Due to high inflation, tax experts call for profits for workers over $ 300,000 a month

Taxpayers have declared that income tax must be paid on salaries in excess of $ 300,000 gross per month if the increase in the cost of living over the past year is taken into account.

While many economists rightly point out that Profits is a progressive tax from a conceptual point of view, the context of the tax system in a high-inflation economy still needs to be analyzed to understand whether effective or nominal income is taxed.

The experts described as timid the proposed increase in the president of the Association of Deputies, Sergio Massa, who Minister Martín Guzmán called for the floor to be updated immediately to honor this, instead of doing it in January 2023, as provided by law. As reported informationMassa wants the special deduction to go from $ 225,000 to $ 275,000 and be applied before next month’s half – bonus payment, but they gave him the thumb at Government House. However, In the afternoon, from the Palacio de Hacienda they clarified to Infobae that this would be done.

“The floor should be $ 298,000 to pay when you think about Christmas to December, because with a smaller sum they will be scarce in two months” (Litvin)

In this context, the experts consulted information suggests that the minimum must be adjusted for inflation and automatically, every three months.

About, Cesar Litvin held to “There should be $ 298,000 on the floor to pay when considering December to December, because a smaller sum will be short in two months.”

In any case, Litvin has declared that the increase in the special deduction – delegated by Congress to the Executive: “It’s a terrible legislative technique, it’s an analgesic that has no cure because it’s the biggest problem. This is why the IPC should automatically update it every 3 months and not at the Ripte, with all the personal updates and tables ”.

“The correct way is to modify the law in this way so that it captures the relevant economic resources, since it will otherwise seize false rents; and the IPC is better than the Ripte, so that people have more purchasing power when it comes to buying food ”, he said.

In addition, he considered that “the floor must be equal between salaried and self-employedwhich are always forgotten and ignored, because if they earn more than 65,000 pesos they are already paying profits, and the floor for wage earners is $ 225,000.

“You have to equalize them in deductions. And the special deduction system does not distinguish between single and married either.if you have a spouse and three children pay proportionately more than a single person ”, he said.

“Values ​​have become outdated, damaging the worker” (Ghirardotti)

Anna Wise indicated that “As prices increase, this percentage will quickly become obsolete and out of date, but at least today, I need to make it clear that it is close to the reality of the growing ‘purchasing power’. quickly. vTo clarify that they are generating an obligation to pay income tax on salary, which is summarized in a productive human function, this concept is far from net profit.

The specialist said that “loss of purchase value in dollar value is not taken into account, because if we consider what an employee earned in dollars in 2017, today this income was reduced by 70 percent.”

Mariano Ghirardotti He suggested that “the values ​​have become out of date, damaging the worker. It is worth noting that, in January, the gross salary amounts of the special benefit of the increased special deduction were changed, at a value of $ 225,937, as well as an intermediate regime that benefited those who received gross salary. of $ 260,580, estimating inflation for May at 6%, these amounts updated from January at CPI would give us a figure of approximately $ 281,283.10 and $ 324,412.34 respectively ”.

Even though, Felix Roland of Andersen Argentina held that “Personal tax deductions should be increased as far as the last increases approved, so as not to neutralize the tax threshold set in a timely manner ”. In this way, “considering, for example, the final salary adjustment of Commercial employees (April 2022) the current minimums should be adjusted by about 50% by 2022 ″.

In addition, he said that “It was also necessary to adjust the parts of the progressive scale and order the increase of other amounts which are wholly out of date in law, such as: deduction of mortgage interest, funeral expenses and others. “

“It would be helpful if all of these increases were made available in a general way, including self-employed workers”Roland pointed out.

At the same time, Sebastian Dominguez said “The 2021 reform came to further complicate employee income tax liquidations, by generating deeper asymmetries with the self-employed.”

“These problems arise for employers and professionals who have to calculate the withholdings, for employees who do not know how the withholdings are determined and for AFIP who must control it,” he explained. he.

Similarly, “the decision to make an annual adjustment for the Ripte change generated that the new values ​​are determined from January 2022 assuming the change to Ripte October 2021 compared to October 2020, all periods with inflation in much lower than the current one.

“This means that there are employees who start taxing profits or increase the taxation of employees who already do so by receiving salary increases to maintain the purchasing power of the salary.”he explained. That is, “profits that are true but nominal are taxed.”

“In a country with 6% monthly inflation similar to the current one, an automatic adjustment mechanism should be established to change the CPI, at least every six months and if inflation continues that path, it should be done quarterly ”.

“The amount should be updated from $ 225,937 to $ 315,000, that is, about 40% considering inflation in April and estimated for May and June, inclusive, close to 6% per month ”.

“It is essential to modify the law and return to the traditional mechanism whereby deductions are applied to fixed amounts instead of increased deductions differently for the case of each employee,” Domínguez said.

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