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Looking ahead to a probable Feb 2013 re-election campaign...President Rafael Correa has asked Congress for a new bank tax...to pay for an expanded welfare program.
Banks are rattled...because it imposes a 3% tax on income...and removes a previous 10% tax discount.
The bill...likely to be passed by a Congress also running for re-election...would increase a monthly stipend by $50 for the elderly, single mothers and low income earners.
The bill would raise over $200 million annually.
Recent polling gives Correa 55% of the vote.
