President Funes Proposes Tax Reform

    The tax reform proposed by President Funes that eliminates income tax for those with the lowest income, has entered the Legislative Assembly. This reform is said to eliminate income tax for those in the lowest tax bracket, keep it the same for those in the middle, and increase it for those in the upper tax bracket.
     At the press conference on Sunday, San Salvador's Archbishop Monsignor Escabar Alas spoke on behalf of the Catholic Church and their stance on this reform. According to him, the Catholic Church is in favor of this reform as long as it contributes to human development and "alleviate[s] the economic crisis among people with greater needs" (DiarioCoLatino).
     According to El Faro, the government's proposal will eliminate income taxes for about 260,000 of those in the low wage/ lower income tax bracket. Most Americans are probably thinking right now 'So who is going to pick up the slack?' Well that would be those in the highest tax bracket such as companies, corporations and individuals that have higher incomes. Many Americans would probably detest this approach because it is too similar to the Robin Hood theme of steal from the rich and give to the poor. However, the Salvadoran government does not view this as stealing from the rich, as the rich are already making an exorbitant amount of money that this increase will hardly make a dent in their overall income. The current taxation, on the other hand, is the difference between an additional meal per day or money towards a child's schooling for those in the lowest tax bracket. Therefore, by eliminating the income tax for those with the lowest income the government will be improving its economy by allowing more money to circulate through the markets and education sectors, which will in turn ensure macroeconomic stability by creating jobs and boosting growth. At  least that is the idea promoted by those in support of this reform.
     In order for this reform to be passed 43 of the 84 deputies in the Legislative Assembly need to vote yes. If this reform is passed it will be the first change in the income tax collection since 1991 (El Faro). Unfortunately, it must be kept in mind that this reform is being introduced during an election period. Which means that many running for re-election will have to face difficult questions from the public regarding its effectiveness and when results can be expected (LaPrensaGrafica). If the public isn't on board, it is doubtful that Funez and the reform will acquire the 43 needed votes (especially considering the 84 deputies voting are most likely among those expected to receive the tax increase).

Spain Complies with Judge Vasquez and Agrees to Request for the Extradition of Military Officers Responsible for the Jesuit Murders

      Three months later, after heavy consideration, Spain finally agrees to fulfill the request made by Judge Eloy Velasco of the Spanish National Court, to request the extradition of the fifteen Salvadoran military suspects in the Jesuit murder case. Spain will be requesting extradition of two from the United States as well as the remaining thirteen from El Salvador for murder, terrorism and crimes against humanity.
      The following are the names of those Spain is seeking to extradite from El Salvador: General Rafael Humberto Larios, former Minister of Defense, and Juan Rafael Bustillo, former commander of the Salvadoran Air Force, sergeants Antonio Ramiro Avalos Vargas and Tomas Castillo Oscar Mariano Amaya Zarpate, Colonel Juan Orlando Zepeda, Francisco Elena Fuentes, Guillermo Alfredo Benavides, Joaquin Arnoldo Cerna, Carlos Mauricio Guzman and Oscar Alberto León Linares, and the lieutenants José Ricardo Espinoza Guerra, Second Lieutenant Gonzalo Guevara Cerritos and Corporal Oscar Mariano Guzman. As well as the two being requested from the United States, Colonel Inocente Orlando Montano and Lieutenant Hector Ulises Cuenca.
        Those that are seeking justice and are in support of Judge Velasco, are hoping that these extradition requests will be respected and honored so as not to have a repeat of the Aug 7 trial when 9 previously arrested soldiers were set free due to a failure to request their extradition before issuing arrest warrants. 

The Vulnerability of Latin America to Climate Change

       The United Nation's Climate Change Conference began at the beginning of this week in Durban, South Africa. 190 nations will be in attendance. As a result of recent weather events representatives of Latin America are attending this conference in search of answers and in effort to persuade other nations to commit to changes that will decrease the vulnerability of Latin America to climate change.The majority of Latin American nations will be taking their positions together with China and other developing nations in joint force called Group 77.
       According to the Climate Risk Index released earlier this week, the countries that are most vulnerable to climate changes are: Guatemala, Colombia, Honduras, Pakistan, Russia . You will notice that three out of the five are Latin American because: "Latin America is highly vulnerable to extreme weather events. We've had masses of ice loss in the Andes that affect water availability for agriculture, (causes), severe storms and flooding in Central America and north-south droughts"(Brazilian coordinator of the World Wild Fund, Carlos). Slavadoran Minister of Environment Herman Rosa Chavez reports that El Salvador, along with the rest of Central America, has decided to take a joint position at the conference in order to gain true recognition of their vulnerability to climate change. Chavez points out that Latin America is one of the few areas left in the world that still has land and water available, and where food production can increase significantly. However, if nothing is done to counter climate change, by 2070 crops will decrease dramatically and areas like Brazil could lose up to 40% of their soybean production (El Mundo). Chavez also points out that Latin America (as has been said since the beginning of the climate change debate) is the home of the world's most significant oxygen producer and South America's water source-the Amazon. Which helps to combat and regulate climate change, and thus, is incentive for the rest of the world to protect Latin America from climate change.
     Group 77's main objective is to get the wealthier nations to renew their commitment to the Kyoto Protocol (expires in 2010) to reduce harmful emissions. In addition to this, they are seeking to enforce the Green Fund that was created in last year's conference in Cancun, to address the needs of those developing countries effected by climate change. "Those who got rich at the expense of sacrificing the global environment must now assume the responsibilities that fit," said Jose Arguello, Argentine negotiator of the G77.
      One of the largest emitters of harmful gases of the Latin American nations is not surprisingly, Brazil, who is choosing to group itself with other more developed developing nations like China, India, and South Africa.
      Another group outside of G77, consisting of other Latin American nations is Los ALBA. Los ALBA is a more ambitious group when it comes to propositions of climate change solutions, and is comprised of the following nations: Cuba, Venezuela, Ecuador, Bolivia, Nicaragua, Antigua and Barbuda, Dominica and St. Vincent and the Grenadines.
       In addition to attending this conference and persuading other nations to act on the climate change issue, El Salvador itself is working towards change. This morning a forum was held by the National Energy Council and the National Center for Agricultural Technology in order to suggest and analyse the region's experience with and development of biofuels(DiarioCoLatino). This is a very sensitive topic, especially to Latin Americans, who view bio fuel as a waste of agriculture that should be used as a food source. With that in mind, Rene Magana the Executive Director of the Center, stressed that this development of biofuel will be done with environment and food security in mind. So far the advances of biofuel in Latin America are by no means great. However, a bill is currently being considered which will provide the legal support that is needed for the introduction of a new energy source.

U.S. Provides E.S. with Naval Support to Fight Drug Trafficking

      At the beginning of this week the United States made a donation to El Salvador's naval forces of seven patrol boats. A representative of the U.S. government explains that this donation was made in order to strengthen the Salvadoran security by matching the capabilities of most naval forces in the region. At the Naval Force installations Defense Minister Jose Atilio Benitez states: "This donation valued at more than five million dollars represents a significant step in the cooperation we have to strengthen the security of El Salvador" (El Mundo). This donation is part of the cooperation between the United States and El Salvador  that falls under the Central American Regional Security Initiative (Carsi) and the Southern Command of Enduring Friendship. Previously under Carsi, the United States ambassador has given an Aponte bomb disposal team to the Salvadoran National Civil Police, and x-ray equipment to the Salvadoran prison system.

      Of the seven vessels, two are "patrol boats attack Justify class Boston Whaler 37-foot length, a Boston Whaler patrol boat type attack guardian of 22 feet in length and four patrol Safe Boat attack, defend class of 44 feet in length." In addition to these seven patrol boats, the soldiers in charge will receive proper training from U.S. personnel to ensure the vessels are used properly. These new boats will increase the navy's speed on water and allow for better performances.

       Although the main purpose of these patrol boats is to help decrease drug trafficking through El Salvador, the boats and their updated technology can also benefit the country in national emergencies like the E-12 storm when rescue teams needed speed and communications to be able to perform rescues and deliver supplies.