translated from Spanish: Eyzaguirre critical benefits of super rich: tax reform of Piñera “is a direct injection that most have”

days complicated for the Government they do not live on tax reform. Then that parliamentarians angry yesterday because the Finance Minister, Felipe Larraín, and his pair of Segpres, Gonzalo Blümel, arrived three hours late to enter the draft, the Executive now facing criticism from the opposition, specifically of who led the public finances during the Government of Ricardo Lagos and Michelle Bachelet.
291 pages contains the project presented nationally by the own Sebastián Piñera, as well as the financial report which is square lower revenues generated by, mainly, the integration of the tax system, which is compounded by the reduction of VAT to dwellings. This part of the proposal of the Government is seen as a benefit to the super rich.
And who was hard and critical of the so-called “tax modernization” was the former Minister of finance, Nicolás Eyzaguirre, who assured that the reintegration of the system will for the benefit of big business.
In an interview with Radio Cooperativa, the former holder of the portfolio said that “doing addition and subtraction, 90% of the decrease of the revenue produced by the reintegration will big business, is a direct injection that most have”. “If you what you want is to produce more investment incentives, what you do is lower taxes to businesses, and this tax reform low taxes employers, this is a subsidy to the consumption of entrepreneurs”, said Eyzaguirre.
The ex-Hacienda of previous Governments were asked “in what will help investment give a subsidy for consumption to the richest and remove income to the poor. I guess that they believe that those who have most invest, and ultimately get a better return in terms of money for the Pocket when out profits, because we are not talking about a rebate to the withdrawal of utilities and not utilities taxes reinvertidas. That want to explain me, why that’s going to encourage investment”.
In addition, explained that the legal initiative “to reinstate the semiintegrado system which makes is that a businessman who has utilities for 100 pay 27 taxes, but only accredits more than 17 when you have to pay taxes as a person.” “This project is going to deduct the taxes that will pay as a person, all of the 27 have already been paid”.
Eyzaguirre also put focus on differentiation which is made around small and medium-sized enterprises. “It is true that there are many SMEs that were in this system, but it is only 10% of the total number of them that are in this system. The others are in an integrated system where discounted everything what you have paid as a company,”he said.
With respect to the reduction of VAT to the dwellings, the former Secretary of State said that “up the VAT’s construction discount houses of construction cost between 2,000 UF and UF 4,000. Those costs of construction of 2,000 UF UF 4,000, are apartments or houses that are sold in the market between UF and UF 4,500 7,000 ‘. “Who have houses between UF 4.500 and 7.000 UF? It’s very simple because more or less, that represents a quarter of revenue, i.e. the tenth decile and hopefully the ninth decile”, he explained.
Who was at the helm of Teatinos 120 Finally topped and concluded by asking ‘who pay for this? On the issue of taxes on electronic things consumers, who are all poor, middle-income and wealthy. Then is the electronic ballot, which is basically a decrease of VAT evasion, who pay VAT? “Everyone, from the first to the tenth decile, in proportion more poorer”.

Original source in Spanish