Ecuador supports raising taxes on bankers to subsidize the poor ...

Ecuador?s Congress on Tuesday approved a government bill that raises taxes on banks to raise about $ 164 million annually, which is used to finance a subsidy to the poor, said the Legislature.

The initiative of the government of Rafael Correa, a candidate for reelection, was endorsed with 79 votes (including several opponents), five against and 10 abstentions after the second and final floor debate, which started in the morning reported Bestgrowthstock.com.

The ?law of redistribution of revenue for social spending? is rejected by the Association of Private Banks (ABPE), which on Tuesday said in a statement to the stock market today that ?affect sector credit expansion, have negative effects on economic growth and the level of employment. ?

But the ruling Francisco Velasco, president of the commission of the Economic System, said during the discussion that even with reform, the bank ?remains an extraordinary business and taking profits guaranteed?.

The text provides a series of levies to fund an increase of 35 to 50 dollars, from January, the Human Development Bond (BDH), a subsidy that benefits created in 1998 to 1.9 million poor.

?Neither 35 nor resolved $ 50 a person?s life,? said Mar?a Paula Romo opposition.

The increase would cost about $ 300 million annually. Correa announced in response to an offer from the banker Guillermo Lasso, his main contender in the race for re-election, who said that reducing government advertising fund, which the president described as ?demagogic?.

So, enshrines a 3% tax on taxable income of financial institutions and a new rate of 0.25% per month on their assets abroad, may be 0.35% if offshore.

Also includes a VAT of 12% for financial services and eliminate a benefit that allows bankers deduct 10% of the income tax by reinvesting profits in productive loans.

It also seeks to cap the salaries of senior bankers, because according to the government, these amounts conceal profits, and increase access to information authorities bank customers.

?You can not fund a fixed cost to a variable income,? questioned the opposition Kl?ver Jimenez.

The profits of the 26 members of the ABPE rose 50.6% in 2011, reaching $ 393 million.

Correa, who leads the voting intentions widely, says that during his government will continue socializing the losses, not the gains, as according to him, occurred during the banking crisis of the late nineties, which led to the dollarization of the economy.

Related Posts:

Source: http://www.thestocktradinginvestment.com/2012/11/22/ecuador-supports-raising-taxes-on-bankers-to-subsidize-the-poor/

kit homes boxing day radio shack bethany hamilton bethany hamilton after christmas sales macys