ARGENTINA - Millionaires Taxed for Virus Relief

Arno Froese

A one-off tax on Argentina’s richest people to help pay for medical supplies and relief for small businesses battered by the global coronavirus pandemic entered into force.

A law passed by the Senate in December by a vote of 42-26 approved the levy on people whose assets exceed 200 million pesos (about $2.3 million).

The center-left government of President Alberto Fernandez hopes to raise about $3 billion from taxing the richest 12,000 of Argentina’s 44 million inhabitants. 

Under the law, those who are taxable will pay up to 3.5 percent on assets declared within the country, and up to 5.25 percent on assets held abroad.

The pandemic has exacerbated the already high poverty rate in a country which has been in recession since 2018, and has an unemployment rate of 11.7 percent.

In its annual report on economic inequality, Oxfam said the world’s 1,000 richest people had recouped their coronavirus-related losses within nine months, while it could take the world’s poorest more than a decade to recover from the impacts of the global health crisis.

“The world's 10 richest men have seen their combined wealth increase by half a trillion dollars since the pandemic began—more than enough to pay for a Covid-19 vaccine for everyone and to ensure no one is pushed into poverty by the pandemic,” it said.

Oxfam said “progressive taxation” of the rich is key to any equitable recovery from the crisis, and said Argentina had “showed the way” with its temporary solidarity wealth tax., 29 January 2021

Arno's Commentary

Decades ago, Argentina was considered to be one of the most successful counties on the South American continent. Today, they are battling to survive economically. Yet as the article indicates, the rich apparently have it all. Here the old saying, “The rich get richer, while the poor get poorer,” is applicable.

As in virtually all countries, there are multiple reasons for the rise and decline, but we must emphasize that in the end, there will be no difference between the successful, developed nations and the secondary, under-developed ones. When judgment comes after the sixth seal is opened, we read: “And the kings of the earth, and the great men, and the rich men, and the chief captains, and the mighty men, and every bondman, and every free man, hid themselves in the dens and in the rocks of the mountains; And said to the mountains and rocks, Fall on us, and hide us from the face of him that sitteth on the throne, and from the wrath of the Lamb” (Revelation 6:15-16).

Incidentally, in the New Testament, we read the word “rich” 64 times, and 39 times it is in a negative context; while the word “poor” appears 35 times, and they are comforted 33 times.

Arno Froese is the executive director of Midnight Call Ministries and editor-in-chief of the acclaimed prophetic magazines Midnight Call and News From Israel. He has authored a number of well-received books, and has sponsored many prophecy conferences in the U.S., Canada, and Israel. His extensive travels have contributed to his keen insight into Bible prophecy, as he sees it from an international perspective.

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