🇦🇷 Argentina abolishes income tax

Well, not entirely, but close.

Argentina has announced that it will exempt millions of workers from paying income tax in an attempt to boost the standing of Economy Minister, Sergio Massa, in next month’s presidential election.

However, the measure puts the nation at risk of deepening the country’s fiscal hole.

As of October, workers earning less than 1.7 million pesos ($4,857) per month will no longer have to pay income tax, up from the previous threshold of about 700,000 pesos, according to Massa’s statement.

This exemption means that only 90,000 top-level managers and senior executives across the country will be required to pay the tax, which is less than 1% of the total number of registered workers.

Massa is competing to advance to the second round of Argentina’s Oct. 22 presidential election after his Peronist coalition finished third in last month’s primaries.

He met with the country’s biggest union leaders on Monday to unveil the measure and made the announcement during a rally in downtown Buenos Aires, where he urged voters to support him in the upcoming election.

“Workers will not pay any more taxes on their earnings,” he said.

His main competitors in the election are Javier Milei, who emerged as the primary vote winner, and Patricia Bulrich.

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