Argentina to End Income Tax as Election Spending Spurs Inflation

Argentina’s congress approved a bill that will eliminate income taxes for almost all formal workers, a measure poised to put more pressure on a ballooning fiscal deficit that’s underpinning 124% inflation before October’s presidential elections.

By a 38-27 vote, the Senate approved the legislation late Thursday advocated by Economy Minister and presidential candidate Sergio Massa, whose coalition placed third in the August primary vote. President Alberto Fernandez is expected to sign it into law. Argentines cast their ballots Oct. 22.

Sergio Massa

Photographer: Nathan Howard/Bloomberg

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While Massa had already temporarily exempted ...