El Salvador is about to approve a new law lowering tax rates.  This can lead to foreign direct investment in the country, job creation and economic expansion.  I think there are some risks and challenges in the bold steps they are taking.  Lowering the income tax rate may reduce government revenue.  In many cases, income inequality may be exacerbated, as the wealthy benefit more from tax cuts than low-income individuals.
 Lowering the income tax rate could be a strategic move by El Salvador to attract global investment. The key challenge now is whether this move can sustain the economy long-term in the future.


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