Rafael Correa speaks at a rally in support of his re-election in next year's poll, Quito, November 10.
By Federico Fuentes
November 11, 2012 -- Green Left Weekly -- While European governments continue to impose policies aimed at
making working people pay for a crisis they did not cause, the
Ecuadorian government of Rafael Correa has taken a different course.
“Those who are earning too much will be giving more to the poorest of
this country”, a November 1 Reuters dispatch quoted Correa as saying.
He was announcing a new measure to raise taxes on banks to help fund
social security payments.
Ecuador’s banking sector has registered US$349 million in after-tax profits, a November 8 El Telegrafo article said. “The time has arrived to redistribute those profits,” said Correa.
Reuters reported that by lifting the tax rate on bank holdings abroad
and applying a new tax on financial services, the government hopes to
raise between $200 million and $300 million a year.
The proceeds will fund a rise in the “human development bonus
payment” from $35 to $50 a month. About 1.2 million Ecuadorians receive
the payment, mainly single mothers and the elderly.