Ecuador proposes bill to address concentration of wealth from land speculation

telesurtv.net reported this bill is the latest in a recent string of proposals put forward by President Correa aimed at addressing the concentration of wealth. Ecuadorean President Rafael Correa is submitting a bill to the National Assembly Monday aimed at targeting “illegitimate” capital gains from land speculation. “Any additional value that is not the result of direct action of the owners of that property, is an illegitimate gain,” said Correa in a dialogue with the press Sunday night. RELATED: Ecuador’s Citizens’ Revolution: Putting People Before Profit The Ecuadorean government conducted a study and found that in the nine largest municipalities in the country, US$600 million was transferred into private hands as a result of land speculation surrounding public investments.

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President Correa cited the example of the headquarters of the Union of South American Nations, known as UNASUR, which was built north of Quito, where the surrounding land increased in value sixfold. The state was forced to spend more to acquire the lands, despite the fact that it had increased in value as a result of public expenditure on construction of the UNASUR building. “This measure is aimed at speculators,” said Correa, who has alleged in the past that people with connections to politicians and with insider information have been among those who have most benefited from this type of speculation. Correa, who has a PhD in Economics from the University of Illinois, specified that the income generated from this new tax will go to local governments, not the federal government. This bill is just the latest in a recent string of proposals put forward by the president aimed at addressing the concentration of wealth and helping steer the country toward socialism. Last week the president proposed a bill that targets the large transfers of wealth between family members, implementing a progressive taxation schedule on inheritances. Read Article