The mechanics are well-known. First, the fiscal deficit is inflated, or additional debt is sought. Then, it is announced that the State has reached its limit—the notorious 45% of GDP—and that 'there's no money.' Ultimately, surgical cuts are implemented that spare large domestic and foreign companies while targeting health, education, pensions, and subsidies for the populace. Thus, indebtedness becomes a political weapon.

The Monthly Economic Activity Index (Imacec) has revealed a concerning 1.2% drop in April compared to last year, along with a staggering 11.8% decline in the mining sector, challenging the economic recovery narrative put forth by the government of José Antonio Kast.

Unemployment in Chile's Metropolitan Region has surged to 9.7%, exceeding the national average, highlighting ongoing challenges in the local labor market amid stagnant job creation.

In response to finance minister Jorge Quiroz's criticisms, former minister Nicolás Grau categorically denies any calculation errors in his government’s debt projections and questions the wisdom of reducing taxes for large corporations while cutting hospital budgets.

Experts have warned of the uneven impact this increase will have—exceeding initial projections—based on location, income, and type of housing.

Economists have expressed strong opposition to Finance Minister Jorge Quiroz's proposal to sell 1,200 state properties, arguing that it fails to address the deeper issues behind Chile's structural fiscal deficit.

A recent survey reveals that 66% of Chileans do not believe that President José Kast's proposed mega tax reform will revive the country's economy, reflecting widespread skepticism as the initiative progresses in the Senate.

In light of the unprecedented debt crisis in the United States and global restrictive monetary policies, a troubling rise in living costs disproportionately impacts the lower socioeconomic classes, suggesting it may be used as a "social stress test" to measure the resilience of vulnerable populations.

Chile's path to renewed economic growth lies not in tax cuts for corporations but in developing a robust and diverse productive strategy that addresses fundamental productive challenges faced over the years.

In a late-night session, the Finance Commission of the Chilean Chamber of Deputies approved a contentious economic-tax reform bill, which includes tax cuts and a long-term tax shield aimed at benefiting the wealthy and large corporations.