the government’s proposed reforms will take.
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Minister Caputo referred to labor reform yesterday, Wednesday, November 13, during the closing of the annual conference of the FIEL Foundation, giving details about what discussions are taking place in the official sphere regarding this measure. He clarified that everything is still being analyzed. For this reason, he declined to reveal final numbers or data, but he commented on three issues that he believes will help promote regular employment in the country if reforms proceed.
“We are analyzing the costs of:Add other variables in addition to what you hearOr essentially: One is from ba.Reduce employer contributions by 3 points and replace them with compulsory severance payments.“Alternatively, it makes it much easier for companies to deal with redundancies, both in terms of costs and in terms of litigation,” he said, adding: “In that sense, we believe this is very helpful procedurally.”
Second place was the issue of taxes. “The other thing we’re looking at is you.Significantly reduce the human earned income tax deduction. And this is essentially What it calls for is a more formalized economy. You have to ask for an invoice because you can further deduct it, which leads to real formalization,” he said.
And thirdly, he said:We are considering a new incentive system for new hires.We believe this will be very well received by the business community,” he asserted.
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Regarding, In the tax sector, the government has made it clear that it aims to eliminate “distorted taxes”. “We know what our gross income, check taxes, withholdings and corporate income taxes are at the state and national level. These are the things that make us uncompetitive relative to the rest of the world today,” he said.
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But the Treasurer also bluntly stated: “Everything you’re touching on is very expensive for us today. They’re all taxes that raise a lot of tax, like taxes on checks around 1.5 points on products, withholdings at 1.2 points, but they’re all things that we can’t pay today because what that means in the short term is to break the fiscal anchor,” he pointed out.
for the minister “These are luxuries enjoyed by countries that have made things better over the years; Because they can fund this. In our case, we cannot afford such luxury and financial balance. The financial anchor is at the heart of our program, so we know where we want to go, but we need to increase our income to get there. But we want it to increase in the right way, not by increasing taxes, but by trying to widen the base by formalizing the economy, creating new jobs and growing the economy,” he asserted.
In that sense, he added: Growth is likely to be more than 5% next year.then, andIn this first step at the tax system level, we are focused on giving greater power to labor reforms to achieve greater formalization. That’s the key for us. This is the first step and, as I said, there will be many other things that will be done, including tax simplification and tax abolition. but The core of what we want to do is eliminate the most distorting taxes.“, quarrel,
In closing, Mr. Caputo emphasized: “VWe will achieve this while growing our economy. “We have calculated our own numbers, and if we can achieve a growth rate of 6% over the next few years, which is completely achievable for Argentina, we will give all that surplus back to the private sector,” he asserted, adding, “The figure is about $500 billion, which is the same as Argentina’s debt today. So there is still a lot of work left to do here, but let me be clear that I want to see the horizon and our commitment to get there,” he concluded at the close of the Foundation for Latin American Economic Research (FIEL) conference.
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