Argentina passes millionaire’s tax

Argentina’s Senate passed a tax on about 12,000 of the country’s richest people to pay for coronavirus measures including medical supplies and relief for the poor and small businesses. In a session streamed live on YouTube, and after a long and polarising debate, the so-called solidarity contribution was signed into law with 42 votes in favour and 26 against, as the pro-government alliance flexed its majority. The government of President Alberto Fernandez hopes to raise 300 billion pesos ($3.75 billion) with the one-off levy, which earlier passed the Chamber of Deputies with 133 for votes to 115 against. The pandemic has exacerbated already high unemployment and poverty rates in a country which has been in recession since 2018. Under the scheme - also dubbed the “millionaire’s tax” - people with declared assets greater than 200 million pesos will pay a progressive rate of up to 3.5% on wealth in Argentina and up to 5.25% on wealth outside the country.

Published in The Express Tribune, December 6^th, 2020.

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