Wealth Tax

[toongeorges]

A quote from Oscar Parrilli, senator of Argentina after the extraordinary wealth tax has been approved (on top of the regular wealth tax):

"Los gastos derivados de la pandemia fueron del 20% del presupuesto en 2020 y serán el 15% en 2021. A esta fuerza política le pareció que aquellos sectores más privilegiados, a los cuáles la pandemia les ha afectado menos, podrían hacer una contribución extraordinaria al Estado, porque han vivido del Estado. No tenemos que tener ninguna duda. Si hay una situación de emergencia, aquellos privilegiados, aquellos que se enriquecieron gracias al Estado de una manera exorbitante, bueno. pongan algo"

https://www.lanacion.com.ar/politica/el-kirchnerismo-impuso-su-mayoria-convertir-ley-nid2530340

I think he should replace "aquellos sectores más privilegiados" with "aquellos politicos más privilegiados", though as the Covid crisis started, the Argentine politicians were on the fences that they should not be the ones to have cuts in their salaries, so we know that politicians taking cuts won't happen. Instead, they are grabbing more.

Is this a healthy investment environment? Will Argentina flourish under these politicians or will it stay the "victim of international capitalists conspiring against the economy"?

 

[Alpinista]

I think this tax is totally idealogically driven. I think neither Maximo nor Heller believe that there will be much taxes paid in the end. But obviously it is a good "Robin Hood" story to tell the voters.

The most absurd point about the tax hasn't even been mentioned here: the tax applies - against all logic and common sense - not the net assets, but completely disregards the debts. So if someone was crazy enough to invest in Argentina 3m USD, took up a credit of 5m USD (bringing his assets to 8m USD), he is ending up paying taxes not on 3m USD, but on 8m USD.

 

[jeff1234]

I think this tax is totally idealogically driven. I think neither Maximo nor Heller believe that there will be much taxes paid in the end. But obviously it is a good "Robin Hood" story to tell the voters.

The most absurd point about the tax hasn't even been mentioned here: the tax applies - against all logic and common sense - not the net assets, but completely disregards the debts. So if someone was crazy enough to invest in Argentina 3m USD, took up a credit of 5m USD (bringing his assets to 8m USD), he is ending up paying taxes not on 3m USD, but on 8m USD.

Just a guess but debts are easier to fabricate, everyone would have negative wealth.

 

[Pensador]

Meanwhile back at the ranch. URU is handing out ten year tax holidays for 400K Investments etc. What a contrast.

 

[Alby]

La AFIP lanzará 10.000 notificaciones a personas físicas con inconsistencias en su declaración de Bienes Personales

Mediante esta estrategia, el organismo que dirige Mercedes Marcó del Pont ya obtuvo ingresos por $ 600 millones en concepto de Bienes Personales. Las notificaciones van destinadas a personas humanas

www.google.com