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The number of workers reached by Earnings doubled in 5 years

2020-10-08T09:51:08.381Z


It is because the non-taxable minimum increased less than wages.Ismael Bermudez 10/08/2020 - 6:00 Clarín.com Economy In the last 5 years, the number of workers and retirees reached by the Income tax has doubled: it increased by almost 1.2 million and not because they had improvements in assets but quite the opposite. They were trapped by this tax because the non-taxable minimum, from which the tax is calculated, increased less than wages and wages less than


Ismael Bermudez

10/08/2020 - 6:00

  • Clarín.com

  • Economy

In the last 5 years, the number of workers and retirees reached by the Income tax has doubled: it increased by almost 1.2 million and

not because they had improvements in assets

but quite the opposite.

They were trapped by this tax because the non-taxable minimum, from which the tax is calculated,

increased less than wages

and

wages

less than inflation.

So, even with lower real wages, more workers began to pay Profits and those who were already paying, 

began to pay more.

For example, the non-taxable minimum was adjusted for this year by 44.27%, below the 53.8% inflation of 2019. That year the non-taxable minimum of Earnings was adjusted by 28.45% with a rise in the prices in 2018 that amounted to 47.6%.

This year, singles with a net income (after retirement and social work discounts) of $ 55,261 and married with 2 children with more than $ 73,102 net are paying Earnings.

Official numbers show that, in July of this year, 2,259,869 dependent workers, retirees and pensioners were withheld from their salaries and assets the Income tax.

They are 1,065,720 more than the 1,194,149 they paid in July 2015.

The 2020 numbers were provided by the Chief of Staff, Santiago Cafiero in the Report to Congress, without disaggregating the numbers of workers and retirees.

And those of 2015-18 by the then Chief of Cabinet, Marcos Peña, also in his reports to Parliament.

Of the 1,194,149 in July 2015, in the same month of 2016, they already added 1,688,141;

in July 2017, a total of 1,990,349 and in July 2018 they totaled 1,939,994.

In 2020, it started in January with 2,139,396, reached a peak in June with 2,289,843 and in July there were 2,259,869 retirees and workers.

By activity, between public employees and retirees in July of this year reached 890,069 those reached by Earnings.

They were followed by those who work in the manufacturing industry, with 267,359;

banking and insurance employees, with 155,081 and transportation and storage, with 125,508.

For the taxpayer Marcelo Rodríguez, “between March 2013 and December 2015 the sums corresponding to personal deductions - minimum non-taxable, special deduction and family charges - did not have modifications, thus generating

a greater tax burden

on taxpayers.

As of the enactment of Law 27,346 (12/27/2016), both personal deductions as well as the table that contains the tax rates are updated annually by the coefficient arising from the annual variation of the Average Taxable Remuneration of Stable Workers (RIPTE), corresponding to the month of October of the year prior to the adjustment with respect to the same month of the previous year ”.

The specialist considers “that this adjustment mechanism is insufficient, since it

is applied in the future considering a parameter from the past

.

Considering the increasing rise in inflation, the increase in wages usually exceeds the rate of increase in deductions, thus generating not only that wage earners suffer a greater reduction in their remuneration, but that the number of people reached by it is increasing. tax".

Rodríguez suggests "that the National Congress modify this adjustment methodology, introducing an index that more clearly reflects the loss of purchasing power of wages due to inflation, such as the CPI."

In addition, it points out that “since 2017, the possibility of counting parents, grandparents, great-grandparents, grandchildren, in-laws, daughters-in-law, sons-in-law, brothers, etc. as family charges was eliminated.

In other words,

the only computable family charges are the spouse and children.

Also, the age up to which the children

are

considered a family burden

was reduced from 24 to 18 years

, also since the fiscal period 2017. And since 2018, only one of the parents can count the children as family burden, or if applicable, both parents may compute 50% of the amount considered ”.

Meanwhile, for the tax expert César Litvin, “the increase in the number of workers who pay Earnings has its origin in inflation with personal deductions that are adjusted only in January of each year and with average wage rates (RIPTE) that are below of the rise in prices.

This means that more workers are trapped by the tax and without having tax capacity due to the greater increase in the cost of living.

Going forward, that means that a part of the salary recovery that could be obtained,

does not enter the worker's pocket and stays on the road to the State

”.

NE

Look also

Unusual Argentina: Profits pay salaries that are just above the poverty basket

A middle-class Buenos Aires family needed $ 3,517 per day in September to meet their expenses

Source: clarin

All business articles on 2020-10-08

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