What do Argentines prefer to stop paying ?: debt ranking


Total family debt reached $ 1,905,119 million and affected 11.9 million households, equivalent to 86.5% of the total country

The indebtedness stock of Argentine families grew 4.6% in June, pushed by “non-bank” debts, which increased 16.1%, so that almost nine out of ten families finished the month with commitments of pending payment, according to a report prepared by the Center for Regional and Experimental Economics (CERX).

Total family debt reached $ 1,905,119 million and affected 11.9 million households, equivalent to 86.5% of the country’s households, some 163,000 fewer households than in May, although debt grew by $ 83,415 million for those who could not cancel their liabilities.

According to the report, although bank debts fell 1.6% in June to $ 1,168,217 million as a result of the fall in pledge loans (-5.8%) and credit cards (-2%), Non-bank debt increased 16.1% compared to May and reached $ 736,902 million, mainly due to the delay in paying taxes (+ 24%) and services (+ 15.5%).

What do Argentines stop paying?

“Most frequent in June, arrears continued to be taxes, which accumulated debts for $ 185,040 million, 24% more than in May.

Families continued to stop paying taxes like the real estate, patents, and others national and municipal“indicated the document of the consultant that directs the economist Victoria Giarrizo.

On the other hand, the report indicates that although the debt with “grew little (+ 1.4%)relatives and friends“Yes, debts with” (12.6%) increased very strongly “lenders“, something that worries about its high cost and risk.

“On average each family owed in June $ 159,738, 6% more than in May, “said the report.

Families continued to stop paying taxes such as real estate, patents, and other national and municipal taxes.

Another of the highlights from June is the increase in household fear of losing income or employment, which, for 44.9% of people, is “very high” and that, when the quarantine ends, if They recover the income 61.8% of the households will use them to pay off liabilities.

“As more activities are released, it is expected that families will regularize their non-bank debts. But this process will be very slow and will be combined with increases in the debt stock. of those who lost income or employment and are not yet recovering, “CERX analyzed.

In this sense, they pointed out that the burden of debt on families will be “one of the great limitations to recover consumption, even when income begins to gain ground”, since “debts will be canceled first and then there will be consumption.”

The information collected by CERX arises from the crossing of data from the Central Bank of the Argentine Republic (BCRA) with a survey of 6,770 households between June 22 and 25.

The “tax free day” starts

Years go by and the stage is always the same. Beyond a brief period that began in 2016, the pockets of Argentines have been supporting a sustained increase of the tax pressure.

This is demonstrated when analyzing the evolution of the indicator named “tax free dayIn other words, the index reflects until what day employees must work to pay off all the taxes they have to bear in the year.

For this 2020, a taxpayer, on average, you must work more than half a year to be able to pay all taxes.

The calculation of “Tax independence day” is carried out by the Argentine Institute of Fiscal Analysis (IARAF), directed by Nadin Argañaraz, for a decade.

According to the report corresponding to 2020, from January 1 a citizen begins to work “for the State” (that is, he allocates his income to pay all taxes that economically affect his income) and after the term determined by the indicator, begins to earn income for himself. This is obviously an indicative result.

According to the analysis of the IARAF, a formal salaried worker in Argentina should work in 2020 between 181 and 214 days to meet the tax obligations of the three levels of government, depending on their income.

What does this imply? That he “Tax Independence Day ” in Argentina the June 28th and it extends to August 1, depending on what the income is. If the current situation is compared with that of last year, an increase in the tax burden is observed in four cases considered.

The “Tax Independence Day” in Argentina starts on June 28 and extends to August 1

For Case 1, the lowest level of income exemplified, which is not reached by either the income tax or the personal property tax (or the PAIS tax in 2020), the “Tax Independence Day” has remained relatively stable throughout the decade.

For their part, Cases 2 to 4 will take more days in 2020 to achieve their tax independence compared to last year, according to Clarín. The cases always consist of a household made up of four members (marriage plus two children) and items such as rent, car and different levels of savings are included.

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