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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

Three Die During World Cup Celebrations in Mexico City After Mexico’s Victory

Three people died in Mexico City while celebrating Mexico’s 2-0 victory over Ecuador at the 2026 FIFA World Cup, local authorities confirmed on Wednesday.

According to the city’s Health Secretariat, the victims—a 44-year-old man, a 48-year-old woman, and a 19-year-old woman—died from asphyxiation following the post-match celebrations.

Emergency services were dispatched to the Juárez district after reports that three people had lost consciousness shortly after Tuesday night’s match.

Paramedics, firefighters, and police officers responded to the scene, where the victims received first aid and cardiopulmonary resuscitation (CPR) before being transported to a hospital for specialized medical care. Despite the efforts of medical personnel, all three were later pronounced dead.

“We are in contact with their families to provide all the support they need,” Mexico City Mayor Clara Brugada Molinasaid in a statement posted on social media.

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“With my hand on my heart, I extend my deepest condolences to their loved ones. We once again call on everyone to celebrate with responsibility, care, and empathy,” she added.

Mexico’s victory over Ecuador sparked massive celebrations at the Estadio Azteca and across the capital. Goals from Raúl Jiménez and Julián Quiñones secured the hosts’ place in the Round of 16, where they are set to face either England or the Democratic Republic of the Congo, who meet on Wednesday in Atlanta.

Should Mexico advance to the quarterfinals, the team would face either Brazil, coached by Carlo Ancelotti, or Norway.

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International

Families Sue Nicolás Maduro in U.S. Over Alleged Extrajudicial Killings

The families of five young Venezuelan men have filed a 44-page civil lawsuit in a U.S. federal court, accusing former Venezuelan President Nicolás Maduro of ordering extrajudicial executions carried out by the country’s former Special Action Forces (FAES) between 2017 and 2020.

The lawsuit, filed Tuesday in the U.S. District Court for the Eastern District of New York in Brooklyn, alleges that the victims were among thousands of people killed under Maduro’s administration by security units, including the FAES, which were dissolved in 2021 following widespread allegations of human rights abuses, including criticism from the United Nations.

Maduro is currently being held in a New York detention facility awaiting trial on U.S. drug trafficking charges after he was removed from power during a U.S. military operation in Venezuela in January.

The complaint argues that the killings followed a well-documented pattern of extrajudicial executions allegedly carried out during Maduro’s presidency, which lasted from 2013 to 2026. Throughout his time in office, Maduro faced repeated accusations from international organizations of using state repression to maintain power.

According to the lawsuit, FAES officers arrived at the victims’ neighborhoods before dawn, dressed entirely in black and wearing face coverings. The agents allegedly separated the men from their families before fatally shooting them.

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The complaint further alleges that authorities later fabricated official reports claiming the victims had “resisted arrest” in an effort to justify the killings.

“Maduro used the FAES as a political instrument and a mechanism of social control to violently suppress dissent, terrorize low-income communities, and eliminate political opposition,” the lawsuit states.

It also describes the FAES as being “widely regarded as a death squad or extermination group.”

The plaintiffs argue that Venezuela’s judicial system has failed to provide accountability for the killings, preventing the victims’ families from obtaining justice.

For security reasons, the identities of the families remain confidential. They are seeking financial compensation from Maduro under the U.S. Torture Victim Protection Act.

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According to The New York Times, Maduro is expected to argue that he is entitled to head-of-state immunity in the civil proceedings.

In the separate criminal case pending against him in the United States, in which he is charged alongside his wife, Cilia Flores, Maduro has described himself as a “prisoner of war.”

He has pleaded not guilty to multiple charges, including conspiracy to import cocaine into the United States and weapons-related offenses.

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International

Salvadoran National Arrested in New Jersey with Over 70 Machine Gun Conversion Devices

The U.S. Department of Justice announced the arrest of 21-year-old Salvadoran national Erick Márquez Cruz after authorities allegedly discovered more than 70 machine gun conversion devices and other firearm-related components during a search of his residence in North Bergen, New Jersey.

According to the Justice Department, law enforcement officers executed a search warrant on June 25 at Cruz’s home, where they recovered a 3D printer that was allegedly being used to manufacture firearm components. Investigators also seized 17 3D-printed firearm frames, magazines, and more than 70 machine gun conversion devices (MCDs).

Federal authorities explained that the conversion devices, which are classified as machine guns under U.S. law, are designed to convert semiautomatic firearms into fully automatic weapons capable of firing multiple rounds with a single pull of the trigger.

Cruz has been charged with unlawful possession of a machine gun. If convicted, he faces a maximum sentence of 10 years in federal prison and a fine of up to $250,000, or twice the gross financial gain resulting from the offense, whichever is greater.

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