The article examines the possibility of the Argentine government continuing to lower taxes this year, especially in light of its goal to achieve a primary fiscal surplus of 1.5% of GDP. Economists explore whether the economic growth required to sustain such tax reductions is realistic. There is a consensus among economists that while tax cuts could be beneficial, they need to be part of a broader economic strategy.

The backdrop of this discussion is the ongoing efforts in Congress, where the government is trying to pass labor modernization legislation. The businesses sector has been vocal about the need for tax reductions across all levels of government—national, provincial, and municipal—as a prerequisite for enhancing competitiveness. They argue that tax relief could stimulate economic activity, leading to increased investment and, ultimately, job creation.

Economists stress the importance of balancing tax policies with fiscal responsibility, suggesting that while tax reductions could spur growth, they must be carefully calibrated to avoid undermining the overall fiscal health of the country. The debate encapsulates the ongoing struggle in Argentina between promoting economic growth through tax incentives and maintaining fiscal discipline amid challenging economic conditions.