Milei kept his promise to cut taxes. The problem is he might have gone too far

Argentine President Javier Milei has largely followed through on his campaign promise to reduce taxes, cutting revenue by an estimated three percent of GDP since December twenty twenty-three. As the Buenos Aires Herald reports, the largest losses came from the expiration of the PAIS tax on foreign currency, as well as declines in export and personal property taxes. However, the government has offset some of these losses by increasing fuel and income taxes. Analysts warn that a lack of economic growth could lead to an austerity trap, where falling revenues force deeper spending cuts that further slow the economy.

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