{"id":14154,"date":"2024-02-05T12:52:43","date_gmt":"2024-02-05T15:52:43","guid":{"rendered":"http:\/\/fund.ar\/publicacion\/towards-a-harmonious-federal-tax-system\/"},"modified":"2024-12-12T13:32:57","modified_gmt":"2024-12-12T16:32:57","slug":"towards-a-harmonious-federal-tax-system","status":"publish","type":"publicacion","link":"https:\/\/fund.ar\/en\/publicacion\/towards-a-harmonious-federal-tax-system\/","title":{"rendered":"Towards a harmonious federal tax system"},"content":{"rendered":"\t\t
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The current tax system is the result of partial modifications accumulated over the years and of the responses of the various governments to the increase in public spending. Thinking about a comprehensive, harmonious and federal reform of the tax system requires an analysis of the structural problems of the current system. It requires a systemic vision that looks not only at taxes in isolation but also evaluates them as a whole. And one that considers who pays and to what extent they are paid and collected.<\/strong><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Illustration: Natalia Aguerre<\/a>.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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A comprehensive reform of the tax system is needed<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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The context of macroeconomic instability and low fiscal predictability led to the introduction of emergency taxes that were consolidated over time. High evasion and informality led governments to favour taxes that were easy to collect.<\/span><\/p>\n

Although they can be implemented sequentially, it is essential to undertake a comprehensive reform that considers not only the total amount collected but also the composition, administration and coordination between the different levels of government.<\/span><\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Objectives of the tax system<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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What roles can the tax system play?<\/h4>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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To finance public spending<\/strong>. Sufficient revenue collection means that spending does not depend on debt financing or monetary issuance by the Central Bank.<\/span><\/p>\n

Contribute to the distribution of wealth to achieve a more integrated and equitable society<\/strong>. To this end, it is necessary to define how the tax burden is distributed, taking into account horizontal equity (between taxpayers of equal income) and vertical equity (the greater the ability to pay, the greater the contribution).<\/span><\/p>\n

To generate the least possible brakes to economic development<\/strong>, by reducing the distortion of the system and treating similar activities in the same way.<\/span><\/p>\n

Facilitate collection by the State <\/strong>and compliance by taxpayers and thus minimize evasion and avoidance.<\/span><\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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What role should the Argentine tax system play?<\/h4>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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Although from a conceptual point of view, the tax system can fulfil several objectives, the Argentine experience leads us to think that it is necessary to prioritize the role of financing the public budget to contribute to stabilizing the macro-economy and promoting development. In this sense, it does not propose changes in the level (the amount to be collected), expressed on the expenditure side and therefore decided by citizens through their representatives, but concentrates on the composition (what kind of taxes) and administration (who collects) of the tax structure.<\/span><\/p>\n

Inflation and informality significantly influence the tax system, and the tax system influences them. An example of this is that a high tax burden with high compliance costs on the taxpayer generates informality, while informality generates more pressure on the formal segment of the economy. In this sense, the proposal also seeks to discourage informality in the economy.<\/span><\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Review the structure of the tax system<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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What types of taxes exist?<\/h4>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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Taxes can be grouped into 4 broad categories:<\/span><\/p>

  • on income and capital gains<\/b>;<\/span><\/li>
  • on property<\/b> (a house, a company, stocks and bonds, etc.);<\/span><\/li>
  • on goods or services <\/b>(transactions, including cheque tax, VAT, those levied on international trade such as imports, gross income, etc.);<\/span><\/li>
  • social security contributions <\/b>(such as pensions and social security).<\/span><\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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    What types of taxes prevailing in Argentina?<\/h4>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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