The EU Tax Observatory ( EUTO , Eutax ) is an independent research institute dedicated to studying tax evasion and avoidance in the European Union , established in June 2021. Its offices are hosted at the Paris School of Economics , with staff also hosted at the University of Copenhagen . In its first year of operation its budget was €1.1 million, funded primarily by the EU's Directorate-General for Taxation and Customs Union .
138-470: The Observatory's October 2023 annual report on tax evasion described the potential impact of a wealth tax on billionaires and of a minimum tax on companies' profits. It also describe ways for countries to unilaterally implement such policies and fight tax avoidance. This article about the European Union is a stub . You can help Misplaced Pages by expanding it . This tax -related article
276-485: A trade surplus for the first time in seven years and the twenty percent reduction in the wealth gap , the lowest such gap in the country's history. Political analyst Marcelo Arequipa noted that Arce's economic measures in 2021 had "managed to stabilize the economy [although] not make it grow", and that one of the president's main objectives in 2022 would be to conduct economic growth beyond pre-pandemic levels. Throughout April 2022, Arce conducted yearly negotiations with
414-537: A combined net worth of €4.2 Million would have to pay an annual wealth tax of €2,000. The proposition was eventually vetoed by the CDU/CSU and therefore never again considered. In 2014, French economist Thomas Piketty published a widely discussed book entitled Capital in the Twenty-First Century that starts with the observation that economic inequality is increasing and proposes wealth taxes as
552-407: A countermeasure. Piketty proposes a global system of progressive wealth taxes to help reduce inequality and avoid the trend towards a vast majority of wealth coming under the control of a tiny minority. This analysis was hailed as a major and important work by some economists. Other economists have challenged Piketty's proposals and interpretations. In 2017, when introducing the fiscal reform of
690-478: A decrease in capital stock. An estimate from the Penn Wharton Budget Model indicates that if the revenue from the wealth tax proposed by Elizabeth Warren were used to finance non-productive government spending, GDP would decrease by 2.1 percent by 2050, capital stock would decrease by 6.5 percent, and wages would decrease by 2.3 percent. Some opponents also point out that redistribution through
828-562: A different country. Reallocating assets to avoid taxation is more difficult in the United States because tax filings apply equally to United States citizens no matter the country of current residence. Second, low exemption thresholds caused liquidity problems for some individuals who were on the lower end of wealth taxation thresholds. Third, they contend European wealth taxes need modernization and improved methods for systematic information gathering. Saez and Zucman have also argued that
966-634: A different rate. A small number of countries have been using wealth tax regimes for some time. Revenues earned from wealth tax schemes vary by country from 0.98% of GDP in Switzerland to 0.22% in France, for example. 2020 United States presidential candidate Elizabeth Warren claimed a wealth tax plan could generate 1.4% of GDP in revenue for the United States. According to data from the Organisation for Economic Co-operation and Development (OECD),
1104-510: A draft bill against the legitimation of illicit profits, financing of terrorism, and the proliferation of weapons of mass destruction. The main substance of the proposal was primarily technocratic, focused on combating money laundering in the country. Its policies were largely copied from similar ones already in place in European countries. The Chamber of Deputies approved the bill without opposition support on 17 September, and its passage in
1242-634: A lower corporate tax rate, a new tax rate for financial corporations, and a new wealth tax. For the years 2019, 2020, and 2021, the new wealth (equity) tax has been set at 1% for Colombian-resident individuals' worldwide net worth, and 1% for non-resident individuals on Colombian properties only, such as real estate, yachts, artwork, vessels, ships, and other assets with a net equity of at least COP5 billion ( US$ 1.5 million ). Shares in Colombian firms, accounts receivable from Colombian debtors, some portfolio assets, and financial lease agreements are all exempt from
1380-478: A meeting with Minister of Government Eduardo del Castillo and Presidential Spokesman Jorge Richter, María Galindo , representative of the Mujeres Creando collective, issued a letter to Arce calling on him to form a "high-level" commission to review cases of femicide and rape for possible instances of corruption, interference in investigations, or dubious delays of justice. On 1 February, Arce announced
1518-457: A negative PCR test to access most public institutions, including banks and airports, as of New Year's Day 2022. In its first week, the mandate achieved its intended effect of boosting vaccinations, with daily inoculation figures rising from 2,000 per day to around 100,000. However, protests from traditionally government-aligned unions led the administration to back down on the policy, with Minister of Health Jeyson Auza announcing on 6 January
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#17327914008491656-532: A negotiated agreement with the country's public health sector, who on 5 February declared the entire content of the law to be in violation of the Constitution at an emergency meeting in Santa Cruz de la Sierra . Their complaints centered on three provisions in the legislation, with the most egregious aspect being Article 19, which prohibited the interruption of the national health system for the duration of
1794-423: A percentage of the net worth exceeding a certain level. Wealth taxes can be limited to natural persons or they can be extended to also cover legal persons such as corporations . In 1990, about a dozen European countries had a wealth tax, but by 2019, all but three had eliminated the tax because of the difficulties and costs associated with both design and enforcement. Belgium, Norway, Spain, and Switzerland are
1932-531: A personal wealth ranging between US$ 4.3 million and US$ 5.7 million; 1.9 percent from US$ 5.7 million to US$ 7.2 million; and 2.4 percent on fortunes larger than that. The measure applied to all assets stored in accounts at home or abroad by any persons residing in Bolivia—including foreigners—for more than 183 days. The fine for failing to comply with this measure was equivalent to 200 percent of the initial amount due. The Ministry of Economy initially estimated that
2070-401: A point Arce denied. During the campaign, Arce distanced himself from Morales, with David Apaza, a MAS leader from El Alto, stating that "categorically, Evo will not interfere in the government of brother Luis Arce ... [We] believe our comrade [Morales] should rest, while brother Luis Arce takes the lead". Arce stated that Morales "will not have any role in our government" but will still be
2208-608: A private ceremony held at the Tiwanaku citadel, in the company of just a few officials. There, the pair were handed the traditional batons of command by Aymara amautas amid prayers and offerings delivered to Pachamama , the Andean goddess of fertility. The official inauguration act took place on 8 November in La Paz. On 28 October, Foreign Minister Karen Longaric confirmed that Morales would be allowed to return from exile to attend
2346-629: A process with the WTO in order to compel Johnson & Johnson to waive its vaccine patent, allowing the Canadian firm Biolyse Pharma to produce fifteen million doses of the Janssen vaccine . In order to "protect public health and prevent its loss or deterioration", Arce enacted Law N° 1359, the Health Emergency Law , on 17 February 2021. The policy came into effect despite the lack of
2484-461: A rate of 1.50%, while those exceeding ARS 300,000,000 will be taxed at a rate of 1.75%. Before FY2021, for assets held within Argentina, the tax is progressive from 0.50% on assets above ARS 3,000,000 (approx. US$ 32,000 at April 2021 official exchange rate) to 1.25% on assets above ARS 18,000,000 (approx. US$ 193,000 at April 2021 official exchange rate). For assets held outside of Argentina,
2622-654: A roster of countries that have documented instances of revenue collected from wealth taxes (the data is limited to 1965-2021). A total of eight countries (Austria, Denmark, Finland, Germany, Netherlands, Norway, Sweden and Switzerland) were known to have collected revenue through a wealth tax in 1965. In the ensuing decades, the number of countries reporting wealth tax revenue increased gradually and reached its peak in 1995, with 12 countries (Austria, Denmark, Finland, France, Germany, Iceland, Italy, Netherlands, Norway, Spain, Sweden and Switzerland) reporting revenue generated from this form of taxation. Although, as of 2021, only five of
2760-621: A series of meetings with various political, governmental, and judicial authorities to assess the state of the Bolivian judicial system, concluding with a personal encounter with Arce. In his preliminary observations, the rapporteur lamented that the prison system failed to comply with the UN's Mandela rules and that the judiciary faced serious shortcomings, especially regarding women's access to justice. García-Sayán concluded that "in Bolivia, justice
2898-601: A similar manner by the Senate was expected. The proposed law faced backlash from the opposition, who considered it "draconian" due to the alleged extraordinary powers given to government agencies to conduct investigations into individuals, empowering political persecution . Senator Andrea Barrientos pointed out that its lack of a definition for "suspicious operations" allowed the Financial Investigations Unit (UIF) and Prosecutor's Office to investigate
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#17327914008493036-667: A speech at the Ibero-American Summit held in Andorra, Arce called on World Trade Organization (WTO) and the World Intellectual Property Organization to release patents on vaccines and medications meant to combat COVID-19. He denounced the "hegemonic pharmaceutical industry" for, in his view, harming "billions of human beings" by maintaining patents on life-saving medication and demanded that they release their anti-COVID drugs into
3174-439: A suspension of the mandate until the twenty-sixth. By 19 January, continued mobilizations and some street clashes by anti-vaccine groups led the government to permanently suspend the policy to avoid "unnecessary measures of violence". The move was criticized by numerous regional authorities of the opposition, many of which announced that they would maintain their own vaccine passport measures in place. Political analysts noted that
3312-444: A tax called onroerendezaakbelasting , which is based on the estimated value of the real estate they own. This is a local tax, levied by the city council where the property is located. 0.7% (municipal) and 0.15% (national) a total of 0.85% levied on net assets exceeding 1,500,000 kr (approx. US$ 170,000 ) as of 2019. For tax purposes, the value of the primary residence is valued to 25% of the market value, secondary residences to 90% of
3450-410: A temporary wealth tax reintroduced in 2010 for four years. The tax was levied at a rate of 1.5% on net assets exceeding 75,000,000 kr for individuals and 100,000,000 kr for married couples. Similar to Iceland, Denmark taxed household income above a certain exemption threshold, which was about the 98th percentile of the wealth distribution, until 1997. A dozen OECD countries imposed similar taxes until
3588-469: A variety of textile designs from the various regions of Bolivia. Arce assured that representing "the identity of each Bolivian is the most important thing so that the country moves forward, integrated, united, and inclusive". To mitigate the effects of the pandemic and reactivate domestic markets, Arce enacted a "Bonus against Hunger" totaling Bs1,000, benefiting some four million unemployed Bolivians above eighteen and below sixty years of age. The program
3726-490: A wealth tax is an inherently counterintuitive way to foster economic growth. Richard Epstein, a senior fellow at the Hoover Institution , contents, "The classical liberal approach wants to simplify taxation and reduce regulation to spur growth. Plain old growth is a much better social tonic that the toxic Warren Wealth Tax." There are many arguments against the implementation of a wealth tax, including claims that
3864-421: A wealth tax with a high threshold, would have the benefit of mainly targeting individuals who have a high degree of liquid assets, circumventing the liquidity problem of small and medium sized businesses and less wealthy individuals. Moreover, they argue that such a tax would not necessarily reduce innovation since innovation is mostly done by young people who haven't acquired a big fortune yet. This must be seen in
4002-535: A wealth tax would be unconstitutional (in the United States), that property would be too hard to value, and that wealth taxes would reduce the rate of innovation. Luis Arce Luis Alberto Arce Catacora ( Latin American Spanish: [ˈlwis alˈβeɾto ˈaɾse kataˈkoɾa] ; born 28 September 1963), often referred to as Lucho , is a Bolivian banker, economist, and politician serving as
4140-435: A wealth tax's potential revenue in the United States vary. Several Democratic presidential candidates in the 2020 election have proposed wealth tax plans. Elizabeth Warren , for example, has proposed a wealth tax of 2% on net wealth above $ 50 million and 6% above $ 1 billion . The conservative-leaning nonprofit Tax Foundation estimates revenue generated by Senator Warren's proposal would total around $ 2.6 trillion over
4278-715: Is a capital levy ). Typically, wealth taxation often involves the exclusion of an individual's liabilities, such as mortgages and other debts, from their total assets. Accordingly, this type of taxation is frequently denoted as a net wealth tax . As of 2017 , five of the 36 OECD countries had a personal wealth tax (down from 12 in 1990). Proponents often argue that wealth taxes can reduce income inequality by making it harder for individuals to accumulate large amounts of wealth. Many critics of wealth taxes claim that wealth taxes can cause wealthy people and businesses to move their wealth to lower tax jurisdiction (such as tax havens ). The Global Revenue Statistics Database presents
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4416-458: Is a stub . You can help Misplaced Pages by expanding it . Wealth tax A wealth tax (also called a capital tax or equity tax ) is a tax on an entity's holdings of assets or an entity's net worth . This includes the total value of personal assets, including cash, bank deposits, real estate, assets in insurance and pension plans, ownership of unincorporated businesses , financial securities , and personal trusts (a one-off levy on wealth
4554-514: Is a high wealth threshold to limit direct taxation on small business and entrepreneurship. The academic literature on the effects of wealth taxation on investment incentives are inconclusive in the United States; Saez and Zucman assert there are three reasons wealth taxes in European countries are weak comparisons to the United States when analyzing potential effects on investment. First, they claim tax competition between European countries allows for individuals to avoid taxation by allocating assets to
4692-507: Is a tax on the yield of wealth, it qualifies as a wealth tax, since the actual yield (whether positive or negative) is not taken into account in its calculation. Up to and including 2016, the rate was fixed at 1.2% (30% taxation over an assumed yield of 4%). From the fiscal year of 2017 onwards, the tax rate progresses with wealth. See Income tax in the Netherlands . In addition to the vermogensrendementheffing , owners of real estate pay
4830-428: Is also unclear". A 2022 study found that wealth taxes are most likely to be implemented in the aftermath of major economic recessions. The official term used to denote the wealth tax in Argentina is "Impuesto sobre los Bienes Personales". On 31 December 2021, Argentina’s tax authorities published General Resolution 912/2021, which introduces new modifications to the country’s wealth tax. The modifications made to
4968-520: Is far from the people" and announced that he would expedite the schedule for his official report, bringing it forward to June 2022 rather than 2023, as originally planned. Despite a comfortable electoral victory in October 2020, the government of Luis Arce was viewed as fragile in September 2021. It enjoyed broad support among the lower-paid sectors of the population, such as peasants and miners, but
5106-435: Is not productively employed. Thus, a wealth tax can be viewed as a tax on potential income from capital." Net wealth taxes can complement rather than replace gift taxes, capital gains taxes, and inheritance taxes to increase administrability and the effectiveness of enforcement efforts. In their article, "Investment Effects of Wealth Taxes Under Uncertainty and Irreversibility," Rainer Niemann and Caren Sureth-Sloane found that
5244-438: Is payable by individuals who own real estate assets with a combined value of more than €1,300,000. French residents with global assets and non-residents who own French real estate may be liable for IFI. For French residents, the figure is calculated on all global real estate assets, and for non-residents, the figure is calculated based on the total value of French property and real estate assets only. From 1989 to 2017, France had
5382-415: Is used to broaden the tax base, stabilize the economy, and reduce individual income and other taxes. A wealth tax serves as a negative reinforcer ("use it or lose it"), which incentivizes the productive use of assets (rather than letting assets accumulate without being used). According to University of Pennsylvania Law School professors David Shakow and Reed Shuldiner, "a wealth tax also taxes capital that
5520-544: The Bolivian Workers' Center (COB) regarding an increase in workers' wages. The COB proposed a ten percent raise in the minimum wage and a seven percent increase in the contract salary, while the government countered with a 1.5 percent increase in both. After a period of negotiations, Arce announced that he and the COB had agreed to raise the minimum wage by four percent from around US$ 311 to US$ 327. Meanwhile, workers in
5658-786: The Central Bank of Bolivia , where he spent much of his professional career. From 1992 to 2005, he worked in the International Operations Management of the Central Bank of Bolivia as Deputy Manager of Reserves. Between 1994 and 1995, he was promoted to head of the Department of Information and Publications, of the Research and Analysis Sub-management, under the Management of Economic Studies of
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5796-643: The El Alto International Airport . On 6 December, after a brief layover in Lima, Arce arrived in Mexico, where he joined other exiled authorities, including Morales. Within two weeks of Morales' removal, the transitional government issued the call for snap general elections. The legislation precluded individuals elected in the last two constitutional terms from presenting their candidacies, a clause that explicitly barred Morales from returning to
5934-695: The Higher University of San Andrés before completing his studies abroad at the University of Warwick at Coventry , United Kingdom , where he graduated in 1997 with a master's in economics. He also holds an honorary doctorate from the University of los Andes (UNANDES) and the Franz Tamayo Private University (UNIFRANZ) in Bolivia. Arce spent most of his working life as a public official , beginning in 1987 at
6072-672: The Patujú flower —not the flag—is prescribed as a patriotic symbol of the State by the Constitution. Upon inaugurating his new cabinet on 9 November 2020, Arce pledged to re-establish the Ministry of Cultures . The office was established in 2009 during the Morales administration, but the Áñez administration had abolished it in June to reduce government expenditure. The reconstituted ministry—dubbed
6210-604: The Russian Direct Investment Fund reached an agreement to supply Bolivia with 5.2 million doses of the Russian Sputnik V vaccine , enough to immunize 2.6 million people with two doses. The government granted emergency approval for the vaccine on 6 January 2021, with the first shipments arriving later that month. Immunization for individuals over fifty years of age began on 13 May. Arce, then-fifty-seven, initially stated that he "intended to be
6348-620: The presidential sash . Áñez had removed the flag from the garment, though she maintained it as an official symbol of the State in all government acts, as mandated by the Constitution . On the other hand, Arce faced criticism for retiring the flag of the Patujú flower —emblem of the eastern indigenous peoples—as a co-official flag, alongside the Wiphala and national tricolor , from official acts of government, as his predecessor had done. Only
6486-529: The solidarity tax on wealth ( impôt de solidarité sur la fortune , ISF), an annual progressive wealth tax on any net assets above €800,000 for those with total net worth of €1,300,000 or more. Marginal rates ranged from 0.5% to 1.5%. In 2007, it collected €4.07 billion, accounting for 1.4% of total revenue. Two types of wealth taxes are imposed in Italy. There is a tax called vermogensrendementheffing . Although its name ( wealth yield tax ) suggests that it
6624-515: The 1990s, but the Danish wealth tax was the highest of its kind. Until the late 1980s, the marginal tax rate on wealth was 2.2 percent, leading to a very high rate on the return on wealth. After minimizing the tax for some years, the Danish government eventually abolished the tax altogether in 1997. Some other European countries have discontinued this kind of tax in recent years: Germany (1997), Finland (2006), Luxembourg (2006) and Sweden (2007). In
6762-399: The 36 OECD countries continue to implement the wealth tax on individuals. The five countries are Colombia, France, Norway, Spain and Switzerland. There are jurisdictions of sovereign nation states that require declaration of the taxpayer's balance sheet (assets and liabilities), and from that ask for a tax on net worth (assets minus liabilities), as a percentage of the net worth, or
6900-619: The 67th president of Bolivia since 2020. A member of the Movement for Socialism , he previously served as minister of finance—later minister of economy and public finance —from 2006 to 2017, and in 2019. Born in La Paz , Arce graduated as an economist at the University of Warwick . His lifelong career in banking and accounting at the Central Bank of Bolivia prompted President Evo Morales to appoint him as minister of finance in 2006. For over ten years as Morales' longest-serving minister, Arce
7038-664: The American Economy Magazine ranked Arce the region's 8th-best minister of the economy out of 18. As the minister of economy, Arce maintained a relatively low profile. Christopher Sabatini, a senior researcher fellow for Latin America at Chatham House and founder of Americas Quarterly , called Arce "one of the few technocrats in MAS". "He's level headed" and "doesn't engage in inflammatory rhetoric", Sabatini wrote. Bolivian media often credited Arce with steering
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#17327914008497176-461: The Bolivian socialist government of President Luis Arce approved a wealth tax on resident and non-resident individuals with a net fortune of over 30 million Bolivian Boliviano. The tax is progressive with tax rates in the range of 1.4% to 2.4% and includes both domestic and foreign assets. The tax went into effect from 2020 onwards On 1 January 2019, the Senate passed a tax reform bill that includes
7314-596: The Central Bank of Bolivia. Arce also started working in academia as an undergraduate and postgraduate professor at various Bolivian public and private universities. He has given lectures at universities in Europe , North America , and South America , including Columbia University in New York , the University of Buenos Aires , and Harvard University . On 23 January 2006, President Evo Morales appointed Arce minister of finance. Three years later, he assumed command of
7452-424: The Central Bank to return an International Monetary Fund (IMF) loan totaling US$ 327 million previously granted to the Áñez government as aid for the economic crisis. Aside from the base price of paying back the loan, the move additionally cost the country another US$ 24 million in interest and commissions. The Central Bank justified that the government's decision was "in defense of [Bolivia's] national sovereignty", as
7590-555: The Colombian President Gustavo Petro enacted Law 2277 of 2022, which contains the tax reform proposals previously approved by congress. A new wealth tax will be introduced as a permanent tax on individuals with net worth as of 1 January of the relevant tax year exceeding 72,000 UVT. This amount will be calculated as the aggregate value of assets owned (real estate, investments, vehicles, financial products, accounts with financial institutions, etc.,), less
7728-504: The European Union consider Añez as a political prisoner and condemn "‘the arbitrary and illegal detention of former interim President Áñez, two of her Ministers, and other political prisoners’ and called ‘on the Bolivian authorities to release them immediately and drop the politically motivated charges against them’. For its part, the U.S. State Department also considers Áñez a political prisoner. The need for urgent judicial reform
7866-631: The Judicial Council, Marvin Molina; of the Constitutional Court, Paul Franco, the State attorney general, Wilfredo Chávez ; and the prosecutor general, Juan Lanchipa. The commission faced complaints from numerous groups, mainly due to the lack of presence of any independent representatives. Mujeres Creando noted that, in its present composition, the commission could "become politicized". Jurist Juan del Granado lambasted it for
8004-543: The Ministry of Cultures, Decolonization, and Depatriarchalization—was created through Supreme Decree N° 4393 on 13 November, and Sabina Orellana was appointed to head it on 20 November. On 13 January 2021, Arce instituted the Chakana cross as the government's official logo, replacing the previous logo promulgated by Áñez after just a year in use. The cross displays twenty-four fabrics, symbols, and textures, representing
8142-720: The Public Productive Company for the Industrialization of the Bolivian Coca Leaf (KOKABOL), charged with producing and marketing products derived from coca. The decree establishing the state-owned enterprise —based in Sacaba with planned branches throughout the national territory—also authorized the Ministry of Economy to make an initial "capital contribution" of approximately US$ 8.9 million for its development. On 30 December 2020, Arce and
8280-514: The Tax Foundation estimates 2020 presidential candidate Senator Bernie Sanders ' wealth tax plan would collect $ 3.2 trillion between 2020 and 2029. Previous proposals for a wealth tax in the United States had already existed. Eileen Myles proposed a net assets tax in her presidential campaign in 1992 , as did Donald Trump during his presidential campaign in 2000 . A net wealth tax may also be designed to be revenue-neutral if it
8418-942: The United Kingdom and other countries, property (real estate) is often a person's main asset, and has been taxed – for example, the window tax of 1696, the rates , to some extent the Council Tax . In order to bridge the wealth gap between rich and poor in Germany, the Social Democratic Party of Germany called for a nationwide wealth tax to be reintroduced in 2019. According to the proposed tax reform, wealthy households would be required to pay an extra tax between 1% and 1.5%. A single household would need to pay 1% of their net worth on every euro surpassing €2 Million and married couple would have to pay for every euro surpassing €4 Million. A married household with
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#17327914008498556-412: The United States. Some extremely wealthy people use their assets in unproductive ways. For example, an entrepreneur could generate much higher returns (though could conversely lose much more capital operating on leverage) than a wealthy individual with a conservative investment such as United States Treasury Bonds. A wealth tax could lead to negative effects on investment, saving, and economic growth. In
8694-419: The adjusted tax on securities accounts law applicable from 26 February 2021, with the first reference period ending on 30 September 2021. A solidarity tax of 0.15% is now applicable on securities accounts that reach or exceed €1,000,000 without regard to the number of accountholders, and the tax amount is limited to 10% of the difference between the taxable base and the threshold of €1,000,000. In December 2020,
8832-422: The article, "Economic effects of wealth taxation," Kyle Pomerleau states, "A wealth tax, even levied at an apparently low annual rate, places a significant burden on saving." The degree of this impact on savings and investments is reliant on the openness of the United States economy. A wealth tax would shrink national saving and increase foreign ownership of assets. The potential decrease in national savings leads to
8970-418: The campaign, Arce characterized himself as a moderating force, a proponent of his party's socialist ideals but not subservient to its leader, Morales. In a substantial victory, Arce won fifty-five percent of the popular vote. Inaugurated on 8 November 2020, Arce's presidency brought Bolivia back in line domestically and internationally with its traditional position under Morales and away from the rightward shift
9108-513: The ceremony. However, the following day, Longaric retracted the offer, stating that "Morales has been hostile to the Bolivian democratic process and his presence in the country will generate social and political tension". Also not in attendance was still-president Jeanine Áñez, who left La Paz and retired to her residence in Beni a day before the end of her mandate. Despite initially stating that he would not go, Mesa later announced his intent to attend
9246-463: The context that most of the wealthiest people in the US are older than average. Additionally, they argue that large established businesses use some of their wealth to retain market power, reducing innovation and competition. Therefore, a wealth tax with a high tax payable threshold could potentially increase innovation. Further proponents for a wealth tax claim it could have positive effects on investment in
9384-522: The countries that raised revenue from net wealth taxes on individuals in 2019 with net wealth taxes accounting for 1.1% of overall tax revenues in Norway, 0.55% in Spain, and 3.6% in Switzerland for 2017. According to an OECD study on wealth taxes, it is "difficult to firmly argue that wealth taxes would have negative effects on entrepreneurship. The magnitude of the effects of wealth taxes on entrepreneurship
9522-415: The country but in term of investment, the gains of this reforms has been traduced in an increasing of dividend on capital earnings (37.4 billion from non-financial society had been paid) and not on direct investment on corporate (see “Capital flight”). In average and from different studies, those fiscal reforms benefited more to top-wealthier households. For Ben Jelloul and al. (2019), the reforms benefit for
9660-574: The country". Morales himself announced his decision to resign a few hours later. Soon after resigning, Arce took refuge in the Mexican Embassy in La Paz, where he was granted asylum by the Mexican government . Given his medical history, the interim government of Jeanine Áñez granted him and his wife safe-conduct to leave the country. Nonetheless, Arce denounced that he had received harassment from police while attempting to board his flight at
9798-514: The country's GDP , reversing the previous year's historic decrease of 8.8 percent. In a speech commemorating Plurinational State Day on 22 January 2022, Arce lauded his economic achievements, pointing out that Bolivia was the third fastest-growing economy in the region and highlighting that the country suffered the lowest inflation rate in South America at just 0.9 percent. Other positive aspects he pinpointed were that Bolivia had registered
9936-455: The economy in the face of the health crisis, Arce's ability to conduct its growth was hampered by a vaccine hesitant population, which prolonged the pandemic's economic ramifications. Among the biggest challenges of the Arce administration was the urgent need for judicial reform in the country, which he pledged to address but was forced to delay on multiple occasions. Luis Alberto Arce Catacora
10074-401: The effects of wealth taxation on investment mainly depends upon the tax method employed and the broadness of the wealth threshold for taxation. Niemann and Sureth-Sloane found that, "Broadening the wealth tax base tends to accelerate investment during high interest rate periods." Caren Sureth and Ralf Maiterth concluded that wealth tax revenues from entrepreneurs may decrease in the long term and
10212-645: The end of its 120-day term, the commission's investigation had led to the dismissal of ten judges and eight prosecutors. A total of fifty arrest warrants were issued through the Prosecutor's Office, leading to the recapture of twenty-one illegally released criminals. Following the conclusion of the commission's work, Arce promulgated the Law for the Protection of Victims of Femicide, Infanticide, and Rape of Infants, Girls, Boys, or Adolescents . The legislation expanded
10350-418: The fact that it was entirely conformed of members of the MAS when "it was the MAS that since 2011 took over the judicial branch with its militants ... . So who will investigate whom?" Opposition senator Andrea Barrientos noted that of the ten commission members, only one was actually a woman: "Pure men want to solve how they kill us women. They are an embarrassment!". Eduardo Rodríguez Veltzé, who presided over
10488-670: The formation of the Rape and Femicide Case Review Commission set to meet on 4 February with the aim of issuing conclusive results within a maximum period of 120 days. The commission was initially made of: the minister of the presidency, María Nela Prada ; of justice, Iván Lima; the president of the Chamber of Senators, Andrónico Rodríguez ; of the Deputies, Freddy Mamani Laura ; of the Supreme Tribunal of Justice , Ricardo Torres; of
10626-502: The government would seek to address these issues at a justice summit scheduled for March. Through this, the president expressed his desire that Bolivia "become a model of justice in the Latin American region". At the government's invitation, Bolivia received an official visit from Diego García-Sayán , United Nations special rapporteur on the independence of judges and lawyers. Between 15 and 22 February, García-Sayán conducted
10764-506: The government's speed in conceding defeat indicated a weakness when faced with popular discontent from the MAS' political base compared to protests from the opposition: "The MAS is afraid ... that a real opposition can be generated ... , and the best way to try to avoid that is to back down". As president, Arce reincorporated the Wiphala —flag of the indigenous peoples of the Andes—into
10902-520: The health and education sectors received a three percent salary increase. Vice Minister of Budget Zenón Mamani noted that other public and private sector workers could also negotiate their salaries with their employers "on the basis of three percent". Arce officially codified the wage increase into law on 1 May as part of a ceremony celebrating Labor Day in Oruro . At the event, the president also signed three other decrees into law, including granting workers
11040-566: The health emergency. Doctors' unions viewed this as a restriction on their right to protest. On 18 February, the National Health Council of Bolivia (CONASA) declared an indefinite general strike in opposition to the law. In response, Arce issued Supreme Decree N° 4542 on 14 July, which regulated the original law by allowing the government to impose sanctions and administrative measures as well as criminally prosecute those who suspend or interrupt health services. The regulation
11178-963: The inauguration. However, he and the entire CC bloc left the hemicycle of the Plurinational Legislative Assembly prior to the end of the ceremony as an act of protest against the two-thirds regulation. As such, the only former president to attend the entire event was Eduardo Rodríguez Veltzé . Foreign dignitaries to the event included three presidents, fifteen international delegations, and seventeen foreign social organizations. Presidents Alberto Fernández of Argentina, Iván Duque of Colombia, and Mario Abdo Benítez of Paraguay, as well as King Felipe VI of Spain, all attended. Chilean President Sebastián Piñera declined his presence in order to focus on urgent government matters after initially having announced that he would attend; Foreign Minister Andrés Allamand arrived in his stead. Venezuelan President Nicolás Maduro's presence
11316-497: The income tax rate under the ISF was stable overall, within the top 0.1% of income, the income tax rate under of the IFI declines for the wealthiest and falls to 0.6% for the top 0.01%.” Broadly, this reform largely benefits to the 0.1% wealthier and did not make this wealth tax more progressive as it was supposed to be. In fact, it reduced the number of accountable people of wealth tax leaving
11454-452: The incumbent administration was settling a clear policy on coca production. Each of Arce's predecessors had taken radically different approaches on the matter. Throughout his three terms, Morales' administration worked to recognize coca cultivation as a legitimate source of income. His government implemented a "community coca control" program that sought to work directly with cocaleros to regulate legal production. Following his resignation,
11592-671: The last to be vaccinated". However, he ultimately chose to receive his first dose of the Sputnik V vaccine at a hospital in El Alto on 24 May as a "signal for the population". Arce was given his second dose at the La Paz Health School on 22 October, where he reiterated his call for Bolivians to get vaccinated. In addition to Sputnik V, Arce's government also signed a contract with the Serum Institute of India for
11730-595: The latest on) 30 September 2018, for which the tax had to be paid by 30 August 2019. The second taxable period runs from 1 October 2018 to 30 September 2019. In October 2019, the Belgian Constitutional Court issued a decision annulling this tax on securities accounts, with effect as of 1 October 2019. However, Belgium now re-introduced the annual tax on securities accounts law with some modifications in February 2021. The Belgian Parliament adopted
11868-420: The leaf. On 11 January 2022, in commemoration of National Coca Chewing Day, the government announced its intent to sponsor the production of "toothpaste made from coca". Certain alkaloids contained in the leaf have been known to neutralize cavities. The first step in the project was the establishment of a factory to produce the toothpaste, with Arce stating that "later others will come". In June, Arce established
12006-407: The liabilities and debts. The tax will apply to the worldwide assets of resident individuals; nonresident individuals will be subject to wealth tax only on their Colombian assets. The tax rate is between 0 and 1,5% until 2026 and will be between 0 and 1% FY 2027 onwards. Since 2018, France has had a wealth tax based on real estate ( impôt sur la fortune immobilière [ fr ] , IFI). It
12144-592: The loan was conditioned on certain economic policies, and the Constitution prohibits the acceptance of such impositions by foreign institutions. In a letter to the Legislative Assembly, the IMF denied that fact. Writing for Americas Quarterly , Richard Lapper stated that the determination seemed "[more] influenced by the need to discredit the previous government, rather than any kind of broader economic logic"—on 28 June, Carlos Schlink, former vice minister of
12282-527: The lowland Chapare . According to some experts, around thirty percent of coca cultivated in the Yungas is used to make cocaine , while ninety percent produced in the Chapare is converted into the drug. Morales' government legalized the cultivation of coca in the Chapare in 2017, a decision criticized by Yungas farmers, who said the product was "surplus coca". During his administration, Arce fostered new uses for
12420-752: The market value, while working capital such as commercial real estate, stocks, and stock funds are valued at various percentages. The Conservative Party , Progress Party and the Liberal Party have stated that they aim to reduce and eventually eliminate the wealth tax. There is a tax called Patrimonio . The tax rate is progressive, from 0.2 to 3.75% of net assets above the threshold of €700,000 after €300,000 primary residence allowance. The exact amount varies between regions. A progressive wealth tax that varies by residence location. Most cantons have no wealth tax for individual net worth less than SFr 100000 (approx. US$ 100,000 ) and progressively raise
12558-547: The morning of 19 October indicated that Arce had won 52.4% of the vote, enough to win the election outright without a runoff. Arce and his party declared victory, which Áñez soon confirmed on Twitter. Carlos Mesa, Arce's primary opponent, conceded the election at a news conference, saying that initial counts showed a "strong and clear" win for Arce. The final tally gave Arce 55.1% of the vote and Mesa 28.8%. Bolivian newspaper El Deber called Arce's victory "clear and crushing" and praised him for his conciliatory statements after
12696-491: The nation through a period of economic growth. His policies were salient in slashing Bolivia's poverty rate during his terms and facilitating large amounts of economic growth as a result of rising gas exports. On 24 June 2017, Arce was forced to give up his position and travel to Brazil to undergo surgery to treat severe kidney cancer . He remained there for a mandated recovery period before returning to his post as minister of economy on 23 January 2019. In late 2019, Bolivia
12834-408: The new Ministry of Economy and Public Finance . Some Bolivian media called Arce the mastermind of Bolivia's economic resurgence. He oversaw Bolivia's nationalization of hydrocarbon, telecommunications, and mining companies, as well as the creation of BancoSur . He oversaw the rapid expansion of the Bolivian economy, with GDP increasing by 344% and extreme poverty reduced from 38% to 15%. In 2011,
12972-535: The new legislation would allow the government to collect Bs100 million (US$ 14.3 million) in taxes from 152 registered individuals. By 2021, it was announced an amount of approximately Bs240.1 million from 206 registered individuals had been collected, an overperformance of 240.1 percent from the initial goal. Of the amount collected, Bs237.2 million came from citizens residing in the country—206 taxpayers—while Bs2.9 million came from those living abroad—six taxpayers. On 18 February 2021, Arce announced that he had ordered
13110-464: The next 10 years. Separate estimates from campaign advisors and economists Emmanuel Saez and Gabriel Zucman put the revenue at about 1% of GDP per year, in alignment with USD revenue estimates. These estimates put Senator Warren's tax plan revenues at about $ 200 billion in 2020. The sum of United States tax revenues in 2018 were $ 5 trillion in 2018, meaning the tax collected by this plan would be equal to 4% of current tax revenues. Additionally,
13248-405: The ninth decile of income distribution and the “IFI” represents one over two household in the wealthiest 0.01%. Therefore, in the general tax system, the “IFI” contributes, as did the ISF, to make the tax system more progressive. But this progressivity has limits: “the IFI represents on average 0.1% of income around the ninth decile and 1.2% of income of 0.1% of very well-off households in 2018. While
13386-400: The now-defunct Supreme Court , stated that the "population expects solutions, not commissions" and implored Arce to "summon the organs of power"—including the opposition—in order to achieve popular consensus on structural reform of the country's judiciary. In response to criticism, Arce expanded the size of the commission to include six more women, with Prada designated as the body's head. By
13524-567: The opposition. Arce officially became president-elect of Bolivia on 23 October 2020, after the completion of the official vote count and an announcement by the TSE. On the night of 5 November, MAS spokesman Sebastián Michel denounced an attack committed against president-elect Arce. The statement came after a stick of dynamite was detonated at the party's campaign headquarters in La Paz. Though Arce suffered no physical damages, Michel pointed out that Arce still had not yet received state protection. As
13662-431: The option to request the prompt dispatch of processes within a period of ten days. Courts failing to comply with these may face criminal proceedings for delaying justice. At the inauguration of the judicial and constitutional year on 3 January 2022, Arce committed his management to judicial reform, stating that the current state of the judiciary was "obsolete ... discriminatory, insensitive, and exclusive". He noted that in
13800-453: The pandemic and pledged to turn around the nation's faltering economy which he blamed the interim government for having "shattered". In addition, he criticized the Áñez administration, labelling it a de facto government that led an "internal and systematic war against the people". At the same time, he promised to "govern with inclusion ... , hoping to be remembered as the government that restored hope and social justice". A pressing issue for
13938-400: The payments. A further 20,409 individuals received their bonus between April and May, totaling 4,035,773 beneficiaries nationwide. The Ministry of Economy reported that a total of Bs4,305 million were allocated to the population during the course of the program. Shortly into his term, Arce announced a series of policies aimed at rectifying what he viewed as erroneous economic decisions made by
14076-403: The plan that is in place, but it generally can be modeled as R = t × w {\displaystyle R=t\times w} , where t represents the tax rate and w is the amount of wealth affected by that tax rate. Many plans include tax brackets , where a certain portion of the individual's wealth will be taxed at a given rate and any wealth beyond that amount will be taxed at
14214-405: The presidency. As a result, the MAS was tasked with selecting a new presidential candidate from among its ranks, a process that took place in Argentina, where Morales took asylum from Mexico. On 19 January 2020, a majority of the over fifty party delegates elected Arce as the MAS' presidential candidate from a list of four pre-candidates. Of the runner-ups, former foreign minister David Choquehuanca
14352-403: The president of the party. Most public opinion polls showed Arce with a lead, but not one big enough to avoid a November runoff. By election night, the divided candidates of the right had managed to partially consolidate around former president Carlos Mesa as Áñez and former president Jorge Quiroga dropped out. Early results favored Mesa, but polling firm Ciesmori's quick-count of the vote on
14490-400: The previous two years, only forty-six percent of judicial cases had been resolved, with sixty-five percent of those deprived of liberty—approximately 11,000 people—being in preventative detention without a sentence. Additionally, he pointed out that sixty-two percent of the nation's courts remained located in cities, leaving around 1.3 million people without access to justice. Arce pledged that
14628-606: The public domain for use by all nations. At the initiative of the Arce government and the United Nations Development Programme , Bolivia convened the forum "Release of patents and intellectual property considerations in the context of COVID-19", hosted by the Public University of El Alto on 13 May. At the forum, the attending parties issued a call for the suspension of intellectual property rights on vaccines. Days earlier, Arce initiated
14766-526: The punishment for both rapists and corrupt officials, with an up to twenty-year sentence for judges found to have acted unlawfully and a ten-year sentence for prosecutors, judges, and police found guilty of acting against victims. House arrest was eliminated as a means of confining accused rapists, and delays in the judicial system could no longer be cited as a reason for the cessation of preventative detention. To prevent long wait times in judicial processes—often lasting multiple years—contending parties were granted
14904-408: The result, while also stating that the new president will have to appease MAS's radical wing. Writing on Los Tiempos , Oscar Díaz Arnau attributed Arce's victory to MAS's strong support in rural areas, the weakness of Mesa's candidacy, Arce's moderation, lack of connection between the opposition and rural inhabitants and the candidacy of Luis Fernando Camacho splitting anti-MAS voters and weakening
15042-407: The revenue from a wealth tax may be negative if the wealth taxation thresholds are too low. Saez and Zucman are two economists that worked on the "Ultra-Millionaire Tax" proposed by Senator Elizabeth Warren . In their paper, "Progressive Wealth Taxation," they assert that a potential wealth tax in the United States needs necessary parameters to limit detrimental effects on investment. One parameter
15180-405: The revenues generated from wealth taxes account for about 0.46% of all tax revenue on average in 2018 for countries which have wealth tax schemes in place. However this varies from country to country, the highest would be that of Luxembourg where it accounted for 7.18% of total tax revenue in 2018, the lowest would be Germany where it accounted for 0.03% of total tax revenue in 2018. Estimates for
15318-410: The right to paid leave in the case of a death in the family, marriage , or birthday. The former rival president Áñez was apprehended and charged with crimes related to her role in the alleged coup d'état of 2019; a move decried as political persecution by members of the political opposition. Áñez's nearly fifteen month pre-trial detention caused a marked decline in her physical and mental health, and
15456-536: The seizure of national tax and customs offices. He estimated that the economic damage of the crisis after fourteen days of strikes was costing the government US$ 12 million per day, totaling US$ 167 million by 6 November. Four days later, on 10 November, Arce delivered his irrevocable resignation to the president, justifying that the "irresponsible work of the Plurinational Electoral Organ" made it necessary for him to step down in order to "pacify
15594-466: The solidarity wealth tax, the government of the French president Emmanuel Macron used the first argument of capital flight. The other argument stated by the comity of evaluation of reforms on wealth fiscalism was that the previous wealth tax was not enough progressive for the top 0.1% wealthier. The “IFI” as the “ISF” are wealth tax thus they concerned high earners. A big part of people paying this tax are in
15732-557: The supply of five million doses of the Oxford–AstraZeneca vaccine . With both vaccines combined, Arce stated that the government now had the capacity to fully inoculate the country's entire vaccinable population with two doses. On 11 February, a separate agreement between Bolivia and Sinopharm was reached, providing for the sale of 400,000 doses of the Sinopharm vaccine and an additional donation of another 100,000 doses. During
15870-425: The tax is progressive from 0.70% on assets above ARS 3,000,000 to 2.25% on assets above ARS 18,000,000. The Act of 7 February 2018, which is effectively a "wealth tax", announced an annual tax on securities accounts that imposes a 0.15% annual tax on financial instruments kept in securities accounts that are worth more than €500,000 per account holder. The first taxable period started on 10 March 2018 and ended (at
16008-451: The tax rate on net assets with a top rate ranging from 0.13% to 0.94% depending on canton and municipality of residence. Wealth tax is levied against worldwide assets of Swiss residents, but it is not levied against assets in Switzerland held by non-residents. Swiss wealth tax is regulated on a cantonal basis. All cantons levy a net wealth tax based on the balance of the worldwide gross assets minus debts, and tax rates can vary depending on
16146-539: The tax. Following the COVID-19 pandemic , the richest Colombians will face higher taxes on wages, dividends, and properties, as well as a one-time "solidarity levy" on high incomes. All of which is part of a new bill that was sent to congress in April 2021. The bill aims to collect about 25 trillion pesos ( US$ 6.9 billion ) a year through new taxes and budget restraints, equating to 2.2 percent of GDP. On 13 December 2022,
16284-412: The taxpayer's residency, with maximum rates varying from around 0.13% to 1.1%. Ancient Athens had a wealth tax called eisphora (see symmoria ), and a wealth registry consisting of self-assessments (τίμημα), limited to the wealthiest. The registry was not very accurate. The religion of Islam has a concept sometimes described as a wealth tax called Zakat . Iceland had a wealth tax until 2006 and
16422-426: The top 1% more wealthier household with +5.5 point of disposable revenue. For Madec and al. (2019) it had affected on the top 2% of the wealthier households and for Pasquier and Sicsic (2019), the 5% of the top distribution perceived 57% of the gain of the fiscal reform. Revenue from a wealth tax scheme depends largely on the presence of net wealth and wealth inequality within the target country. Revenue depends on
16560-410: The transitional government. "The neoliberal model that was implemented for eleven months will be dismantled. In 2021 we will have a recovery", he said. On 28 December 2020, Arce enacted Law N° 1357 Tax on Large Fortunes , a permanent yearly wealth tax on those with a personal wealth above US$ 4.3 million. The law established the gradual increase in tax collection, with a 1.4 percent levy on those with
16698-455: The treasury, was detained as a result of a criminal investigation into the loan. Lapper wrote that in August, the government had received a nearly identical loan from the IMF for $ US326.4 million, which had prompted the opposition to accuse Arce of accepting "the same credit that it recently criminalized". Nearing the end of 2021, Arce's economic policies had achieved a 9.4 percent increase in
16836-507: The wealth tax in Argentina entail an augmentation of the non-taxable minimum to ARS 6,000,000. Moreover, residential real estate assets, wherein the owner's daily domicile is situated, shall not be subject to taxation if their worth equals or falls under ARS 30,000,000 (approx. US$ 138,000 at April 2023 official exchange rate) . Additionally, the taxation rate structure has been revised. Assets surpassing ARS 100,000,000 (approx. US$ 460,000 at April 2023 official exchange rate) will now be taxed at
16974-488: The year amid the social unrest the country faced in October and November, culminating in Morales' removal as president soon thereafter amid allegations of electoral fraud . During the interim government of Jeanine Áñez , Arce sought asylum in Mexico and Argentina, where Morales—barred from running again—nominated him as the Movement for Socialism's presidential candidate in the elections scheduled for 2020. Throughout
17112-443: The Áñez government had taken. Domestically, Arce's first year in office saw its greatest successes in combating the COVID-19 pandemic through the procurement of vaccines from Russian and Chinese sources. His government spearheaded an international call for the pharmaceutical industry to waive its patents on vaccines and medications in order to provide greater access to them by low-income countries. Though he succeeded in stabilizing
17250-400: The Áñez government took a hardline approach, announcing its intent to destroy the "very core of drug trafficking". Writing for InSight Crime , journalist Parker Asmann stated that Arce's administration would need to "strike a balance between supporting traditional uses of coca and curtailing drug production and trafficking". The two primary coca-producing regions are the highland Yungas and
17388-470: Was born on 28 September 1963 in La Paz . He is the son of Carlos Arce Gonzales and Olga Catacora, both teachers. Arce grew up in a middle-class family, beginning his school studies in 1968 and graduating from high school in La Paz in 1980. He studied at the Institute of Banking Education in La Paz, initially graduating as an accountant in 1984. In 1991, he received a bachelor's degree in economics from
17526-519: Was chosen as Arce's running mate. Morales assured that the "combination between colleagues from the city and colleagues from the countryside [will] continue this process of change". A week after the announcement of his candidacy, Arce made his return from exile, arriving at the El Alto International Airport on 28 January. Though the Áñez government assured that he would be allowed to conduct his campaign "in tranquility", Arce
17664-504: Was contested by most of the urban middle class as well as by almost all of the upper classes. The opposition thus includes most of the country's de facto powers: the economic elite, the churches, the universities, professional associations and the mainstream media. At the behest of the United Nations , the Arce administration assumed international commitments to combat terrorism and its financing . On 2 July 2021, Arce delivered
17802-488: Was denounced as abusive by her family. On 10 June 2022, after a three month trial, the First Sentencing Court of La Paz found Áñez guilty of breach of duties and resolutions contrary to the Constitution, sentencing her to ten years in prison. Following the verdict, her defense conveyed its intent to appeal, as did government prosecutors, seeking a harsher sentence. However, international organizations such as
17940-452: Was described as "dictatorial" by CONASA and led numerous other health unions, including the Union of Medical Branches of Public Health of La Paz (SIRMES), to declare themselves in emergency and announce further protests against the government. To promote an increase in vaccinations, Arce issued a Supreme Decree N° 4641 on 22 December mandating that individuals provide proof of vaccination or
18078-445: Was dismissed and arrested, accused of prevarication for granting the rapist freedom "without the right to pardon", as reported by Minister of Justice Iván Lima . The news generated outrage across the country. On 31 January 2022, a popular mobilization of women marched through La Paz demanding justice and denouncing several other judges and prosecutors accused of releasing individuals who faced criminal processes for femicide or rape. In
18216-414: Was engulfed by a series of increasingly fierce demonstrations, marches, and protests stemming from allegations of electoral fraud in that year's presidential election . During this period of political instability, Arce was forced to announce the government's suspension of various social benefits in some regions, including retiree pensions and school vouchers , due to the ongoing strikes and blockades and
18354-627: Was funded through a credit from the World Bank , amounting to US$ 54 million, and the Inter-American Development Bank , amounting to US$ 450 million, for a total of US$ 504 million. The distribution period for these payments began on 1 December and expired on 1 March 2021. On 16 April, the deadline was extended to 31 May due to the inability of some beneficiaries to receive their bonus. During the first payment stage between December and March, 4,015,364 people benefitted from
18492-500: Was hailed as the architect behind Bolivia's economic transformation, overseeing the nationalization of the country's hydrocarbons industry, the rapid expansion of GDP , and the reduction of poverty. His tenure was only brought to an end by a diagnosis of kidney cancer , which forced him to leave office to seek extended treatment abroad. Upon his recovery, Arce was reappointed to his position in January 2019 but resigned from office within
18630-586: Was highlighted in the wake of the arrest of Richard Choque , the so-called "sexual psychopath" whose victims approximated seventy-seven women. Choque had been sentenced to thirty years in prison for one such femicide in 2013 but was revealed to have been released in 2019 by Magistrate Rafael Alcón, who granted him house arrest on the grounds of good behavior and alleged incurable illness. Choque went on to commit two more femicides and participated in instances of trafficking and abuse of dozens of women before being rearrested. After this information came to light, Alcón
18768-473: Was immediately met with a summons to testify before the Prosecutor's Office for alleged irregular financial acts authorized by him while he was on the board of directors of the Indigenous Fund. Though the process was ultimately suspended indefinitely, Arce nonetheless denounced the case as "political persecution and judicial harassment". Some MAS opponents accused Arce of being a puppet of Morales,
18906-520: Was the case with Evo Morales during his presidency, an ancestral inauguration act at the Tiwanaku archeological site—a reaffirmation of the indigenous roots of the MAS—was scheduled for Arce. However, due to austerity and biosafety concerns related to the economy and pandemic, it was decided that a formal event would not be held. At dawn on 6 November, Arce and Choquehuanca were symbolically inaugurated at
19044-406: Was vetoed by the interim government due to the fact that it did not recognize his administration. Arce was sworn in as the sixty-seventh president of Bolivia at the front of the Plurinational Legislative Assembly. In his inaugural address, he promised to lead "a new stage in our history ... [in] a government that is for all without discrimination of any nature". He outlined his intent to "defeat"
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