FRIEDRICH-EBERT-STIFTUNG – HOW TO TAX A BILLIONAIRE – AN ADVOCACY TOOL AGAINST TAX PRIVILEGES FOR THE SUPER-RICH Table 2 Potential countries for further analysis Country Mexico Spain Inequality Very unequal, low labour share Very equal India Unequal South Africa Kenya Source: Own compilation Very unequal Unequal Taxes and transfers Very progressive Wealth taxes and other progressive reforms Not progressive Very progressive Progressive Data availability SDG 10.4.2, tax expenditure SDG 10.4.2, tax expenditure SDG 10.4.2, tax expenditure SDG 10.4.2, tax expenditure, Fair Tax Monitor 2022 ETR on capital in 2017 and development since 1994 12 per cent (+4 per cent) 26 per cent (+4 per cent) 11 per cent(+6 per cent) Abolition of dividend distribution tax in 2020 decreasing nominal tax rate from 40.6 per cent to 25.2 per cent 41 per cent (+17 per cent) 15 per cent (–14 per cent) Beyond the countries analysed in this case study and based on the analysis of data availability, we recommend focus­ing on the countries listed in table 2 in further analysis. A more comprehensive comparison is available in the Data Annex. ARGENTINA: HOW A WEALTH TAX ­AFFECTS TAXATION OF THE SUPER-RICH The Argentinian Country Example is a summary of a more comprehensive country case study by Grondona et al.(2024). BASIC FACTS – Income inequality: According to the household sur­vey(Indec, 2023), income of the richest 10 per cent is about 20 times greater than that of the poorest 10 per cent. Based on extensive imputations, WID estimates the share of the richest 10 per cent at around 50 per cent of total income and of the richest 1 per cent at around 15 per cent of the total. The GINI is estimated at 0.44 in the household survey, or 0.56 by WID. – Wealth inequality: The share of the richest 10 per cent is estimated at 60 per cent of total wealth and the richest 1 per cent around 25 per cent of the total by WID. Another estimate puts the share of the richest 440 families(top 0,001 per cent) at 6.5 to 9 per cent (CEPA, 2021). – Labour share: around 50 per cent(Indec, 2023). – Fiscal policy is estimated to reduce GINI for income inequality by 15 to 17 per cent and absolute poverty by 61 per cent(Rossignolo, 2022; Del Valle et al., 2022). TYPICAL SUPER-RICH INDIVIDUALS IN ARGENTINA Most super-rich individuals in Argentina are male – includ­ing the seven richest Argentinians according to Forbes and 74 per cent of the roughly 13,000 people subject to the sol­idarity contribution for the super-rich. They often own com­panies and in many instances use holding companies in low-tax jurisdictions such as Uruguay(CEPA, 2022; Gag­gero y Zanotti, 2023). Their companies often hold a high degree of market power in their respective sectors, for ex­ample Aluar and Fate, Ledesma, Techint-Tenaris, and Grupo Clarín. There are also cases where essential goods and ser­vices are provided to the population such as internet and te­lephony, food, health services or financial intermediation. Several of these companies emanated from the privatisa­tion wave in 1982 and the 1990s. Some of them benefit from special tax regimes. Tax subsidies for industrial promo­tion amount to 0.75 per cent of GDP(MECON, 2022) TAXES PAID BY THE SUPER-RICH Argentina taxes both wealth and capital income. In addi­tion, some of the federal states also tax real estate and in­heritance(only Buenos Aires). The wealth tax(Impuesto sobre los bienes personales, ISBP): applies to all personal wealth exceeding the threshold of about USD 50,000 and excluding self-occupied housing. It applies to global wealth for all residents of Argentina and to Argentine wealth for those residing outside of Argenti­na. The tax rate varies between 0.5 and 1.75 per cent and goes up to 2.25 per cent for wealth held abroad. But there is a considerable list of exemptions – for example, for rural properties, which according to budget estimates amounts 30