Economy March 1, 2026

Milei Calls for Tax Cuts and Overhaul of Electoral and Criminal Codes as Congress Opens

Argentine president says lower taxes should promote growth and signals further reforms planned for 2026 after labor law victory

By Hana Yamamoto
Milei Calls for Tax Cuts and Overhaul of Electoral and Criminal Codes as Congress Opens

In an address opening Argentina's new congressional session, President Javier Milei urged a reworking of the country's tax code to prioritize growth, and announced his government will pursue changes to the electoral system and the criminal code. His remarks came days after Congress approved contested labor reforms that critics say ease the way for layoffs, a legislative win that followed his strong performance in October's midterm elections.

Key Points

  • President Javier Milei called for lower taxes to prioritize economic growth; this targets fiscal policy and the broader business environment.
  • His administration will push for reforms to the electoral system and the criminal code, indicating a broad institutional legislative agenda.
  • Congress recently approved contentious labor reforms that critics say will make it easier for companies to lay off workers; this directly affects the labor market, employers, and workers.

BUENOS AIRES - Delivering the speech that opened the new congressional session, President Javier Milei said Argentina needs a fundamental revision of its tax system and signaled additional reform initiatives that his administration plans to pursue in 2026.

"We need lower taxes because the tax system must serve growth, not the revenue needs of whoever is in office," Milei said, framing tax reduction as a mechanism to support economic expansion rather than simply to meet budgetary demands.

Beyond tax changes, the president listed further priorities for his administration. He said the government will press for modifications to the country's electoral system and for revisions to the criminal code. Milei characterized these measures as part of a broader reform agenda that will continue into 2026.

The president's remarks followed a recent legislative victory. On Friday, Congress approved a set of labor reforms that have drawn sharp attention. The measures were described as contentious, and critics contend the changes will make it easier for companies to lay off workers.

Those labor reforms came on the heels of the president's solid showing in October's midterm elections, an outcome that preceded the congressional approval and bolstered the government's position in advancing its agenda.


Context and immediate implications

Milei presented tax reduction as the central economic policy objective in his opening address, stating that the fiscal framework should support growth. He also named electoral and criminal code reform as legislative priorities, and tied the government's capacity to advance its program to recent parliamentary developments.

  • Congress has already approved contentious labor reforms that critics argue lower protections against layoffs.
  • The government intends to pursue further reforms in 2026 that it considers essential, including changes to electoral rules and criminal legislation.
  • The passage of the labor package followed the president's strong performance in October's midterm elections, according to the sequence of events outlined in the address.

Reporting noted the sequence of reform efforts and political developments as presented in the presidential address and recent congressional action.

Risks

  • Contentious nature of the approved labor reforms - critics say the changes will make it easier to lay off workers, posing risks to the labor market and household income.
  • Uncertainty around the planned 2026 reforms - the article states the government will seek further changes in 2026, but outcomes and implementation details remain unspecified.
  • Political contention - the labor measures were described as contentious, indicating potential political and social friction as further reforms are pursued.

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