Argentina just abolished Income Tax...
Bold move
Argentina and economy, it hasn't been a good match in just about the last half century. Bank runs, hyperinflation, and lately again hyperinflation. No, Argentina has never been a good example of how an economy should be run. And now comes the ultimate test case for their economy. Income Tax is abolished for all workers that earn less than the equivalent of 5000 USD per month. The 1 % that is above the threshold will still pay Income Tax on the money they earn above the 5000 USD per month.
It is a very blunt move, done by the minister of finance in Argentina, which also runs for president. And those elections are held within a month from now. So, you kind of understand where this is coming from. This is a way to buy voters, nothing less nothing more. But, what will happen with the country that already has an inflation rate of 124 % at this moment, when there is an extra gap in the budget of 5.7 billion USD because of this piece of regulation?
Print more money
Yep, that will be the answer, as usual, Argentina will print its way out of this. Which will once again trigger higher inflation, and eventually the Average José of Argentina will be worse off.
This is just another stupid move by a populist politician to get to power, and people will probably fall for this trap. Officially they will not pay taxes, but the extra inflation they are getting from it, will cost them even more than what their income tax would have cost.
Economics as they are in the current capitalist world, are based on debt. You have to create debt to create money, that is how money exists. Printing money is the other way around, and doesn't add to the stack, it only inflates the cost of everything for people.
The smart move would be, to create a healthy structure, with fair taxation, on all sources of income. And by that way, no money printing would be necessary, as countries would be glad to loan money to Argentina. And that way money is created, that isn't printed, and doesn't cause inflation.
It's a weird system, our economic system, but it actually is based around debt, without debt, there is no economy...
Now, only the minister of finance of Argentina needs to get convinced of this.
Sincerely,
Pele23
Posted Using InLeo Alpha
Set a sprat to catch a mackerel.
Many countries are run this way(if not all). They only do what the citizens will think is the solution which mostly isnt. I do wonder why people are happy whenever they receive a stimulus check when they only spend it without investing any.
To many Argentina citizens this signify the fella is looking out for the little guys but it's the other way round.
I love the idea of getting rid of income tax.
Did they raise property / sales or use taxes to make up for the loss in revenue??
!DHEDGE
I love the idea too, but besides the UAE, Monaco and the Bahamas, no other country has the means to do such thing.
This post has been selected for upvote from our token accounts by @simplegame! Based on your tags you received upvotes from the following account(s):
- @dhedge.bonus
- @dhedge.leo
- @dhedge.pob
- @dhedge.cent
- @dhedge.neoxag
- @dhedge.waiv
- @dhedge.alive
@simplegame has 6 vote calls left today.
Hold 10 or more DHEDGE to unlock daily dividends and gain access to upvote rounds on your posts from @dhedge. Hold 100 or more DHEDGE to unlock thread votes. Calling in our curation accounts currently has a minimum holding requirement of 100 DHEDGE. The more DHEDGE you hold, the higher upvote you can call in. Buy DHEDGE on Tribaldex or earn some daily by joining one of our many delegation pools at app.dhedge.cc.
Inflation is taxation anyway.
Fact
How many times has Argentina reset thier currency? Much more than once.
"The definition of insanity is doing the same thing over and over again and expecting a different result." ~ Albert Einstein?
Yep, they have indeed, it’s a never ending cycle over there…
😄😎🤔😣 silly politics!..
Whatever the benefits of politics, we will see it happening in the countries, as we have seen here in Pakistan, Nawaz Sharif is back, due to which the price of petrol has been reduced by 40 rupees. It has been given so that people can vote for Nawaz Sharif.