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Thursday, January 3, 2013
Ecuador's new tax on bank profits
Ecuador has a new law with the title "Income Redistribution for Social Expenditure," which will impose new taxes on financial institutions. I often remark on the deceptive titles of US tax legislation (the HIRE Act, the JOBS Act, etc)--which always make the legislation seem obviously to promote social good even while they too often include provisions that do the opposite--see, e.g, Charles Kingson's The Great American Jobs Act Caper. Of course, using the term "redistribution", "social", and maybe even "expenditure" would kill the legislation in its infancy in the US. So I was interested to see new taxes on bank profits cast in this rhetorical language.