Re: How does El Salvador benefit from making Bitcoin Legal Tender and 0% Tax?
As many of us already know El Salvador sits on $84M dollar unrealised profit from holding since September 2021, A government that completely supports and encourages BTC got me thinking how it is going to work in Long-Term?
I think there's a need for you to read this, also maybe you would have gone over the El-Salvador thread in mkaing this post instead of creating another related discussion on it.
According to Coindesk, El Salvador has an unrealized profit of $84 million. That is the accumulation from 2021. Nayib Bukele mentioned Bitcoin that is obtained not only from purchases. But there are from:
1. From Our Passport Program
2. Revenue from converting
3. BTC to USD for local businesses
4. From Mining
5. Revenue from Government Services
Source:
1. https://www.coindesk.com/business/2024/03/12/el-salvador-is-sitting-on-84m-profit-from-its-bitcoin-holdings/
2. https://x.com/nayibbukele/status/1767323587071947195?s=20
1. From Our Passport Program
2. Revenue from converting
3. BTC to USD for local businesses
4. From Mining
5. Revenue from Government Services
Source:
1. https://www.coindesk.com/business/2024/03/12/el-salvador-is-sitting-on-84m-profit-from-its-bitcoin-holdings/
2. https://x.com/nayibbukele/status/1767323587071947195?s=20
Dropping the tax on Crpyto from 30% to 0% is just beyond me.
A according to what i heard, they are only reducing the rate and not that they are dropping the whole thing to zero, you may have to confirm this as well.
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.
Source
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.
Source