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Ecuador places one-time tax on millionaires to pay for earthquake reconstruction

Ecuador places one-time tax on millionaires to pay for earthquake reconstruction

President Rafael Correa said Ecuador's worst earthquake in decades caused billions of dollars of damage and he is raising sales taxes and putting a one-time levy on millionaires to help pay for reconstruction.

The damage from 7.8-magnitude quake adds to already heavy economic hardships being felt in this OPEC nation triggered by the collapse in world oil prices. Even before the quake, Ecuador was bracing for a bout of austerity, with the International Monetary Fund forecasting the economy would shrink 4.5 percent this year.

In a televised address Wednesday night, Correa warned the nation of a long and costly post-quake recovery and said the economic pain shouldn't fall...

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