Wealth Tax

Since the "weatlh tax" applies to temporary and permanent residents and Argentine citizens, it no doubt already has had a significant impact on expatriation. You can search for threads on the subject using key words. There was at least one expat who made it clear the "bienes personales" tax on their foreign assets would preclude seeking residency in Argentina.

As far as investments are concerned, the capital gains tax on properties purchased after January 1, 2019 (?) is likely to have a significant impact on the purchase of Argentine property as an investment..as there could be a signifiant tax levied on a "capital gain" in pesos, while the dollar amount of the sale could actually be less than the purchase price (if what one semi-retired real estate professional posted on the subject is accurate).

Holy smoke! Great to see you back, Steve, I think I wasn't the only one who had feared you had croaked in some robbery or due to covid or something! Glad to see it's not the case!

Long live the Hermit of the Pampas!
 
This tax reminds me of the US tax which was called "Excess Profits Tax", which the US government put in place from several times in the 20th century. Roughly 1917-1921, again in 1932, and then, in 1940 on and off thru 1953.
Of course, it was a much higher tax- the US rate was between 50%, in 1940, to a flat 95% tax on profits over prewar earnings in 1943.

In the current Argentine case, its not being based on increases over pre-pandemic earnings, of course.
But the idea of special taxes in extraordinary times is nothing new, nor particularly socialist.
 
This tax reminds me of the US tax which was called "Excess Profits Tax", which the US government put in place from several times in the 20th century. Roughly 1917-1921, again in 1932, and then, in 1940 on and off thru 1953.
Of course, it was a much higher tax- the US rate was between 50%, in 1940, to a flat 95% tax on profits over prewar earnings in 1943.

In the current Argentine case, its not being based on increases over pre-pandemic earnings, of course.
But the idea of special taxes in extraordinary times is nothing new, nor particularly socialist.

The US tax was a tax on profits, not on assets. If you did not make a profit in the US, you did not pay the tax and could keep what you had.

The Argentine tax expropriates you (which could be seen as a violation of the Argentine constitution, but the Peronists would not care).
- Either you trust the Argentine banks and put your money with them and pay a "regular" (PAIS) wealth tax of 1,25% + extraordinary wealth tax of 2,00% - 3,50%
- Or you want to keep your money safe out of Argentina and pay a 2,25% "regular" wealth tax (PAIS) + a 3,00% - 5,25% extraordinary wealth tax
This is not a tax on your income or any profit that you make. This is a stake of your property that they take away.

This will drive money out of the country, but then again some Peronists are saying that not paying the tax is not "solidary".

Here the article of the Argentine constitution that may contradict with the wealth tax:

Artículo 17.- La propiedad es inviolable, y ningún habitante de la Nación puede ser privado de ella, sino en virtud de sentencia fundada en ley. La expropiación por causa de utilidad pública, debe ser calificada por ley y previamente indemnizada. Sólo el Congreso impone las contribuciones que se expresan en el Artículo 4º. Ningún servicio personal es exigible, sino en virtud de ley o de sentencia fundada en ley. Todo autor o inventor es propietario exclusivo de su obra, invento o descubrimiento, por el término que le acuerde la ley. La confiscación de bienes queda borrada para siempre del Código Penal argentino. Ningún cuerpo armado puede hacer requisiciones, ni exigir auxilios de ninguna especie.
 
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The Argentine tax expropriates you (which could be seen as a violation of the Argentine constitution, but the Peronists would not care).

The Peronists caring or not is irrelevant. Functional republics are designed to withstand a complete failure of the Executive branch. The problem is that the Judiciary does not work and therefore it is incapable of enforcing the constitution. Therefore the whole system is broken, there is no judicial security/stability and that is why no one in their right mind would invest here.
 
The US tax was a tax on profits, not on assets. If you did not make a profit in the US, you did not pay the tax and could keep what you had.

tax on assets is much better and fair than tax on profits.

Tax on assets taxes parasitic non-efficient people.
If one invests wisely -- then nothing to worry -- profits would cover tax multiple times.

Taxing profits is taxing efficient people. It's the worst, it's against meritocracy.
 
tax on assets is much better and fair than tax on profits.

Tax on assets taxes parasitic non-efficient people.
If one invests wisely -- then nothing to worry -- profits would cover tax multiple times.

Taxing profits is taxing efficient people. It's the worst, it's against meritocracy.

Your reasoning is flawed and sounds like the way the Peronists think, which results in a policy where only politicians can be rich and everyone else is getting poorer.

How comes so many people here are infected with the idea that it is fine to steal from the rich and how comes they do not understand that if you steal from the rich, you also make the poor poorer?

The basis for a wealthy society is one of stability and trust were the rich are willing to invest in the poor. People can only earn money if someone with money is willing to pay them. If you try to grab the money directly, it evaporates out of your reach and out of the economy. If you do not respect property rights, you become a poor country. If you respect property rights, people with money may invest, which makes more people wealthy, so more people can invest and more people get wealthy and so on.

It is a process that is outside the control of the government. The government can only stimulate this process by making the country investment friendly or damage it by scaring investors away.

Sadly, Peronists are choosing the way to impoverishment. Argentines get what they want, because too many of them fail to understand that you cannot take wealth away from someone else, instead wealth is something that needs to be created.
 
tax on assets is much better and fair than tax on profits.

Tax on assets taxes parasitic non-efficient people.
If one invests wisely -- then nothing to worry -- profits would cover tax multiple times.

That's an oxymoron. If you invest wisely, then you make a nice profit compounded annually, and you end up with tons of assets, which consequently makes you a parasitic non-efficient person.
 
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