Beatriz Sánchez, a senator for the Frente Amplio party, has warned that the National Reconstruction project—dubbed the 'mega-reform'—puts Chile's fiscal stability at risk. According to reports from latercera.com, the lawmaker noted that the tax redesign proposed by the Executive branch reduces state revenue without presenting a clear plan to offset the loss.
Sánchez questioned the ten-year projection the government is using to reach financial equilibrium. "As it is currently proposed, this tax reform causes the State to collect much less, and there is no clear plan on how to compensate for the loss of revenue," the senator stated during an interview on the programDesde la Redimentación.
The legislator was blunt in her assertion that the proposal favors high-income sectors. "They [the ruling coalition] say, 'don't caricature us,' but it's true: it favors the wealthiest in Chile. Period," Sánchez maintained during an interview with Editor-in-Chief Gloria Faúndez and host Rodrigo Álvarez.
Tensions over legislative negotiations
The senator also denounced a divisive strategy being employed by La Moneda, accusing the government of attempting to drive a wedge between different opposition factions. Sánchez mentioned that the Executive has tried to separate the 'friendly opposition' from other sectors, a tactic she described as an attempt to "leave us out of the discussion."
The Frente Amplio party is scheduled to meet with government representatives this Monday to discuss the processing of the bill, which entered Congress this week. The senator highlighted that this meeting was organized by her parliamentary group rather than by a direct invitation from the Executive, citing a lack of prior dialogue.
Regarding the reconstruction of families affected by recent wildfires, Sánchez rejected the use of these funds as bargaining chips to pass the tax reform. "What we see is a sort of blackmail, where the tax reform is being positioned as a condition for approving any type of resource intended for reconstruction," she declared.
Furthermore, the senator raised concerns regarding potential conflicts of interest within the ministerial cabinet. Referring to the proposed tax cuts, she described the current team of ministers as the "most business-oriented we have ever had," noting that the personal assets of some members could potentially benefit from the proposal.
Finally, Sánchez warned that the government does not have full control over the legislative approval process. Although the Executive has reached agreements with the People's Party (PDG) regarding the legislative agenda, the senator reminded that decisions in the Senate are often decided by razor-thin margins of just one or two votes.
