Argentina Passes Millionaire’s Tax for Covid Relief
Argentina’s Senate has approved a new one time wealth tax to be paid by the rich people. The money will help the government fund COVID-19 measures, including purchasing health supplies and giving econ
Argentina’s Senate has approved a new one time wealth tax. This tax money will help the government fund Covid-19 measures, including purchasing health supplies and giving economic relief to struggling businesses.It was passed late on Friday 4th December. It got 42 votes in favour and 26 against it. This tax will apply to about 12,000 of the country’s richest citizens. This tax has been called the “millionaire’s tax”. The law applies a tax of at least 2 percent on people with more than $2.45m in assets. President Alberto Fernandez said that Argentina will raise about $3.7bn amid the economic downturn worsened by the COVID-19 pandemic.
Senator Carlos Caserio, a member of the committee responsible for the bill said, “This is a unique, one-time contribution. We’re coming out of this pandemic like countries come out of world wars, with thousands of dead and devastated economies. Argentina has reported more than 1.45 million cases of Covid-19 since the start of the pandemic, as well as more than 39,500 deaths linked to the virus. The funds will be allocated to buy medical equipment and supplies, aid small and medium-sized businesses, support students and social programmes, and fund natural gas projects. Senator Anabel Fernandez Sagasti wrote on Twitter, “The #AporteSolidario is extraordinary because the circumstances are extraordinary. We must connect between those who have the most to contribute and those who are in need.” The tax was first passed in the lower Chamber of Deputies. It was criticised by Argentina’s opposition legislators. Daniel Pelegrina, President of the Argentine Rural Society, warned that proponents (supporters) of the legislation “to present it as a contribution of the richest, but we know what happens with all those unique taxes – they stay forever”
