This system incentivizes people not to work en blanco, not to contribute to the economy through taxes.
What in Argentina incentivizes to pay taxes? You work with clients abroad, it's 50% lost just in the exchange rate, plus taxes and extra scrutiny. You want to export - they apply taxes on exports and change rules to their wish (have you read: no meat should be exported anymore for 30 days? that's currently going on!). You need to import and again 50% taxes and rules changing to their wish, not to mention bribes in custom (another variable). No wonder that the best business here is to open a quiosco selling local candies and cigarettes.