Argentine President Javier Milei’s economic reform agenda won a decisive victory when the Senate approved his omnibus bill on Thursday, but additional income tax legislation was rejected following a debate marred by violent protests that broke out earlier in front of Congress.
After weeks of tense negotiations, senators passed Milei’s pro-market plan, which included privatizations and labor law changes, when his vice president broke a 36-36 score. Hours later, the income tax portion of a second bill failed in a vote that took the proposal section by section.
Both the income tax proposal – to which Milei’s supporters made changes Wednesday evening to facilitate its passage – and the omnibus economic bill have yet to be returned to the lower house.
Underscoring some political resistance to Milei’s proposals, protesters threw stones, broken glass and Molotov cocktails on Wednesday afternoon at riot police who were trying to clear a nearby square with a water cannon and tear gas. . Protesters also overturned and burned a car.
Despite the income tax rollback, the economic changes approved in the first bill would mark Milei’s biggest legislative achievement, something investors should applaud.
Here is more from Bloomberg. Here is many unpublished versions of the story.
