Creating a new 1% to 1% tax in Uruguay would allow implementing public policies that eradicate child poverty
A professor at the Faculty of Engineering of the University of the Republic, economist, author of the book Uruguay For Export and substitute deputy for the 1001 List of the Frente Amplio was in Melo to dictate an open talk on the subject last night in the University of the University.
This proposal to create a new tax of 1% to 1% richer in Uruguay, with a specific purpose, would allow to implement public policies that eradicate child poverty.
“We deepen this debate that has been opened on the perspective of taxing the richest 1% to raise 1% of GDP and with that anchoring a plan to effectively start to lower the tremendously high levels that we have of child poverty that have been so for 10 years” He held the Economist Rodrigo Alonso.
Everything that is collected, in case the new tax is approved, would have a specific purpose. “In this way there is no risk that is diluted in the universe of expenses that the State has. It must be focused because child poverty today is in 32% in the case of children under 6 years and is there already a decade ago” revealed. “Uruguay lowered child poverty between 2004 and 2014, in part for distributive policies and partly because economic growth was traction” basis. “In that period there was a very sustained economic growth of 5% real per year. Then it entered a 10 -year table and there could not be lowered anymore, child poverty did not move there and there it fits both our third government, that of Tabaré 2, as the government of Lacalle Pou” He pointed out.
He considered that the country is mortgaging its future if the conditions for “Turn that curve” and lower it substantively.
“The experience shows that at these growth rates we have and that we are going to have there is no way to lower child poverty substantively” Alonso assured. “It can be lowered by a point or half point and the resources that are placed today in the national budget, those that are incremental in a good way are destined for that item mostly, are insufficient to break the structural one.” He said.
“Not only have to resort to that 1%, I would also seek other sources of financing that allow us to assemble a set of sources that are endowing a fund that specifically attack this problem” Rodrigo Alonso raised The daily professional.
He requested the design of a comprehensive policy that is not raised today. “There is not a comprehensive plan for the dejection of child poverty today, despite the OPP, it is calling for a social dialogue to talk about social security and social policies and among the priority issues it placed the issue of poverty. That can be a space through which the government, the academy, the other political parties and the opposition can agree to put together a comprehensive plan and provide it with funds” held.
He said this point should be national priority. “In the electoral campaign the issue was much discussed but I am not seeing that we are being consistent with that discussion that occurred during the electoral cycle where it seemed that the whole society agreed that this was a focus and it was a need that could no longer be eluded anymore. I think it can effectively be a mile said.
Between 500 and 700 million dollars.
It is estimated that through this route the State would be able to raise between 500 and 700 million dollars annually. “It’s a very considerable figure” Valuó. “In the national budget today the incremental resources, which is above the baseline, are 140 million dollars” revealed.
“I would not wait to have that threshold of resources to move forward, we must act, we must act substantially, determined and permanently on this subject. We believe that the only way we have, in a scenario of restrictions, of stagnation about 10 years ago, is getting into aspects that make the distribution of wealth” The economist Rodrigo Alonso proposed.
