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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

Luigi Mangione Pleads Guilty to Killing UnitedHealthcare CEO Brian Thompson

Luigi Mangione admitted Friday to fatally shooting Brian Thompson, the CEO of UnitedHealthcare, the largest health insurance group in the United States, during an appearance before a federal judge.

The case shocked the U.S. business community and dates back to December 2024, when Mangione opened fire on Thompson, 50, on a Manhattan street. Prosecutors have described the attack as being motivated by Mangione’s opposition to the U.S. health insurance system.

“On the morning of December 4, I shot Mr. Thompson in Manhattan and he died,” Mangione said as he pleaded guilty to a federal stalking charge related to his pursuit of the executive.

Mangione, 28, is scheduled to be sentenced on December 18, and prosecutors have indicated that they will seek a life sentence.

In addition to the federal charges related to stalking Thompson, Mangione also faces a murder case brought by the state of New York.

Following his guilty plea in federal court, Mangione’s defense asked a state court to dismiss the state charges, arguing that prosecuting him again for the same conduct would violate protections against double jeopardy.

“We have just filed our motion in state court to explain why the charges should be dismissed under New York’s protections against double jeopardy,” Mangione’s attorney, Karen Friedman Agnifilo, said Friday.

Both the federal and state cases could result in a life sentence. Two other federal charges that initially carried the possibility of the death penalty were dismissed by a judge earlier this year.

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International

ICE Plan to Equip Agents With Electric Shock Gloves Raises Abuse Concerns

Plans to equip U.S. immigration agents with gloves capable of delivering electric shocks are raising concerns over potential abuses by a law enforcement agency that critics accuse of using excessive force and providing inadequate training to its personnel.

The plan involves the potential purchase of electric-shock gloves for agents with U.S. Immigration and Customs Enforcement (ICE), the agency primarily responsible for carrying out President Donald Trump’s campaign to deport millions of undocumented immigrants.

Democratic Representative Maxwell Frost criticized the proposal on X, arguing that the agency has already faced accusations of excessive force during immigration enforcement operations.

“As if assaulting and shooting people in the streets wasn’t enough,” Frost wrote. He also criticized the reported $20 million potential expenditure on the devices and called for greater restrictions on ICE.

The agency has faced growing scrutiny following a series of deadly shootings during immigration enforcement operations. Among the incidents were the deaths of two U.S. citizens in Minnesota in January who were participating in protests against the agency.

Critics have focused on the tactics used by ICE agents when detaining immigrants, as well as allegations that training standards for newly recruited personnel have been lowered.

According to a procurement plan first reported by the Associated Press, the Department of Homeland Security (DHS), which oversees ICE, could spend between $10 million and $20 million on the devices.

The gloves are described by the agency as tools intended for “distraction and de-escalation,” rather than lethal weapons. The system, known as GLOVE, stands for “Generated Low-Output Voltage Emitter.”

The device is manufactured by Compliant Technologies, a Kentucky-based company that describes its products as advanced non-lethal tools designed to protect and assist law enforcement and other personnel.

The proposal comes amid an intensifying national debate over ICE’s enforcement methods and the use of force during the Trump administration’s immigration crackdown.

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International

Three U.S. Executions Set for Same Day as Trump Pushes to Expand Death Penalty

The death penalty has been abolished in 23 of the 50 U.S. states, while three others —California, Oregon and Pennsylvania— currently have moratoriums in place.

The United States is set to carry out three executions on the same day, a rare occurrence that has not happened since 2010, according to the nonprofit Death Penalty Information Center.

President Donald Trump has sought to expand the use of capital punishment for what he describes as “the most heinous crimes.” In April, the Department of Justice proposed expanding execution methods to include firing squads, lethal gas and electrocution.

Tennessee is scheduled to execute Anthony Darrell Dugard Hines, 66, on Thursday. He was sentenced to death for the 1985 murder of a woman, according to local media.

In Oklahoma, Carlos Cuesta-Rodríguez, 70, is scheduled to be executed for a 2003 murder.

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Meanwhile, Alabama plans to execute Jeremy Williams, 42, who was sentenced to death for the rape and murder of a five-year-old girl.

The United States carried out 47 executions in 2025, the highest number since 2009, when 52 executions were recorded.

Florida conducted the largest number of executions last year, with 19, followed by Alabama, South Carolina and Texas, with five each.

Of the executions carried out in 2025, 39 were conducted by lethal injection. Three were carried out by firing squad and five through nitrogen hypoxia, a method that involves forcing nitrogen gas into a face mask, depriving the prisoner of oxygen.

The United Nations has condemned nitrogen gas as a cruel and inhumane method of capital punishment.

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