Bases Law: Deputies vote again this Thursday and the Government would have guaranteed Earnings and Personal Assets

The ruling party secured a narrow majority on Wednesday to be able to approve the restitution of the Income Tax and the reforms of Personal Assets. These measures, which were rejected by the Senate, are contemplated in the bill of the fiscal package that will be discussed this Thursday from 12 noon in a special session in the Chamber of Deputies together with the Bases Law.According to the NA news agency, until Wednesday afternoon, La Libertad Avanza was guaranteed between 129 and 134 votes: 37 from the ruling party; 36 from the PRO; between 22 and 26 from the UCR; 12 from Hacemos Coalición Federal; 2 from Buenos Libre; 3 from the MID; 3 from the Independence Block; 1 from Creo; 7 from Federal Innovation; 2 from Production and Labor, and 4 from the Civic Coalition. In addition, four Catamarcans who answer to the governor of Catamarca, Raúl Jalil, could be added, including deputies Sebastián Noblega, Fernanda Avila, Silvana Ginocchio, and Dante López Rodríguez.On the other hand, the opposition bench could reach a maximum of 115 votes, with 95 legislators from Unión por la Patria, 5 from the left, 8 radicals, 4 from Hacemos Coalición Federal, 2 Santa Cruz residents, and one from Federal Innovation, against the restitution of Profits.Changes in the SenateThe Senate approved the Fiscal Package with changes, including reforms in money laundering and monotax. However, it rejected by a simple majority the replacement of Earnings and the modifications of Personal Assets.Majority opinionThe ruling party and the dialoguist blocs issued a majority opinion on Tuesday accepting the changes in the monotax and in money laundering. In addition, they decided to insist with a simple majority on the replacement of profits and reforms in the Personal Assets Tax. The Government and most of the provincial governors, with the exception of Kirchnerism, requested to reinstate this tax, which will be applied to employees with gross salaries of 1,800,000 pesos for singles and 2.3 million for married people. The tax scale varies between 9% and 35%, with the cap applying only to salaries above 36%. In addition, deductions were replaced for spouse and children, staff of private homes, medical expenses, and life insurance, excluding overtime, Christmas bonus, productivity bonuses, and the differential for workers in Patagonia.Another key point is the ratification of the DNU that exempts salaries equivalent to 15 minimum wages between October 1 and December 31 from the tax. This measure needs to be adopted by law to avoid undue discounts to workers. Fiscal impactThe fiscal impact of the project sanctioned in September 2023 was estimated at 0.83% of GDP (almost 3 trillion pesos). In the project designed by the Government for 2024, on the other hand, it was estimated that it reduces the fiscal impact of the income tax by 0.5 of GDP and in the text approved by Deputies, by 0.43 of GDP, according to the Budget Office of the National Congress.With respect to the changes in Personal Assets, the ruling party is guaranteed more than 137 votes to insist on the reforms contemplated in the version that came out of the Lower House. This reform increases the Non-Taxable Minimum to 100 million pesos and reduces rates to an aliquot of between 0.5% and 1.5%, when today it is at 1.75%. It also allows you to pay the tax in advance with a special rate of 0.45% per year

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