Ecuador: Correa Presents Immigration and Inheritance Bills

2015-06-09 15

Ecuador’s President Rafael Correa has just presented two important bills to the National Assembly. The first is immigration legislation to assure that “no human being will be considered illegal in Ecuador.” The measure covers visas, passports and identity documents for foreigners, and reduces the number of visa categories from 18 to four. Correa also presented his new inheritance tax measure that will target the ultra rich, and specifically, large transfers of wealth between family members, implementing a progressive taxation schedule on inheritances starting with 2.5 percent tax on sums above US$35,400 and climbing in increments, up to 77.5 percent on inheritances above US$849,600. The President insisted that inheritances are one of the greatest causes of inequality in Latin America. This measure will inhibit the passing down of wealth that maintains the same families in power, but will not affect the middle class or the poor, he promised. IRS figures reveal that inheritance valued at more than US$1 million affects only between 4 and 13 families nationally. Liz Scherffius reports from Quito for teleSUR.