Argentina has approved the ruling right-wing government's damning tax reform as part of the national budget for the fiscal year 2018, which is meant to benefit corporations.
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Senator Cristina Fernández de Kirchner voted against Macri's tax plan, which was approved after ten hours of deliberation, with 54 voting in favor, 14 against, and one abstention.
"We are underfunding the Anses (National Social Security Administration) in favor of entrepreneurs," Fernandez complained during the session.
Macri's tax plan aims to gradually reduce the corporate tax rate to 25 percent from 35 percent over five years. The finance minister, Nicolas Dujovne, said, the tax reform will have no impact on the treasury over the course of five years of its implementation, meant to favor corporations.
The right-wing president is a proponent of free-market reforms, which are bound to affect state agencies, including thousands of layoffs of state workers, the removal of taxes levied to protect the local industry, and hikes in utility prices.
Last week Congress approved Macri’s pension reform plan, sparking violent protests outside Congress, with labor unions calling for a 24-hour general strike accusing the president of cutting benefits to already-struggling pensioners while lowering corporate income taxes.
The current budget projection aims to cut Argentina’s fiscal deficit to 3.2 percent of the gross domestic product by the end of 2018 from 4.2 percent currently, Reuters reported, with an average inflation rate of 15.7 percent.