Senator Paulina Vodanovic (PS) has called on the Chilean government not to use the concept of national reconstruction as a vehicle to introduce tax reform. The lawmaker expressed her opposition to presenting the project under the label of a reconstruction plan—a move the opposition has dubbed the 'Tutti Frutti Law.'
According to reports from biobiochile.cl, the legislator maintains that reconstruction requires immediate and urgent measures, which do not align with the long-term nature of a tax reform. Vodanovic urged authorities to present the tax reform directly to the public.
Concerns over impact on the middle class
The senator questioned the content of the proposal, noting that the current debate seems focused on providing benefits to large corporations based on the 'trickle-down' theory. Vodanovic, as reported by biobiochile.cl, expressed concern regarding the microeconomic effects these measures could have on Chilean families.
“What will the microeconomic effects be? How will this hit the pockets of Chilean men and women?” the lawmaker asked. Vodanovic compared the potential negative impact of this reform to the previous changes to the MEPCO (special tax for small businesses), warning that the Socialist Party seeks to defend workers and the middle class.
The President of the Socialist Party also backed the stance of Senate President Paulina Núñez (RN), who has requested that legislative projects be kept separate. The goal is to ensure the tax reform is discussed independently of other benefit programs.
The lawmaker proposed that pro-employment, pro-SME, and pro-worker measures be processed through a short, fast, and efficient piece of legislation. This approach would allow for the execution of the growth plan mentioned by Minister Quiroz without delaying tax-related issues.
Finally, Vodanovic confirmed that Socialist Party caucuses submitted a letter to the President yesterday. In the document, they formally requested that tax matters be handled separately from the national reconstruction plan.
