Re: El Salvador has become the first country to make #Bitcoin legal tender! 🇸🇻
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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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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I cannot agree with your argument, since lowering the income tax rate in El Salvador will only reduce the revenue in the economic government coffers. But those with low incomes will benefit the most. And the lower the earning rate the more people will move to Bitcoin in any direction. So as per your suggestion there is disadvantage in one aspect but advantage in all other aspects, so I would be in favor of reducing income tax rate. The President of El Salvador, Nayib Bukele, is knowledgeable enough about cryptocurrencies, that the law he passes will be the best for the people. Because he made laws thinking about the people of the country.