Argentina’s President Javier Milei has announced plans to reform the country’s tax system, reducing the number of taxes to no more than six. Speaking in an interview published Sunday, Milei said: “We’ll advance privatization, deepen labor reforms, and eliminate 90% of taxes — not revenue, but the number of taxes — moving to a simplified system with no more than six taxes at most.”
The proposal marks another bold move from the firebrand president, whose economic policies have gained international attention, including from members of the incoming Trump administration.
Since assuming office on December 10, 2023, Milei has implemented dramatic reforms. His administration has cut tens of thousands of public sector jobs, halved the country’s ministries from 18 to 9, and slashed state spending by 31% in just 10 months. Milei has described his approach as taking a “chainsaw” to government bureaucracy.
Milei’s actions have impressed high-profile figures such as Elon Musk and Vivek Ramaswamy, who are tasked with enacting similar reforms under President Trump. Musk recently praised Argentina’s progress as “impressive,” while Ramaswamy suggested the U.S. needs “Milei-style cuts on steroids.”
In the Forbes interview, Milei referred to his administration’s progress as only the “first step,” promising further reductions in government size and regulation. “It is not only a question of deregulating and removing these obstacles, but it also implies a new reform of the state to make it even smaller,” he said, adding that just a quarter of his planned reforms have been implemented.
Economic indicators suggest mixed results from Milei’s aggressive policies. Inflation has plummeted from 25.5% in December 2023 to 2.4% in November 2024. Economic activity grew 3.9% in Q3 compared to Q2, while BBVA forecasts Argentina will achieve fiscal balance in 2024 for the first time in 15 years.
Last month, Milei appeared on Lex Fridman’s podcast, where he encouraged Musk and Ramaswamy to pursue deep spending cuts in the U.S. federal budget. Following Milei’s recent comments about tax reforms, Musk reacted on X with a single word: “Impressive.”
