Lawmakers from Renovación Nacional (RN), the Unión Demócrata Independiente (UDI), and the Partido Nacional Libertario (PNL) have urged the Government to include more robust relief measures for the middle class in the upcoming omnibus bill. According to elmostrador.cl, the initiative, which is expected to enter the Chamber of Deputies this week, could face a one-week delay following observations presented to Ministers Jorge Quiroz and José García Ruminot.
The governing coalition's caucus criticized a "disconnect" between investment promotion policies and the economic reality facing Chilean families. While they agree on the urgent need to reactivate the economy, parliamentarians are seeking to ensure that the package of measures is not limited exclusively to large corporations.
Chamber Speaker Jorge Alessandri (UDI) led the criticism against the Ministry of Finance's technical dossier. In an interview with Tele 13 Radio, the lawmaker noted that the plan lacks direct signals for the average worker.
“The most important thing is to solve the problems facing the middle class and workers, and to move past the 8.2% unemployment freeze we have endured for 38 months,” Alessandri stated. The deputy added that while he sees enthusiasm in investment banks, there is a lack of measures that would, for example, allow for the deduction of education, health, and care expenses from second-category income tax.
Proposals for fiscal and social relief
To secure legislative support, lawmakers have proposed various economic "carrots." The UDI is pushing for 1.3 million salaried workers to be able to deduct health and education costs from their taxable income. Additionally, there have been discussions regarding the removal of VAT on medicines, a proposal also supported by the Partido de la Gente.
Regarding education, the UDI opposes limiting university tuition waivers to those under 30. Instead, they propose an "8-year checking account" model for free tuition, allowing individuals who postponed their studies due to work or family commitments to access the benefit later in life.
From Renovación Nacional, Senator Andrea Balladares and Senate President Paulina Núñez are pushing to eliminate property tax payments for the primary residences of senior citizens. Balladares also suggested relaxing the Maximum Conventional Rate (TMC) to stimulate the financial market and facilitate access to credit for middle- and lower-class sectors.
The Government is seeking to align these various positions before the official presentation of the measures. President José Antonio Kast met with the Chile Vamos and Demócratas caucuses to coordinate legislative strategy ahead of a national broadcast, where he will detail the objectives of the initiative.
