in a dialogue with Channel Etributary sebastian mancuso Following presentations by Argentina’s industrial unions and the economy minister of the insurance sector, he insisted that the government aims to cut taxes and modernize the labor system without jeopardizing the fiscal balance.
Gradual tax cuts and increased purchasing power
During the interview, Mancuso considered the government’s economic signals to be positive. “Minister offered positive signs of tax relief for businesses and taxpayers”, he said, explaining that the official intention is to increase the personal deduction of income tax for employed workers, which will increase purchasing power and encourage consumption in 2026.
Experts emphasized that this measure requires:Increase your net salary to focus on consumption and savingsAdditionally, he highlighted the proposed expansion of retirement insurance contribution deductions, which could benefit both workers and employers.
“This gives rise to savings funds, which exist in many countries and can supplement national retirement benefits in addition to tax deductions for contributors.“The tax officer explained.
In that line, mancuso We talked about “”virtuous cycle“Cut taxes, increase disposable income, increase domestic consumption. But the government has warned that it plans to proceed in stages.”It would not be comprehensive tax reform, but rather taking small steps while monitoring the fiscal balance.”, he asserted, adding that the reduction amount was “surgical” and conditional on the stability of public accounts.
Labor reform and controlled economic opening
When asked about the labor front, mancuso He said:Government is particularly focused on compensation costs for small and medium-sized enterprises“We explained that the creation of a retirement fund is underway to prevent unexpected costs arising from layoffs,” he said.It’s not about workers losing compensation, it’s about payments generated from previous funds.” he declared.
Regarding workloads, experts identified the following challenges:Pension systems are in crisis today, making it even more difficult to cut them.He argued that to make progress in this regard, informal employment needed to be formalized and contributions strengthened.
Regarding economic opening, mancuso He defended a smart strategy. “Argentina has been too closed off in recent years. have to take a wise approach” he claimed, adding:To compete with foreign companies, we first need to lower local tax burdensIn conclusion, he emphasized that many small and medium-sized enterprises are operating in unfavorable conditions.Small and medium-sized businesses in Argentina cannot learn to be open. There must be an orderly transition”.
In an optimistic but cautious tone, the tax expert concluded that the key to 2026 lies in a combination of fiscal relief, fiscal balance, and labor modernization, all essential pillars of sustaining economic recovery.
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