The president of the Montevideo Department of the National Party, Laura Raffoparticipated this week in a debate on the program all the voices of Channel 4 (space in which he is a panelist), in which he discussed the Personal Income Tax (IRPF) and the ways in which the income bands are calculated to apply it.
“The non-taxable minimum is $36,148 nominal. If you charge between $36,149 nominal, and $51,640, you pay 10%”, Raffo began by saying, reading the notes that he had in his lap, but was interrupted by the public accountant and Master in Public Finance and Tax Administration, Gustavo Viñales, to point out that he was in a mistake.
“That is an error because he has deductions from the BPS, FONASA, deductions for children, and deductions for rent. It is the problem of talking about what one does not know”, explained Viñales.
From off-camera they questioned Viñales if he was “the owner of the truth”, to which the expert replied “No! It’s how the system works! If we tell people ‘look, you pay or your neighbor pays $28,000, that’s a mistake’. “The problem is giving an opinion without the foundations,” continued Viñales, who is also a master’s professor at the University of the Republic.
@Vinalesgustavo he was on tv yesterday and had an exchange with @lauraraffo that once again abusing that strategy, it tries to deceive people this time with the income tax contribution bands and that when cornered the cynic comes out asking for calm.
The moment ?? pic.twitter.com/V2GdSBGe4W— Steve Buscemi ᵖᵃʳᵒᵈʸ ✌️ (@ElOlgaZan) October 25, 2022
“You’re wrong, Laura”
Raffo insisted that people who earn $28,500 are liable to collect personal income tax, but Viñales did not let her continue with her argument, asserting that she was wrong.
“In Uruguay, with $28,500 and three children, they do not pay personal income tax. And I tell all the people in Uruguay: enter the personal income tax simulator that is in the DGI. What’s more, to pay personal income tax, with one child -not even with three-, and without deducting rents -which can be deducted-, you have to exceed $52,000 nominal. The contributions of that person between BPS, FONASA, can be in the order of 20%. With $28,500 and three children, no one in Uruguay pays personal income tax”.
“You’re wrong, Laura, believe me, what you’re saying is wrong,” he snapped, looking at her straight on, to which the former mayoral candidate replied: “I don’t believe you. I trust the numbers I have.”
The expert noted that the range is above the nominal $52,000 with a child, so that one or a worker has to pay the tax in question, which represents 32.9% of the total number of people who receive income as assets. Regarding retirees, he indicated that only 1 out of 4 people with income in retirement (retirees or pensioners) pay.
The economist remained adamant that a person who receives $28,500 does pay personal income tax, which was denied by both Viñales and the senator of the Broad Front, Eduardo Brenta, who was a guest on the program.
