Posted on 04.09.2021 Updated on 09.04.2021
On the most unequal continent in the world, the Covid-19 crisis reinforces inequalities: while the richest get richer, millions of people are plunged into distress. To face this unprecedented crisis, the Latindadd network demonstrates the need to introduce a wealth tax.
© CCFD-Terre Solidaire
The Latin American Network for Economic and Social Justice (Latindadd), supported by CCFD-Terre Solidaire, publishes at the end of 2020, the report: “Now or never: tax the wealth and the rich in Latin America and the Caribbean”. The data they have collected helps us understand why the wealth tax would mitigate the effects of the COVID-19 crisis.
Latin America: the most unequal region in the world
While the pandemic has reinforced the inequalities between the richest and the poorest, the great fortunes participate only in a tiny proportion to state revenues.
Growing inequalities in the time of COVID-19
The pandemic has disastrous repercussions for the social and economic health of countries in the region and threatens millions of people.
Latindadd campaigns for a wealth tax
50% of state revenues come from the consumption tax, which does not distinguish between income differences. For Latindadd, taxing large fortunes would mitigate the effects of the pandemic.
Wealth tax is gaining ground
Latindadd leads actions of influence and mobilization with the 20 governments of the region, and the network can rejoice in the first victories.
The introduction of this tax is hampered by the fear of “capital flight”.
More “Taxes do not reduce investment. I even think that wealth taxes would do the opposite: they would stimulate investment”, according to Mr. Canete Alonso, economist at Latindadd.
The network continues its mobilization with the campaign “Wealth Taxes Now“with a view to making these measures sustainable and to encourage other States to legislate.
Ophélie Chauvin.
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