Deputy Gatica Critiques Government’s Lack of Political Dialogue Over Mega Tax Reform and Calls for Citizen Engagement

Original article: Diputado Gatica critica falta de diálogo político del Gobierno en proyecto de «megarreforma tributaria» y pide escuchar a la ciudadanía y sus representantes

Deputy Gustavo Gatica (Ind.) expressed deep concern and opposition to the government’s proposal titled «National Reconstruction and Social Economic Development Plan,» after reviewing available information and recent warnings from the Autonomous Fiscal Council.

According to the lawmaker, the initiative, presented as a centerpiece of economic recovery, «lacks solid foundations» and could lead to significant deterioration in the country’s public finances.

It is important to note that, as pointed out by the Autonomous Fiscal Council to the Chamber of Finance Committee, Kast’s proposal could result in persistent fiscal deficits, reaching up to 0.71% of GDP by 2030, highlighting a high-risk scenario for fiscal sustainability.

«The Government aims to push through a large-scale reform without ensuring permanent income to support the committed expenditure. This is not a serious reconstruction plan; it is a project that fails to provide economic assistance to the middle class and could jeopardize Chile’s economic stability,» warned Deputy Gustavo Gatica.

The legislator emphasized that the project has been labeled by various sectors as a veiled tax reform that prioritizes incentives for large investments over the protection of social programs, raising concerns about potential cuts to key public policies.

At this juncture, the District 8 deputy criticized the lack of political dialogue in the initiative’s development, stating that Kast’s government wants to «impose its agenda without building broad agreements.»

«A country cannot be rebuilt without listening to its citizens and their representatives. This project lacks social and technical legitimacy, making it very difficult to proceed. I call on the government to engage in dialogue with all sectors,» Gatica concluded.

Continue reading about this topic:

Fiscal Council: Kast’s Tax Reform Could Have Negative Fiscal Impact Requiring Additional Funding Not Currently Considered

Deputy Hassler Presented Report Identifying 23 Severe Inconsistencies in Kast’s Mega Tax Reform Proposal

Member of the Autonomous Fiscal Council Contradicts Kast: His Government Will Start in Very Positive Macroeconomic Conditions

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