<p>According to this article, (spanish only)</p>
<p><a href="https://www.ambito.com/opiniones/impuestos/las-empresas-argentinas-invierten-312-horas-al-ano-pagar-n5108876#:%7E:text=Mundial%20(BM).-,Las%20empresas%20argentinas%20pagan%20en%20impuestos%20un%20106%25%20por%20sobre,inclusive%20con%20su%20inversi%C3%B3n%20inicial." rel="nofollow noreferrer">Argentine companies pay 106% of taxes for their revenues</a></p>
<p>Supposedly the Laffer curve is different from country to country.  Which are the tax rate values at which you get the maximum tax revenue for Argentina? Also, is this curve supposedly to be applied to the overall taxes paid by a company, or for the taxes over a particular manufactured product?</p>

CC BY-SA 4.0
2020-11-19T14:16:29.267Z
I don’t know data on laffer curve for Argentina- but usually its peak turns out to be when taxation is around 70-80%. Also, any tax rate above 100% cannot be optimal but I have serious doubts that is even the case - if it is above 100% of revenue why do the firms even exist? That means that for every single product company makes it has to give all revenue (which does not include cost as revenue is just price times quantity) to the gov and then on top of giving all revenue to the gov the firm must even pay something extra - how can firms exist in such case? Surely that must be a mistake
1muflon1
CC BY-SA 4.0
2020-11-19T14:21:57.460Z
I suppose it's an average, the article says the companies need an inmediate reduction to survive.
Pablo
CC BY-SA 4.0
2020-11-19T14:23:02.337Z
Also, thousands of companies went bankrupt in the last years. Not a surprise I guess. I remember in 2016 , 5000 companies disappeared in 3 months.
Pablo
CC BY-SA 4.0
2020-11-19T14:25:13.243Z
that still sounds unbelievable to me. 1. Are you sure it is revenue and not profit? 2. Is this due to some recent hike or what? Even if it would be tax on profit it is impossible for firms to exist in long run if they have to pay government literary more than they get from their customers after taking into account cost. This makes me very skeptical and suspicious about there being some mistake - maybe it would be good idea to verify this info from some reputable international organization
1muflon1
CC BY-SA 4.0
2020-11-19T14:32:51.157Z
I found [this](https://www2.deloitte.com/content/dam/Deloitte/global/Documents/Tax/dttl-tax-argentinahighlights-2020.pdf) report on corporate and income taxes in Argentina from Deloitte and none of the taxes mentioned there exceed 100% there must be something more to that statistics that your question does not mentioned or otherwise the source you cite makes some mistake
1muflon1
CC BY-SA 4.0
2020-11-19T14:41:20.260Z
Also, I forgot to mention, there's a lot of evasion (illegal commerce). So in the end, they don't pay those 106%
Pablo
CC BY-SA 4.0
2020-11-19T14:42:33.450Z
that would be explanation why they exist but still given that Deloitte report I found I don’t get how that website arrived at the value 106% does that website mentions any sources?
1muflon1
CC BY-SA 4.0
2020-11-19T14:44:36.863Z
They mention an analysis by the foundation "Liberty and Progress" (Libertad y Progreso) made with data of the World Bank
Pablo
CC BY-SA 4.0
2020-11-19T14:48:10.097Z
hmm I would really want to see that analysis because you cannot just add two different tax rates let’s say VAT 20% and income tax 30% and say that is 50% taxation... this to me looks like they were just adding some corporate taxes together otherwise I can’t explain how they would arrive at such tax rate given what I saw in that Deloitte report... that number just seems very fishy, is that liberty and progress foundation reputable? Are they known for some ideological biases that would make them want exaggerate extent of taxation in Argentina?
1muflon1
CC BY-SA 4.0
2020-11-19T14:48:42.597Z
By "revenues" you mean "profits"?
Alecos Papadopoulos
CC BY-SA 4.0
2020-11-19T14:50:43.823Z
@AlecosPapadopoulos I asked the same question above
1muflon1
CC BY-SA 4.0
2020-11-19T18:07:11.057Z
I believe the article is talking about profit only, not revenue. Moreover, I think they have just added various taxes, which the companies have to pay, and just expressed it as a percentage of the profit.
Sahaj
CC BY-SA 4.0
2020-11-19T21:16:47.927Z
@1muflon1 Without doing any research whatsoever, I can guarantee you that a source called "liberty and progress foundation" is ideologically biased (or "ideologically possessed") and not reliable in the slightest.
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<macroeconomics><mathematical-economics>
What are the values of the Laffer curve for Argentina?
Pablo
# What are the values of the Laffer curve for Argentina?

(Asked by: username_0 on 2020-11-19)

According to this article, (spanish only)

[Argentine companies pay 106% of taxes for their revenues](https://www.ambito.com/opiniones/impuestos/las-empresas-argentinas-invierten-312-horas-al-ano-pagar-n5108876#:%7E:text=Mundial%20(BM).-,Las%20empresas%20argentinas%20pagan%20en%20impuestos%20un%20106%25%20por%20sobre,inclusive%20con%20su%20inversi%C3%B3n%20inicial.)

Supposedly the Laffer curve is different from country to country. Which are the tax rate values at which you get the maximum tax revenue for Argentina? Also, is this curve supposedly to be applied to the overall taxes paid by a company, or for the taxes over a particular manufactured product?

**Tags:** macroeconomics, mathematical-economics

> **Comments:**
> **username_1**: I don’t know data on laffer curve for Argentina- but usually its peak turns out to be when taxation is around 70-80%. Also, any tax rate above 100% cannot be optimal but I have serious doubts that is even the case - if it is above 100% of revenue why do the firms even exist? That means that for every single product company makes it has to give all revenue (which does not include cost as revenue is just price times quantity) to the gov and then on top of giving all revenue to the gov the firm must even pay something extra - how can firms exist in such case? Surely that must be a mistake  
> **username_0**: I suppose it's an average, the article says the companies need an inmediate reduction to survive.  
> **username_0**: Also, thousands of companies went bankrupt in the last years. Not a surprise I guess. I remember in 2016 , 5000 companies disappeared in 3 months.  
> **username_1**: that still sounds unbelievable to me. 1. Are you sure it is revenue and not profit? 2. Is this due to some recent hike or what? Even if it would be tax on profit it is impossible for firms to exist in long run if they have to pay government literary more than they get from their customers after taking into account cost. This makes me very skeptical and suspicious about there being some mistake - maybe it would be good idea to verify this info from some reputable international organization  
> **username_1**: I found [this](https://www2.deloitte.com/content/dam/Deloitte/global/Documents/Tax/dttl-tax-argentinahighlights-2020.pdf) report on corporate and income taxes in Argentina from Deloitte and none of the taxes mentioned there exceed 100% there must be something more to that statistics that your question does not mentioned or otherwise the source you cite makes some mistake  
> **username_0**: Also, I forgot to mention, there's a lot of evasion (illegal commerce). So in the end, they don't pay those 106%  
> **username_1**: that would be explanation why they exist but still given that Deloitte report I found I don’t get how that website arrived at the value 106% does that website mentions any sources?  
> **username_0**: They mention an analysis by the foundation "Liberty and Progress" (Libertad y Progreso) made with data of the World Bank  
> **username_1**: hmm I would really want to see that analysis because you cannot just add two different tax rates let’s say VAT 20% and income tax 30% and say that is 50% taxation... this to me looks like they were just adding some corporate taxes together otherwise I can’t explain how they would arrive at such tax rate given what I saw in that Deloitte report... that number just seems very fishy, is that liberty and progress foundation reputable? Are they known for some ideological biases that would make them want exaggerate extent of taxation in Argentina?  
> **username_2**: By "revenues" you mean "profits"?  
> **username_1**: @AlecosPapadopoulos I asked the same question above  
> **username_3**: I believe the article is talking about profit only, not revenue. Moreover, I think they have just added various taxes, which the companies have to pay, and just expressed it as a percentage of the profit.  
> **username_4**: @username_1 Without doing any research whatsoever, I can guarantee you that a source called "liberty and progress foundation" is ideologically biased (or "ideologically possessed") and not reliable in the slightest.  

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## 0 answers

