The senate in Argentina passed a levy in December 2020 to help fund the country’s COVID-19 response. It was called the “millionaire’s tax” internally because it targeted about 12,000 people living in the country.
Anyone who has assets worth over 200 million pesos, or about $2.5 million, is impacted by this legislation. It passed 42-26 in the senate vote.
Argentina has flown under the news radar with its COVID infection rate, but it is one of the world’s most devastated countries. Over 1.5 million people have caught the virus, with almost 40,000 dying when the Senate vote took place.
How Will People Get Taxed by the COVID Levy?
The COVID-19 levy charges a progressive rate of up to 3.5% for the 12,000 qualifying people in Argentina with 200 million pesos in assets.
If those individuals have foreign assets as part of their financial portfolio, those items get taxed at 5.25%.
The money that comes from this funding will get split five ways.
- 25% gets directed toward natural gas ventures.
- 20% will go to the purchase of medical supplies to treat COVID-19 patients.
- 20% is headed into a relief program for SMBs who cannot operate during the country’s lockdowns.
- 20% is directed to a scholarship fund for students.
The remaining funds from the COVID levy will go into social development programs to protect the country’s most impoverished families.
Alberto Fernandez, who serves as Argentina’s president, hopes that the new legislation will raise up to 300 billion pesos to support its efforts to fight COVID.
Critics believe that this levy will cause less foreign investment to occur, with some calling it a confiscation effort.
What can you do at home to support local COVID relief efforts? The first step is to take care of yourself by using products from brands like Source Naturals and Carlson Labs to boost your immune system. You can then volunteer with local non-profit groups who distribute food, water, and other supplies to families in need in your area.