One of the law’s authors said it would only affect about 0.8% of taxpayers. Those affected will pay a progressive rate of up to 3.5% on wealth in Argentina and up to 5.25% on that outside the country.
AFP news agency reports that of the money raised, 20% will go to medical supplies, 20% to relief for small and medium-sized businesses, 20% to scholarships for students, 15% to social developments, and the remaining 25% to natural gas ventures.
They aren’t even pretending that this is for the Rona. Only 40% is going to something that could reasonably be claimed to be related to the virus. And if you think this will be a one time tax, I have a bridge to sell you. Once the tyrants find a new well of money, they will keep going back to it.
What the leftists in Argentina don’t understand (just like the leftists in America) is that people – particularly wealthy people – will react. They will hide their money, shift it overseas, move their businesses overseas, bury their money in the yard… whatever. They will find ways to avoid the tax. And in doing so, the government will not collect as much money as they thought and they will force all sorts of negative economic aftershocks and fuel illegal trade. And how will the little tyrants react? By onerous enforcement and extending the tax to more people. Then there will be more unrest and instability. This cycle has happened a thousand times.