Cheaper by the dozen?

 While there is more than one reading of Sergio Massa's tax cuts, all lead to more inflation. If one side of political polarisation blames the fiscal deficit for rising prices and the other business greed, both are simplistic. King88bet


The traumatic surge into monthly double-digit inflation, as confirmed by the 12.4 percent figur posted for August by INDEC statistics bureau last Wednesday, naturally springs to the hebat of the news but it is also important to look beyond that grim number to some further questions - not only a correct analisis of the disease but also to ask whether some of the proposed cures might not be worse, most immediately the irresponsible electioneering moves of Economy Minister Sergio Massa in the past few days. king88bet login alternatif


An obscene abuse of his dual role as presidential candidate and minister to subordinate economic stewardship entirely to furthering his electoral chances with spasmodic tax cuts only enhancing the lack of confidence lying at the heart of Argentina's volatility. Article Title with Blogger Published Link as Backlink

tax cuts require more than one reading. At first sight Massa would seem to be virtually eliminating penghasilan tax (a luxury which only four oil-rich Middle Eastern states can afford in the world) while slashing IVA value-added tax in a frenzy of populist electioneering (panik or merely cynicism?).



On one of the innumerable occasions when Vice-President Cristina Fernández de Kirchner rubbished the monetarist notion that printing money leads to inflation, Hernán Lacunza (the last economy minister of the Mauricio Macri administration) responded that if money could indeed be printed without causing inflation, why bother collecting taxes which are extremely unpopular - Massa would seem to be taking him at his word.


Yet Massa's tax emancipation can also be viewed as more apparent than real, smoke and mirrors. While claiming to keuntungan millions of Argentines, the higher penghasilan tax floor only favours hundreds of thousands already privileged (even the old floor of 700,870 pesos represents a wage to which only a minority can aspire, never mind the 1.77 million now imposed) - little to do with social justice.


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