Argentina’s free-market President Javier Milei is shutting down the AFIP (the nation’s tax collection agency). Portions of it will be merged with the Customs Service, in a new smaller agency that will employ 34% fewer people, including a 45% reduction in higher-level positions.
Milei’s office says the shutdown was necessary because “throughout its existence, this agency has functioned as a political cash box and, as we all know, many Argentines have been subjected to absolutely immoral persecutions. No State bureaucrat should be delegated the power to tell an Argentinean what to do with his property.” He says that through a simpler and fairer tax system, the Gestapo-like tactics of the tax collectors can be reined in without losing collections.
Contrast Milei’s approach with that of the Biden Administration, which has become infamous for its “Inflation Reduction Act” including a doubling of the size of the IRS workforce by some 87,000 people over the next decade.