Buenos Aires, Argentina (August 25, 2025) — A joint collaboration between We Are Innovation, Fundación Internacional Bases and Consejo de Contribuyentes Argentina has resulted in a new report that can be crucial for Argentina’s fiscal future. Authored by Horacio M. Arana, Marianela Mendoza and Federico N. Fernández, this report is titled “Argentina’s Path to Fiscal Simplicity Through Flat Tax Reform” and explores the benefits the implementation of a flat tax can have for the country’s tax system and economy.
Argentina’s current fiscal landscape consists of an extremely complex tax maze, with multiple progressive brackets, contradictory deductions, and a tangle of more than 165 taxes, which confuse taxpayers and, in many cases, lead them to informality. This results in income tax evasion rates of 50 percent and a tax crisis that drains the equivalent of 4-5 percent of GDP annually in lost revenue.
Having this situation in mind, this report addresses how implementing a flat tax system could help Argentina become more prosperous and less complicated. The authors highlight real-world examples, explaining how eleven countries have demonstrated that it is possible to revolutionize their tax systems without collapsing public finances. Flat tax has brought these countries benefits such as more efficient and robust revenue collections, a decline in tax evasion, increased economic activity, increased foreign investment and overall simplification of the fiscal system.
The flat tax proposal for Argentina suggests replacing the current complex system of numerous national, provincial, and municipal taxes with a simplified structure centered on a 15 percent flat tax on income for both individuals and businesses, combined with a 13 percent provincial sales tax and limited municipal levies tied to local services. Modeled on Hall and Rabushka’s approach, the system taxes income once at source, exempts savings and investment, allows full deductions for key expenses, and simplifies compliance, aiming to reduce evasion and broaden the tax base. By eliminating inefficient taxes, lowering rates, and improving enforcement, the proposal seeks to cut Argentina’s high evasion rate and potentially recover significant revenue, making the system fairer, more efficient, and more transparent.
The experts behind this revolutionary proposal explain why Argentina needs this radical change:
Horacio Arana, a Senior Research Fellow at Fundación Internacional Bases and main author of the report, explains, “The document proposes a comprehensive tax reform for Argentina based on a flat tax inspired by successful international experiences. It seeks to simplify the tax system, reduce tax evasion, and encourage investment. The proposal includes the elimination of unproductive taxes and the unification of taxes.”
Marianela S. Mendoza, Innovation-Oriented Tax Analyst at WAI and secondary author of the report, points out, “This policy paper proposes a comprehensive tax reform based on a flat tax rate of 15 percent, inspired by successful international experiences. The objective is to simplify the tax system, reduce tax evasion, and encourage investment by eliminating unproductive taxes and unifying taxes. In a country where tax complexity punishes those who produce and subsidizes tax evaders, we cannot continue to wait for gradual reforms: it is time to take a bold turn toward economic freedom, transparency, and sustained prosperity.”
Federico N. Fernández, the CEO of We Are Innovation and secondary author of the report, concludes, “In a country like Argentina, adopting a flat tax would be a clear statement of intent. It represents the desire to move from a labyrinth of 165 taxes that punish effort to a simple and transparent system that rewards innovation and entrepreneurship. Thus, implementing a flat tax sends a clear message to the world: Argentina is committed to prosperity through fiscal simplicity.”
ENDS
ABOUT FUNDACIÓN INTERNACIONAL BASES
Fundación Internacional Bases is an institution that thinks globally and acts locally. Bases participate in the most critical discussions on individual liberties and the market economy. We do not seek to be just another voice but to be an active part of a fundamental change that will bring about the triumph of freedom, the passage to a society of responsible individuals, the opening of the economy, and the diminishing of the role of government in our lives. For this, we actively cooperate with think tanks, individuals, educational institutions, new media people, and all those who want complete freedom. For more information, visit https://fundacionbases.org.
ABOUT CONSEJO DE CONTRIBUYENTES ARGENTINA
The purpose of the Argentine Taxpayers’ Council is to submit proposals to public administrations aimed at simplifying the tax system and reducing the tax burden borne by the private sector. It supports a rational, non-distortive tax system that favors and stimulates social development within a framework of economic freedom. It has signed a Framework Agreement with the Fundación Democracia, which depends on the Círculo de Legisladores de la Nación, for the preparation of bills and the performance of dissemination activities in academic, political and parliamentary environments. The Council operates as a Working Group belonging to Fundación Internacional Bases. More information at https://www.consejocontribuyentes.org.
ABOUT WE ARE INNOVATION
We Are Innovation is a dynamic network of individuals and institutions who fervently believe in the power of innovation to drive progress and solve the world’s most pressing problems. With a global presence encompassing over 50 think tanks, foundations, and NGOs, We Are Innovation represents the diverse voices of a global civil society committed to advancing human creativity, embracing new technologies, and promoting innovative solutions. Through our collaborative approach and cutting-edge expertise, we are spearheading transformative change on a global scale. To learn more about our work, visit us at https://weareinnovation.global/.
