It was Benjamin Franklin that said, “in this world, nothing is certain except death and taxes.” However, this may be changing. Argentina’s Senate has approved legislation to eliminate income taxes for the majority of formal-sector workers. Only those earning more than $5,000 per month (roughly 1% of payroll workers) will be required to pay income tax in the future. While this appears to be a good idea, the devil is always in the details. Argentina’s decision to abolish income tax is primarily political, occurring just before presidential elections. Sergio Massa, the Finance Minister who instituted this policy, is running for president and hopes that this gesture will help him.
The move could help Sergio Massa’s presidential campaign, but it could also cost him in the long run. A country requires money to function, and a country is primarily funded by taxation of its citizens. If Argentina abolishes income taxes, it will create a $5.7 billion shortfall, introducing a new problem. Other countries, such as the United Arab Emirates (UAE), do not have income taxes because their oil industry pays for everything. Because of its thriving tourism industry, the Bahamas has no income taxes as well. Argentina lacks any revenue source that could compensate for taxing its citizens.
At the end of the day, Argentina’s entire plan to abolish income taxes is just politicians being politicians. It is not a sound technical strategy for creating abundance. Proverbs 21:5 (ESV) states, “The plans of the diligent lead surely to abundance, but everyone who is hasty comes only to poverty.” Rather than focusing on quick fixes, we must prioritize long-term solutions to eradicate poverty. For reality doesn’t bow to political ambitions; it rewards wisdom and diligence. True empowerment arises from increasing productivity, not from political maneuvers. In your own mission to watch over your world, you must be practical and clear about how you intend to fund your vision in a sustainable and empowering way.
