Government confirmed that it will appeal to the Constitutional Court if indication of tax on “super-rich” is approved in the Senate

The Government of Chile confirmed that it will appeal to the Constitutional Court (TC) if the Universal Guaranteed Pension project manages to be approved in the Senate with the indication of financing based on a tax on the “super-rich”.  Measure that was included by the opposition and that has not liked in the ruling party.
It should be noted that the measure that was promoted by the Executive aims to ensure that all people over 65 years of age are guaranteed a pension above the poverty line, regardless of the amount of contribution in the individual capitalization account. thus managing to secure an amount of $ 185 thousand pesos.
After the approval of the indication that seeks a wealth tax on large fortunes and on the eve of their arrival in the Senate, the Minister of Finance, Rodrigo Cerda, anticipated that they will go to the Constitutional Court.
“If this continues its course, it forces us to go to the TC just for the sake of taking care of the institutionality. We have talked all week with different actors so that this can move forward and we will continue to do so,” he said. In addition, Minister Cerda called for the generation of agreements between the various sectors.
“What we need is political readiness to be able to reach agreements and that is what we need in the Senate,” he added.
On the other hand, the minister of the Segpres, Juan José Ossa, joined the criticism for the “unconstitutionality” of the indication and called on the future government of President-elect Gabriel Boric, to change its approach according to the project.
“The way in which the current opposition presented an indication that is unconstitutional and they know it is unconstitutional, will weigh on them for the next four years when they are in government,” he said.
To finance the fiscal expenditure required by the project, it was proposed that a percentage would be paid through the Financial Program that is contemplated in the 2022 Budget Law. Another would come from the Pension Reserve Fund and the remainder with tax exemptions. This last point was declared as “insufficient” by the center-left and the left, alluding to the fact that a permanent income is required, such as the tax on the “super-rich”.
The bill is expected to be voted on Tuesday by the Senate, where the expectation remains about its final result and the collateral effects it produces.

Original source in Spanish