Project for contribution on great fortunes advances in the Argentine Congress

The Chamber of Deputies of Argentina approved this Wednesday and passed to the Senate a bill promoted by the Peronist government of Alberto Fernández so that the great fortunes make an extraordinary contribution for which it hopes to raise some 3,000 million dollars.

The initiative was approved in deputies by 133 affirmative votes, 115 negative and two abstentions in a long debate that began on Tuesday afternoon and ended this morning.

The so-called “wealth tax”, strictly speaking a one-time extraordinary contribution, was rejected by the opposition of the right-wing front Together for Change, considering it “confiscatory”, while the two abstentions came from the left that presented a project own.

The contribution will reach between 9,000 and 12,000 of the richest people in Argentina, a country with 40.9% of its 44 million inhabitants living in poverty and whose economy has been in recession since 2018.

The one-time contribution will tax those people whose declared assets exceed 200 million pesos (2.35 million dollars) with a progressive rate of up to 3.5% for assets in Argentina and up to 5.25% on assets. goods outside the country.

The liberal sector, critical of the project, objects that the contribution will undermine private investments, although it taxes individuals and not companies.

“We do not have any problem with the private sector, we need the private sector together with the public investing together. What discourages investment are bad governments”, said in the debate the deputy Máximo Kirchner, one of the promoters of the project and son of Vice President and former President Cristina Kirchner (2007-2015).

20% of the proceeds will be allocated to medical supplies to attend the health emergency due to the pandemic, another 20% will be for SMEs, 15% for programs for social development, 20% for student scholarships and 25% will go to gas development programs. natural.

“This is a lousy tax because it is going to ward off any hint of investment in Argentina,” said opponent Javier Campos.

“False of all falsehood”, answered the deputy Carlos Heller. “With this tax, less than 10,000 people would be reached, 0.8% of the total taxpayers. 42% have dollarized assets, of which 92% are located abroad. It is clear that this contribution is far from taxing the productive activity “.

The debate was accompanied from the street by caravans of protesters who supported the government initiative.

sa / lda