Associated Press

ASUNCION, Paraguay (AP) -- Paraguay is one of the few countries in the world with no personal income tax. That's because congress has specifically delayed it until after President Fernando Lugo leaves office.

So Lugo tried something else to help the poor: He asked soy bean producers to voluntarily pay 6 percent more in taxes on their exports.

Their response came in Tuesday: It's a "no."

Paraguay is South America's third-largest soy producer after Brazil and Argentina. Lugo is still hoping to find some way of tripling the number of poor Paraguayans who get $50 to $100 monthly for keeping their kids in school.

But Paraguay's congress has been reluctant to expand payments to what right-wing lawmaker Carlos Soler calls an "army of beggars."

Copyright 2011 The Associated Press.

Recommended for you