11/16/2020 2:01 PM
Clarín.com
Economy
Updated 11/16/2020 2:01 PM
The
Business Convergence Forum
expressed its
"great concern"
about the progress in the Chamber of Deputies of the bill of Extraordinary Contribution to large assets, also known as "wealth tax." It is an initiative that is confiscatory " said the entity El Foro, which represents the 80 most important institutions in Argentina (AEA, UIA, IDEA, ACDE, the Rural Society, ABA, DAIA and the Chamber of Commerce, among others).
The project is an initiative of deputies
Carlos Heller
and
Máximo Kirchner
and is scheduled to be discussed this Tuesday in a special session of the Lower House.
Through a press release, the Convergence Forum expressed its position against the project.
"The Business Convergence Forum observes with great concern the progress, in the Chamber of Deputies, of the Draft Law on Extraordinary Contribution to large assets," the statement said.
"It is surprising that, at a time when it is necessary to promote private investment to recover economic activity and generate genuine employment, the Chamber of Deputies promotes a bill that, clearly, will generate an
inverse effect
, and that, when it is It is necessary that we all use our energy towards the same goal, a discussion is introduced that
once again divides
the Argentines. "
"The
absurdity
of this tax is so evident that its mere discussion is surprising," the communication added.
"This is an initiative that is
confiscatory
, by
once again taxing assets that are already subject to other taxes
and ignoring the economic reality of individuals, generating transfers of resources between productive regions, further centralizing power at the national level."
Why does it affect regional economies?
According to the Business Forum, "as it is a
non-coparticipating
tax
, new transfers of resources are originated from the provincial economies to the federal level, generating a
negative
cost-benefit ratio
for the provinces
. In addition, only
20% of
the tax
produced
would go exclusively to expenses related to the
pandemic
. "
Another of the negative effects of the project has to do with the assets destined for production and
their effect on employment.
"It will not affect only the" great fortunes ", as it is intended to be believed, since this tax is levied on assets that
are also affected by production
, without taking into account, in addition, the existence of
debts
generated for their incorporation into the patrimony "says the statement.
"Finally,
it directly affects job creation
and forces those who must pay the tax to
sell part of their assets
in order to face it."
"The country needs everyone's effort, including the public sector, which, until now,
has not shown any resizing or rationalization measures
, as the private sector has had to do," the business entity said.
"The tax pressure in Argentina is already
one of the highest in the world
and the creation of new taxes to finance growing public spending at the three levels of the State
will not allow us to get out of the prolonged recession
in which we have been immersed for some time. To think that tax increases have no limits or consequences on investment and economic activity is to ignore the most elementary laws of the economy. "
The Forum's statement ends with a claim that the project be withdrawn.
"We call on the National Congress to withdraw the discussion of this
bad tax
and summon the various social organizations to a table where they can discuss state policies that allow us to get out of this difficult situation all together."