translated from Spanish: Tax reform: opposition in check still fails to unique attitude towards the Government’s new proposal

In a virtual check was the opposition after receiving the Government’s proposal in the Committee on Finance of the House of representatives with its new proposal for tax reform. The vote on the idea of legislating in the specialized instance will be Wednesday in Valparaiso, but everything indicates that tomorrow Tuesday should get white smoke in Congress when meet the heads of the former new majority and the broad front bench.
In public, the opposition points out that offered by the Government is still quite “insufficient”. but the Minister of Hacienda Felipe Larraín bet to get the necessary support to overcome the first legislative fence. “I never lose confidence,” he said. After the meeting of the Finance Committee, of the former new majority and the broad front party representatives gathered at the headquarters of the Congress, but the only DC send his advisors.
All a signal, considering the doubts of opposition to pass by the attitude of the Phalanx. In the center-left bloc is given for granted that tent of the red arrow would have not withstood the pressure and end up giving their votes to the idea of legislating. In fact, from early hour of Monday circulates the version that the helmsman of the Phalanx, Fuad Chahin, contacted their counterparts in the former new majority to notify them the decision to DC.
In finance, the opposition has majority of 7 votes to six, and two of them are Christian Democratic: Pablo Lorenzini and José Miguel Ortiz, who have in their hands the key to tip the balance in favour of the Executive. But the latter opted to keep the suspense. “I am part of a political conglomerate. “I have not taken yet a decision because I am convinced that they have to bring other things (…) I expected more”, said this afternoon.
However, the bet on the opposition is to get, beyond what happens in the Committee on finance, a commitment to the DC so not submit their votes for the reintegration of tax systems, as the Government’s proposal puts it.
Reactions after the meeting which lasted about two hours, Ministers and parliamentarians of the ruling party expressed its satisfaction with the proposal of the Executive, and assured feel hopeful that the project be voted favorably in the Finance Committee next Wednesday.
“Was clearly a figure of compensation exceeding $ 400 million, is more than compensates for what had been raised initially by the opposition, which is based on the order of $ 300 million.” A clear and forceful response is given”, said the Secretary general of the Presidency, Gonzalo Blümel.
“Actually, a set of benefits for the small and medium enterprise of Chile, who are asking to legislate this project, and that benefits are incorporated to 900 thousand companies, and in that there is a consensus in advance,” he added.
On the other hand, the Deputy Alejandro Santana (RN) considered that with this proposal the regions have been “absolutely represented”. He also emphasized that this initiative will bring greater benefits to older adults with regards to the reduction of contributions, and to the strengthening of the service of internal taxes (SII).
“I believe that parliamentarians to outright will not vote because refuse everything, there are members that they may be thinking and can make the criticism as Pepe Auth, which is insufficient, but I have the impression that also are in the mood to advance “, and want us to keep those who want to contribute”, commented.
In addition, parliamentarian of the UDI, Patricio Melero, assessed the “approach” between Government and opposition. “Some may initially feel disappointed, others were more consistent, and we believe that it has been made an effort to gigantic compensate and do it in a very smart way, because it does not involve or increase taxes or any of the materials that they could worry. I think that on Wednesday we will have a positive result, a relative majority will allow that we can get to what matters, which is the discussion in particular”.
“I am confident that begins to understand the deeper meaning of this tax modernization, which is boosting growth, progress, favouring small and medium-scale industry, and also incorporate those who were absent, and we feel like sector very proud of that politician. “Older adults than in a figure close to 100 k, will see reduced their contributions of real estate, along with the impetus that is given also to the regions”, said.
Other members of the ruling which was shown as he was meeting, Guillermo Ramirez (UDI), who he described as “incomprehensible” the hypothetical scenario that joined the opposition to vote against. In addition, he considered that this new tax system is more “progressive” than the current one and that foster economic recovery.
“There is no substantive criticisms that warrant to reject the idea of legislating. When I heard the criticism that some of them did, were details, I imagined a fire that passes you a part through badly parked to a fire truck, would be absurd. You have to look important thing, the general picture, the center of what we are talking, and not sit simply in details that can finally be corrected during the processing of the project”.
The doubts of the opposition but in the street were not very satisfied with the proposal of the Executive, in fact, Deputy Daniel Nuñez (PC), it was considered that this is ‘insufficient’ and that it does not meet the expectations. He also argues that this reform reversed the advances of the year 2014 which allowed funding in education free.
In the same vein, Manuel Monsalve (PS) said that “what today we think of is not on that level of seriousness and magnitude and size of compensation. “First because a simple revision, the Commission itself, without resorting to technicians in the field, can look clearly are not $471 million”.
“We repeat in the Finance Committee, it is a gift to the sectors of low income and high income offset with sectors of middle-class tax increase, and that is the core of our difference with the project, and why we have insisted that you to get to a” sane, the Government must show serious compensation mechanisms of which the State loses integration product”, he said.

Original source in Spanish