President José Antonio Kast has ramped up political efforts to ensure full backing from his coalition ahead of the imminent introduction of his signature reform. This Wednesday, the President will outline the details of the 'National Reconstruction' bill in a nationwide address—an initiative intended to define his administration’s legacy.
To prevent internal fractures, Kast will host a dinner tonight at Cerro Castillo with representatives from the Republican Party, Chile Vamos, and the Democrats. The series of meetings will continue Wednesday morning with a breakfast session featuring members of the National Libertarian Party, led by Johannes Kaiser.
Former deputy Kaiser confirmed the meeting via his X account. "We intend to propose improvements and may offer some criticism; if they want to lower the corporate tax rate to 23%, we should go even further," he said regarding his expectations for the bill.
A flashpoint in tax policy
At the heart of the controversy is the proposed reduction of the corporate tax rate from 27% to 23% for medium and large enterprises. Minister of the General Secretariat of the Presidency, José García Ruminot, recently described this measure as "non-negotiable" in an interview, a stance that has triggered alarm bells within the opposition.
From the Broad Front (Frente Amplio), Deputy Gael Yeomans sharply criticized the proposal. "They are attempting to use the suffering of families who lost their homes in the fires to line the pockets of big business," she stated.
In a similar vein, Senator Daniella Cicardini (PS) argued that the government is prioritizing the wealthiest 1% while the cost of living continues to rise for ordinary citizens. Meanwhile, Communist Party president Lautaro Carmona dismissed the reform as a regressive redistribution that exclusively benefits large-scale capital.
Senate President Paulina Núñez (RN) came to the defense of Minister García Ruminot. While she underscored the importance of the tax cut to the government's success, she acknowledged that there may be room to adjust the implementation timeline to help build a parliamentary consensus.
The government, which aims to have the project passed by September, faces a complex landscape in the Chamber of Deputies. The chair of the Finance Committee, Republican Agustín Romero, acknowledged the difficulty of the legislative process but remains confident in his ability to win over factions within the Democratic Socialism bloc.
Nevertheless, the opposition remains skeptical. PPD caucus leader Raúl Soto warned that the package, which includes over 40 measures, is too broad to be voted on as a single block. "It would be best if the government were open to splitting the bill to prevent the tax debate from contaminating the entire project," Soto concluded.
