Argentine President Javier Milei decreed the cessation of discretionary transfers of funds from the Nation to the provinces. This put them in financial jeopardy due to their lack of initiative to reduce their public spending.

To compensate for the drop in transfers, municipalities and provinces went out to increase rates and taxes on taxpayers who already pay. The vicious practice of many provincial and municipal tax administrations, directed by their governor or mayor, is contrary to all logic, writes Juan Carlos Gómez-González.