Argentina Political Economics

Argentina

[pic 2][pic 3]

Political Economics

Argentina benefits from rich natural resources, a highly literate population, an export-oriented agricultural sector, and a diversified industrial base. Although one of the world's wealthiest countries 100 years ago, Argentina suffered during most of the 20th century from recurring economic crises, persistent fiscal and current account deficits, high inflation, mounting external debt, and capital flight. In 2016, the World Bank downgraded Argentina from a high-income to upper-middle-income economy, on par with Columbia.

With the election of President Mauricio MACRI in November 2015, Argentina began a historic political and economic transformation, as his administration took steps to liberalize the Argentine economy, lifting capital controls, floating the peso, removing export controls on some commodities, cutting some energy subsidies, and reforming the country’s official statistics. Argentina negotiated debt payments with holdout bond creditors and returned to international capital markets in April 2016. In September 2016, Argentina completed its first IMF Article IV Consultation since 2006.

Taxes

Income Tax: Levied on a sliding scale from 9% to 21%. Non-residents pay a withholding tax of 21% on Argentine-sourced income only.

Sales Tax: Standard IVA (VAT) is 21%. A higher rate of 27% is levied on certain utilities. Private health insurance, newspapers, and cable television are taxed at 10.5%.

Transfer Tax: 1.5%. This does not apply to a resident selling his main dwelling if he commits to buying another property within 12 months.

Capital Gains: Depending on your situation, regular income tax may apply on income earned from the sale of property.

Rental Income Tax: Treated as part of your regular taxable income. Levied at 35% for residents and 21% for nonresidents on the gross annual rent.

Property Tax: Income earned from renting your property is treated as regular income tax. Outside of Buenos Aires (which is exempt), rates vary by province and are applied to the assessed value of the property.

Government

Presidential republic

Political System:

The Constitution of 1853 established a representative, republican system of government

and federal, which has been maintained by all the constitutional reforms carried out since then.

Argentina was formed by the federative union of the provinces that emerged after the dissolution of the Viceroyalty of the Río de la Plata and by the incorporation of those that they were constituting from the National Territories.

The provinces are autonomous, which is made explicit in article 121 of the

National Constitution:

The provinces retain all power not delegated by this Constitution to the Government federal government, and the one that has been expressly reserved for special events at the time of its incorporation.

The current Constitution is the one that results from the text established by the

Constituent Convention of 1994.

Economic System:

Besides being first one of the tourist destinations of the world, one can affirm that France in a power to economic level recognized throughout the world.

It possesses an economy of service that takes a notable advantage to him to other sectors since it is those of agriculture, fishing and industry.

Today it occupies the sixth place in the world economy being behind countries like The United States, Japan, Germany, China and Great Britain, but only place comes to 16 º worldwide when one speaks about the GDP for inhabitant.

His currency is the Euro adopted as single currency in the year 2002 and despite some economic sways in France it can be said the cost of the life that it is reasonable.

With a relatively high rate of unemployment, France continues being a rich country and it has managed to diminish his rate of poverty in the last years.

In France, the government plays a very important paper in the economy, since the market lacks regulations.

Legal System:

The executive power is an exercise simultaneously for the president of the Republic and for the prime minister, or as Hariou and Ceicquel would say, the executive French power is one diarquía4. Later we will study the power that each one has, as well as those that they exercise simultaneously.

...