Argentina President Javier Milei’s economic reform package won a key victory when the Senate approved his omnibus bill Thursday but additional income tax legislation was rejected following debate marred by violent protests that broke out earlier in front of congress.
After weeks of tense negotiations, senators passed Milei’s market-friendly plan that included privatizations and labor law changes when his vice president broke a 36-36 tie. Hours later, the income tax portion of a second bill failed in a vote that went section-by-section through the proposal.
Both the income tax proposal — which Milei’s supporters made changes to late on Wednesday to help smooth passage — and the omnibus economic bill still need to go back to the lower house.
Underscoring some of the political resistance to Milei’s proposals, protesters threw rocks, broken glass and Molotov cocktails Wednesday afternoon at riot police attempting to clear a nearby plaza with a water cannon and tear gas. Protesters also flipped and burned a car.
Despite the income tax setback, the economic changes approved in the first bill would mark Milei’s his biggest legislative achievement, one investors are likely to cheer.
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