Argentina has approved the wealth tax that will impose a tariff on people with large fortunes in an attempt to boost its revenue. The third-largest economy in Latin America struggling with high inflation and an increase in poverty is heading into its third year of recession.

The “Social Solidarity and Productive Reactivation” Bill was already passed by the lower house and late on Friday, Senators also gave its nod with 42 votes in favor and 26 against.

“This law will allow Argentina to move forward because the situation is really serious,” the Committee on Budget and Finance president Carlos Caserio said. “The emergency declaration is the way to get out of this problem quickly.”

It involves a one-time tax of at least 2% on individuals with assets of more than 200 million pesos ($2.45 million), through which the government aims to collect about $3.7 billion.

“We must find points of connection between those who have the most to contribute and those who are in need,” said ruling party Senator Anabel Fernandez Sagasti on Twitter.

“When QE is no more sufficient, seize it directly from the people. All in the name of Covid,” wrote one Bitcoiner on Twitter.

The proceeds from the tax will be used for medical supplies (20%), SMEs (20%), “social developments” (15%), student scholarships (20%), and natural gas development programs (25%).

“Bitcoin is the only exit door from this nonsense,” added the crypto enthusiast.

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