If not stopped, the Brazilian left may follow suit

Brazil Uncovered - The COVID-19 pandemic is the excuse for the approval of the wealth tax in Argentina. Under the administration of Kirchner and Fernández, the GDP fell 19.1% in the second quarter of 2020.
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The COVID-19 pandemic is the excuse for the approval of the wealth tax in Argentina. Under the administration of Kirchner and Fernández, the GDP fell 19.1% in the second quarter of 2020.
On December 4, 2020, the Senate in Argentina approved an ‘extraordinary one-off fee’, an euphemism for confiscation. The law will take effect in January 2021 and is expected to reach around 12 thousand taxpayers and raise 300 billion Argentine pesos, about 3.5 billion dollars. Taxpayers with assets over 200 million pesos will have 2% to 3.5% of the value seized. The government of President Alberto Fernandez says the measure is necessary to guarantee subsidies to families and to grant credit to small and medium-sized companies hard hit by the Chinese virus pandemic. The situation in the country is extremely delicate: 14% unemployment rate, uncontrolled inflation, a 12.9% of GPD decrease and 44% of the population can’t afford to buy staple foods. Argentina, under the direction of Fernandez and Kirchner, is making great strides towards economic and social chaos.

The wealth tax in Brazil also has supporters on the left. There are several bills under analysis in Congress. Proposals based on suggestions from tax auditing entities aim to tax between 1% and 3% per year from taxpayers with assets in excess of R$ 20 million (approximately US$3.8 million). The Workers’ Party proposes to tax 2.5% from people with assets above R$ 50 million (US$9.5 million). Interestingly, left-wing parties firmly believe that the wealth tax is ‘tax justice’, however they have not put the measure into effect while they’ve been in power for at lest a quarter of a century. Just as the Brazilian economy begins to pick up after the corona virus, the left starts talking about ideas that drive away investments and harm the country.

Tax justice can only be achieved with a lean and efficient state, where democracy and free enterprise prevail. This is everything that the left rejects. We don’t need any more taxes.

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