Wealth tax: which other countries in the world charge it

This Tuesday, the Frente de Todos reached the votes for approve with half sanction the extraordinary solidarity contribution project, also called “wealth tax” It establishes that taxpayers with assets over $ 200 million pay a special rate, with which the state plans to raise $ 300 billion which will be allocated to expenses related to the post-pandemic economic recovery.

While it is not a common tax all over the world, there are similar cases. In this sense, two emblematic examples of this practice are seen in Germany and France.

the He first decided to apply this tribute after the fall of the Berlin Wall. At the time, the goal was to raise money to help rebuild East Germany.

Wealth tax: the Frente de Todos succeeded in giving a half-sanction to the project to the deputies

However, last year Angela Merkel’s government approved a bill to abolish this tax from 2021 for the vast majority of taxpayers.

According to the reform implemented, workers whose income is less than 73,874 euros per year will stop paying the tax from 2021. During this time, employees whose income can reach 109,451 euros per year will only pay some and those with higher incomes. figure will continue to pay the full amount.

This means that 90% of taxpayers will stop paying it, while 6.5% will see tax partially reduced and the 3.5% with the highest incomes will continue to pay all tax.

In the In the French case, the solidarity tax is billed from 1.3 million euros, with a progressive rate from 0.50% to 1.50%.

He was first implemented in 1981, abolished in 1986 and re-imposed in 1988. On January 1, 2018, it was replaced by the Real Estate Wealth Tax (IFI). The tribute was intended to tax mainly real estate. In this way, the number of taxpayers affected increased from 350,000 to around 150,000.

Wealth tax and the effects of the pandemic

As well, there are cases of countries where the economic crisis caused by the pandemic coronavirus forced debate, even to increase these taxes.

A clear example of this is Spain where the government of Pedro Sanchez announced that from 2021, it will raise taxes on large corporations and the wealthiest to finance social spending.

Pablo Iglesias, The second vice-president and minister of social rights indicated that they would increase three points of capital income from 200,000 euros Yes two points earned from 300,000 euros, Meanwhile, he The inheritance tax will make it a point for fortunes of more than 10 million.

The European Union is relaunching a tax on banks

Another country that taxes big fortunes is Italy, one of the most affected in Europe by Covid19.

The government seeks to promote a progressive tax in 2020 and 2021 the declared annual earnings that you pay from a 4% aliquot to the gains of u $ s 91,200, and rock climbing aliquot imposition up to 8% for the above annual earnings u $ s 570,000. With this measure, they plan to reach more than 800,000 taxpayers.

There are two countries in Europe that also promote this tax: Switzerland and Russia. First, the government of Vladimir Poutine seeks to adopt, in conjunction with other tax reforms, a tribute to bank deposits of 13% of u $ s15,000, in Swiss, an opposition party proposed a single wealth tax levied on wealth u $ s 3,180,000 with a single rate of 2%, which seeks to raise more than $ 18,000 million to alleviate the economic crisis resulting from the pandemic.

Regional examples

There are also examples at the regional level. In Brazil, For example, a tax proposal was presented to heritages of u $ s10,000,000, with a 2.5% initial aliquot can be reduced to 1.5% if the taxpayer presents himself voluntarily for payment.

In Ecuador, an opposition sector, levies a tax on assets u $ s1,000,000, with a single aliquot of 0.9%.

The last case is Chile. In the Trans-Andean country, the opposition introduced into the public debate the need to levy a special tax called “the super rich”, which would consist of a exceptional contribution of 2.5% for assets equal to or greater than $ 22 million. For the moment, the initiative has not obtained the full support of the opposition blocs for Sebastián Piñera.

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