Argentina's Milei Announces 90% Tax Cut, Closure of Central Bank, Achieves Fiscal Surplus

Dec 11, 2024, 12:16 PM

Argentine President Javier Milei marked his first year in office by announcing significant economic reforms aimed at revitalizing the country's economy. He declared that the recession has ended and revealed plans to reduce national taxes by 90% in 2025, simplify the tax system, eliminate capital controls, and close the Central Bank. Milei proposed a system where provinces compete on local tax rates and emphasized the achievement of a fiscal surplus for the first time in 123 years, attributing it to strict austerity measures, including reducing public employment. He stated, "We will not stop until we become the freest country in the world" and stressed that "public order is sacred." Economic forecasts from Bloomberg Economics predict Argentina will be one of the fastest-growing economies in 2025, offsetting the previous slump.