Cushion Law: LLA has support but fears a K offensive

Until the legal framework for the government's announcement is in place, the scope of incentives aimed at spending or investing dollars saved in accounts or bills will be limited.

In addition to the relaxation of limits and controls that the ARCA will implement, the most important chapter of the "Historic Reparation for Argentine Savings" lies in the bills that the Executive Branch will submit to reform the Penal Tax Law and the Tax Procedure Law. Despite the magnitude of this initiative, led by Economy Minister Luis "Toto" Caputo, Central Bank President Santiago Bausili, and former AFIP head Juan Pazo, the ruling party is reluctant to decide whether it will do so soon or after the legislative elections on October 26. The legislative front that will be created will focus on both. The battle will be in the House of Representatives, as it is the original chamber for fiscal matters.

This reform is the biggest obstacle to the optimism the government placed on the announcement, because a possible failure or delay could expose them.

This is a campaign measure that frees up the use of undeclared US dollars, but it requires legal changes so that savers who use the dollars later don't face problems filing income tax returns when they have to justify their wealth growth, such as the purchase of a car or a property. This is just one of the questions.

The criticisms mounting in the House of Representatives regarding the lack of controls to prevent money laundering will also be included in the debate. When the Executive Branch presents the two bills, the next step will depend on the Speaker of the House, Martín Menem, who will have to decide the routing, that is, how many committees the bill will be sent to. Two committees are looming as unavoidable: the Budget and Finance Committee, chaired by José Luis Espert of the La Libertad Avanza party, and the Criminal Law Committee, chaired by Laura Rodríguez Machado of the PRO party and very close to Security Minister Patricia Bullrich. The ruling party could secure the signatures for a majority opinion in both committees, but everything will depend on timing.

This Friday, Espert only dared to answer on Radio Rivadavia that it will be discussed "this year" and that they are drafting it.

Since last Sunday, with the victory of the LLA and the defeat of the PRO in the Buenos Aires elections, the ruling party has been determined to capitalize on the impact. Last Wednesday, it scored another dividend with the cancellation, due to a lack of quorum, of the session convened by the opposition to discuss a new pension moratorium and the 70,000-peso bonus increase, among a range of eleven resolutions.

The Union for the Homeland, Federal Encounter, Democracy Forever, and the FIT blocs gathered 124 votes, falling five short of the necessary 129.

The role of the PRO and the UCR in aiding the ruling party was felt again despite the Sunday defeat faced by the former Juntos por el Cambio partners in the city. A declaration of emergency due to the storm in northern Buenos Aires was woven into the mix, but the greatest tension lay in the debate over the election of authorities for the investigative commission into the Libra cryptocurrency case, stalled by a tie of fourteen in favor of Gabriel Bornoroni (LLA) as head and another fourteen supporting Sabrina Selva of the UxP (UxP). Menem refused to include the tiebreaker on the agenda, citing regulatory arguments, but the pressure this crucial difference entails will explode in the next session.

Those around Menem believe they have the votes to achieve the partial approval. They say this, emboldened by the operation launched by the Rosada (Presidential House) to overthrow Wednesday's session. There were talks with Macri, Radical, and Peronist governors. "The problem isn't gathering the votes for these reforms, but opening the chamber," lamented a prominent LLA legislator. They were reassured by the PRO's support to avoid the latest opposition offensive.

The next election will be held in 15 days and will continue to represent an unusual challenge for Congress in an election year. The government's push for economic and tax measures aimed at influencing the campaign opened another chapter, but the opposition will seek to impose its agenda, which will also have an impact as the elections approach.

Claim to Venezuela

The Foreign Ministry, headed by Gerardo Werthein, called for an end to the situation of Argentine citizens detained in Venezuela.

"The Argentine Republic expresses its firmest and categorical condemnation of the systematic process of arbitrary detentions, forced disappearances, and widespread human rights violations in the Bolivarian Republic of Venezuela," begins the statement from the San Martín Palace.

And "expresses its deep concern over the arbitrary detention of Argentine citizens and demands the immediate release of Gendarme Nahuel Gallo."

In this way, the Argentine government protested despite the recent release of an Argentine citizen linked to a cybersecurity company.