Milei Proposes 90% Tax Reduction for 2025

Argentine President Javier Milei announced a sweeping tax reform plan that aims to eliminate 90% of the nation's taxes by 2025, a move intended to simplify the tax structure and stimulate economic growth. This ambitious proposal would reduce the number of national taxes from 167 to fewer than 20, focusing on key taxes like VAT and income tax, while dropping export taxes that hinder agricultural exports. However, Milei's announcement has sparked debate, with some economists questioning the feasibility and potential fiscal deficits this could create. Federico Sturzenegger, Minister of Transformation, clarified that the goal is to simplify rather than quantitatively reduce the tax burden, indicating that actual spending cuts would be necessary to achieve a true 90% reduction. Critics express concern that such drastic changes could destabilize public services and social welfare programs. Supporters, however, believe that these reforms could attract foreign investment and spur economic activity.