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Chilean President abandons his fiscal reform and presents new proposal

Chilean President abandons his fiscal reform and presents new proposal
Photo: MSM

August 2|

Chilean President Gabriel Boric said on Tuesday that his government will not insist on a rejected tax reform bill and will promote new initiatives to raise the necessary funds to address some of its promised social proposals.

In June, the leftist ruler had said that his government would insist at the end of July in the Senate to resume the legislative processing of the tax adjustment.

Through a new Fiscal Pact, Boric said that the spending proposals involve resources for 8,000 million dollars to finance programs such as the Universal Guaranteed Pension to improve the lowest pensions, reduction of waiting lists in health, as well as greater investment in citizen security.

“This proposal considers the contribution made by growth, the reform of the state, the strengthening of tax oversight and taxes paid by the higher income sectors to be able to finance in this way the social expenses that are urgent,” he said in a televised speech.

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“We are not going to insist in the Senate with the bill that was previously rejected”, he added.

Boric did not specify deadlines for the delivery and processing of the initiatives, or how much the total collection is expected to be.

The government’s new proposal will be divided into two projects, one to improve tax compliance and the other to adjust income tax focused on those with greater resources.

“This initiative will also include tax incentives for investment, productivity and formalization, as well as benefits for the middle class and a new regime for smaller companies,” he said.

He specified that the tax incentives would be equivalent to 0.5 points of the Gross Domestic Product (GDP).

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The first project includes measures that seek to increase tax collection through legal modifications that do not imply a tax increase, which would increase tax collection by 1.5% of the GDP in net terms, according to a government minute.

Meanwhile, the second will be focused on income tax for both companies and individuals and will include incentives for investment, productivity and formalization, as well as benefits for the middle class and the new tax regime for smaller companies, which would have a fiscal cost of 0.5% of GDP.

At the investment level, tax incentives such as semi-instantaneous depreciation and a tax credit fund for investments with a multiplier effect on activity, employment and environmental sustainability are proposed.

It also commits to reduce by 30% the processing time for mining projects, according to the minutes.

Additionally, the plan includes five priority areas of productive diversification that by 2026 foresees three or four new lithium projects, two thirds of the energy matrix with renewable sources, 10-12 projects in the development of green hydrogen and an increase in the digital economy.

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The original tax reform bill was rejected in March by the deputies and the government could only insist on its passage through the Senate.

International

U.S. Proposes Higher Citizenship Fees and Limits on Immigration Fee Waivers

The U.S. Department of Homeland Security (DHS) has proposed increasing fees related to citizenship applications, while also seeking changes to programs that reduce or waive immigration-related costs for certain applicants.

The proposal would eliminate fee waivers and reduced-fee programs for immigrants whose household incomes are at or below 400% of the federal poverty level.

However, the changes would not take effect immediately. Before receiving final approval, the proposal must go through a 60-day public comment period, allowing individuals and organizations to submit feedback.

DHS justified the proposed increases by stating that the goal is to fully cover the costs associated with processing citizenship and naturalization applications.

“Although the Department of Homeland Security has historically limited form fees to promote naturalization, the agency no longer considers that these applications should have lower costs at the expense of other immigration benefits,” the department said in the proposal document.

If approved, the reform would modify the current immigration fee structure and could impact thousands of applicants who rely on financial assistance programs to complete their citizenship process.

U.S. authorities said the measure is part of a broader review of immigration service fees and the mechanisms used to fund the administration of these programs.

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Cristiano Ronaldo Makes History as First Player to Score in Six World Cups

Cristiano Ronaldo made football history on Tuesday by becoming the first player ever to score in six different editions of the FIFA World Cup.

The Portuguese forward opened the scoring in Portugal’s Group K match against Uzbekistan in Houston. Just six minutes into the game, Ronaldo found the back of the net with a right-footed strike from inside the box, sending the Portuguese fans into celebration.

The “Commander” sparked excitement throughout the stadium with his iconic celebration, as supporters joined in with his famous “Siuuu!” chant to honor another milestone in the career of one of football’s greatest stars.

At 41 years old, Ronaldo has now scored in Germany 2006, South Africa 2010, Brazil 2014, Russia 2018, Qatar 2022, and North America 2026. With his two goals in this tournament, he has surpassed Lionel Messi’s record, as the Argentine has scored in every World Cup he played except South Africa 2010.

The Portuguese captain has also reached nine World Cup goals, matching Eusébio as Portugal’s all-time top scorer in the history of the tournament.

Ronaldo’s achievement came just one day after Messi also made history by becoming the outright leading scorer in World Cup history, reaching 18 goals after scoring twice in Argentina’s 2-0 victory over Austria.

With his appearance at the 2026 World Cup, Cristiano Ronaldo has also extended another remarkable record by becoming the first player to participate in six consecutive editions of the tournament, further cementing his legacy as one of the most influential players in football history.

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Mbappé Ties Klose on All-Time World Cup Scoring List After Brace Against Iraq

Kylian Mbappé moved another step closer to World Cup history on Monday, scoring twice against Iraq to reach 16 career goals in the tournament and draw level with German legend Miroslav Klose on the all-time scoring chart.

The French forward found the net in the 14th and 54th minutes of France’s Group I clash in Philadelphia, registering his second consecutive brace of the 2026 FIFA World Cup.

Mbappé’s achievement came on the same day that Argentina captain Lionel Messi set a new all-time World Cup scoring record. The Argentine star scored twice against Austria to raise his career total to 18 goals, surpassing the previous mark of 16 held by Klose.

Klose established his record on July 8, 2014, during Germany’s historic 7-1 victory over Brazil in the World Cup semifinals in Belo Horizonte.

Before facing Iraq, Mbappé was tied with German striker Gerd Müller on 14 World Cup goals. His first goal of the match lifted him to 15, drawing level with Brazilian great Ronaldo Nazário.

The second strike moved the Real Madrid forward to 16 goals, allowing him to surpass Ronaldo, match Klose’s tally, and position himself just two goals behind Messi in the race for World Cup immortality.

The match also marked a personal milestone for Mbappé, as he made his 100th appearance for the French national team.

At 27 years old, the French superstar remains firmly in pursuit of Messi’s newly established record and continues to strengthen his legacy as one of the most prolific scorers in World Cup history.

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