Why co-participation is unfair and impoverishes Argentines

INFOBAE – The National Constitution declares the equality of the inhabitants before the law. Equality in taxes and public charges is also established in Article 16, but it has become a dead letter, because neither Congress nor the Judiciary enforce it.

The Federal Coparticipation distributes taxes incredibly unevenly. The average Buenos Aires resident received half of the funds in 2018 than the national average. The province thus suffered a loss of $ 207,000 million at that time (USD 7,393 million).

Precisely, the province with the highest number of poor people is the one most affected by the Coparticipation Law, while the rulers proclaim their objective of reducing social inequality and poverty. The poor should ask.

For its part, the CABA received 40% less than the national average, in 2018; a loss of $ 20,800 million (USD 743 million), $ 7,000 from that year, for the average porteño.

The following table summarizes the percentage relationship of the collection of own taxes and the co-participates; the amount shared per inhabitant; and the sums received, or transferred, by each province, with respect to an equitable criterion, according to the Ministry of Finance, in 2018 pesos. Provinces such as Tierra del Fuego, Catamarca and Formosa have been the most favored by the criteria applied for the distribution

Provinces such as Tierra del Fuego, Catamarca and Formosa have been the most favored by the criteria applied for the distribution. Its inhabitants received many times the average $ 27,200 that the group of jurisdictions received for each of its inhabitants. Https://e.infogram.com/d0f36dc2-8e10-42aa-b088-f2927fe19b54? Src = embed

The same measure, the same criterion for all people is the ideal of justice, stability and progress. Fair rules are stable and effective. This measurement reiterates that the Argentine delay is a consequence of the injustice of unequal standards.

Incentives

The second column of the table shows the weights of the province’s own collection with respect to the co-participated, in percentage. While the province of Buenos Aires raised $ 127 for every $ 100 it automatically received from the central government, Formosa generated just $ 8. Most jurisdictions collect much less than $ 50 for every $ 100 it obtains from money orders from the Nation. The province of Buenos Aires collected $ 127 for every $ 100 it received automatically from the central government, Formosa generated just 8 pesos

In this way, these provinces could lose interest in the progress of private businesses. They would function as delegations of the national government, a simulation of federal principles. Situation that encourages each provincial government to control the actions of individuals to support the local government, rather than to develop the welfare of the population.

The idea that low taxes encourage business would be belied by these data. National taxes tax activities in the same way throughout the country, while the lagging provinces collect less tax. That is, the lower the taxes, the greater the delay The efficiency of a society in satisfying needs incorporates both taxes and the quality of spending, but the most favored provinces are the ones that least contribute to boosting the economy (Presidency) The efficiency of a society in Meeting needs incorporates both taxes and the quality of spending, but the most favored provinces are the ones that least contribute to boosting the economy (Presidency)

The efficiency of a society in satisfying needs incorporates both taxes and the quality of spending, but the most favored provinces are those that least contribute to boosting the economy, since they are not interested, because they have assured resources. Meanwhile, the national authorities are favored by this dependence, because they can agree on new financial contributions in exchange for votes in Congress and in the administration of justice.

Hence, Argentina’s tax sharing system has become particularly damaging. No nation prospers with that mechanism that clouds the purposes of individuals and impoverishes without remedy No nation prospers with that mechanism that clouds the purposes of individuals and impoverishes without remedy

The Autonomous City of Buenos Aires collects three times more than what it receives from co-participation; while Formosa, Catamarca, La Rioja, Santiago del Estero collect around 10%. Their governments play to govern, they only have to administer an appearance of State, unconcerned of favoring valuable productions. A heavy burden for Argentines who need to progress.