Milei kept his promise to cut taxes. The problem is he might have gone too far - Buenos Aires Herald

During the campaign trial for the 2023 presidential elections, Javier Milei made cutting taxes, together with lowering inflation, one of his key electoral promises. On more than one occasion, he even called taxes a “robbery” the state inflicts on its citizens.

For the most part, he has kept that promise.

A recent survey by research center Argentine Center for Fiscal Analysis (in Spanish, IARAF) estimated that Milei has cut the equivalent of 3% of GDP in tax revenue since taking office in December 2023.

The three taxes that have been cut the most are the so-called PAÍS Tax, export taxes, and the personal property tax.

While tax cuts have been the libertarian government’s primary tool for maintaining fiscal balance from day one, the current situation poses a potential problem.