Who wants to be president?
President Lasso has been governing under the mechanism of “cross death” for a little over a month and has sent two economic decrees for the approval of the Constitutional Court. The first one reforms income tax collections to benefit people earning below $3,000 per month, which will imply $200 million less in tax revenues for the fiscal budget. However, the decree also contemplates new taxes on selected entertainment events, online lotteries, and small businesses, which will raise around $130 million. While the negative impact will be immediate, the offset will be effective next year.
The second decree sought to create free trade zones in the national territory. Alleging this decree was not of an urgent economic nature, the Constitutional Court did not approve it, thereby revealing what was evident before: they will not make Lasso’s life easy during his five remaining months as president.
Therefore, Lasso continues to navigate a difficult economic and social situation, although without the additional obstruction and threat from the Assembly. Insecurity and violence continue to pose severe challenges, defying all efforts from the new official team in charge on this front, as well as a new law that allows declaring violent crimes as acts of terrorism.
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