Argentina imposes a tax on the wealthy to confront Corona and support the poor

Posted on January 31, 2021

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Buenos Aires – AFP January 30, 2021

On Friday, a tax that includes the wealthiest people in Argentina came into effect, and it is a one-time tax aimed at financing the purchase of medical supplies related to confronting the Corona virus (Covid-19), in addition to helping small companies affected by the epidemic.

The Argentine Senate passed a law in December 2020, with a majority of 42 to 26, that imposes a tax on people whose assets exceed 200 million pesos (about 2.3 million dollars).

The “center-left” government headed by Alberto Fernandez hopes to collect about $ 3 billion from this tax, which will affect 12,000 wealthy people of Argentina’s 44 million people, 40% of whom live below the poverty line.

According to this law, the national tax authority is now able to calculate the amounts owed by the taxpayers and claim them.

Under the law, those who are subject to tax pay 3.5% on declared assets in the country, and 5.25% on assets abroad.

The proceeds will be used to purchase medical equipment, aid small and medium enterprises, finance social assistance and provide gas for people not connected to the network.


Opposition to the law

In turn, the opposition “center-right” parties criticized this measure, describing it as a “confiscation” of funds, while other sectors expressed their fear that the tax would become permanent.

Argentina is one of the countries most affected by the virus, with 1.9 million infections and more than 47,000 deaths.

The epidemic has exacerbated poverty in a country that has been stagnant since 2018, with an unemployment rate of 11.7%.


Inequality

It is noteworthy that “Oxfam” stated in its annual report on economic inequality that the 10 richest people in the world compensated for their losses due to “Covid-19” in nine months, in what may take the poorest more than a decade to recover.

The report stated that the 10 richest people in the world have collectively increased their fortunes by half a trillion dollars since the start of the epidemic, which is more than enough to secure Covid-19 vaccines for everyone.

Oxfam considered that “progressive taxes” on the wealthy are the key to a fair recovery from the crisis, noting that Argentina “paved the way” through the temporary solidarity wealth ta

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