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After going backwards with the fiscal package, the Government is closer to withdrawing the project

Behind the withdrawal of the fiscal package which was announced last Friday by the Minister of Economy Luis Caputothe Government is also analyzing going back with the modification of the income tax which he sent to Congress last week. So they entrusted it to Ambit high fountains of the Casa Rosada. This Monday, the legislative representatives of the ruling party will have a key meeting with members of the national cabinet to reformulate the parliamentary strategy. In it Treasury Palace ensure that the objective of zero financial deficit “remains immovable.”

First blows of the press conference. With the title of “personal income tax”, last week the Government had sent a proposal to lower the non-taxable minimum earnings to $1,250,000 gross per month, but official sources confirmed to this medium that the bleeding suffered in the omnibus bill now puts that modification in check.

“It was not included in the fiscal package, it had entered independently. We are in no rush to start treating it. On Monday we are going to meet with part of the economic team to define the strategy,” the La Libertad Avanza bloc of deputies explained to this medium. In the Pink Housewere even more forceful: “The idea is to withdraw the modification of Earnings,” they said.

The discussion with the governors

From a political perspective it could be read as a retribution of kindnesses to the governors who hoped to compensate in some way for the income from co-participation that they lost with the last modification that Congress voted on just three months ago and that they negotiated with the Executive until the last moment his support for the Government’s package of measures.

A provincial leader, in dialogue with this medium, has already stated as a fact the withdrawal of the initiative by the ruling party. Alternatively, there are Projects presented by the Catamarca representative Fernanda Avila and the Buenos Aires native Carlos Castagneto to share the check tax and the country tax respectively. They are not seen favorably by the Executive.

The economic team analyzes alternatives

The omnibus law As it was proposed from the beginning, it estimated, between spending cuts and increases in income, an improvement of 1.8% of GDP for the treasury. Added to this, according to the projections of the Ministry of Economy, another 0.4% due to the “reversal in the earnings reform.” That is to say, the legislative reversal would imply, in short, a drop of 2.2 points in the product.

In the Government they say that This does not alter the plans. President Javier Milei told Ambit that “adjustment is not negotiated.” Along the same lines, the Secretary of Finance Pablo Quirno assured that “the objective of zero financial deficit for this year remains immovable.” The former JPMorgan and Minister Caputo’s extremely trusted man added: “We have all the tools to be able to do it.”

The economic team is already analyzing alternatives. The less gradualness in the removal of economic subsidies, transfers to the provinces and the update of the tax on liquid fuels appear as some of the variable adjustment powers. Although, of course, the chainsaw is not the only one on, the appliance most explored by La Rosada so far is the blender.

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