Argentina's tax reforms widen burden on low‑income families

A recent study by the civil association Inteligencia Colaborativa para el Desarrollo shows that provincial and municipal taxes in the Province of Buenos Aires, especially in the western suburbs, consume a growing share of household income. Families in the densely populated outskirts face combined pressures from property taxes, vehicle registrations, income taxes and numerous local fees, which together limit consumption and savings.

National tax policies under President Javier Milei are also shifting the fiscal load. Data from the Instituto Argentina Grande indicate that the richest 10 % of earners now pay only about a quarter of their income in taxes, while the poorest half devote more than one‑third of their earnings to tax payments. Cuts to wealth taxes, lower export duties and other incentives for large investors have reduced the share of personal‑wealth taxes from 7.2 % to 1.5 % of total revenue, increasing reliance on consumption taxes such as VAT, which hit lower‑income households hardest. The combined effect is a more regressive tax system that deepens the financial strain on many Argentine families.