The president of El Salvador, Nayib Bukele, just announced that he plans on submitting a bill to congress that will nullify the requirement to pay taxes in income derived from tech innovations.
Here’s the tweet..
Next week, I’ll be sending a bill to congress to eliminate all taxes (income, property, capital gains and import tariffs) on technology innovations, such as software programming, coding, apps and AI development; as well as computing and communications hardware manufacturing.
— Nayib Bukele (@nayibbukele) March 24, 2023
Nayib has been making a lot of headlines since he was elected in 2019. Under his leadership, El Salvador became the first country in the world to make Bitcoin legal tender. He has also been getting a lot of praise (and criticism) for his recent crackdown on gang violence in the country.
With a dramatic decrease in regional crime, and these new favourable tax policies, El Salvador might soon become a hub for tech innovation.
Assuming these new tax-cuts will also apply for capital gains on crypto trading/investing, El Salvador will also likely attract wealthy individuals from all over the world (similar to what has been occurring in Dubai).
Contrast Nayib’s welcoming stance to the USA, where Joe Biden wants to hit Bitcoin miners with a 30% tax and where the SEC is relentlessly attacking the crypto industry.
It makes sense, however, that the USA would attack the competition. They benefit the most from the current financial system as the USD currently holds world reserve status (though that’s likely about to change).
Unlimited amounts of Bitcoin can’t be printed up on a whim to cover their excessive spending.
That being said, the fight against decentralized finance seems futile at this point. The tech is here to stay, and it’s what sensible people want. All Biden, his handlers and the attack dog “regulators” will end up doing is driving the innovators off to other, more welcoming jurisdictions (like El Salvador).