International

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

Winter Storm Fern Leaves 30 Dead and Over One Million Without Power Across the U.S.

The massive winter storm Fern, bringing polar temperatures, battered large portions of the United States for a third consecutive day on Monday, leaving at least 30 people dead, more than one million households without electricity, and thousands of flights grounded.

In the Great Lakes region, residents awoke to extreme cold, with temperatures dropping below -20°C. Forecasts indicate that conditions are expected to worsen in the coming days as an Arctic air mass moves south, particularly across the northern Great Plains and other central regions, where wind chills could plunge to -45°C, temperatures capable of causing frostbite within minutes.

Across the country, heavy snowfall exceeding 30 centimeters in roughly 20 states triggered widespread power outages. According to PowerOutage.com, nearly 800,000 customers remained without electricity on Monday morning, most of them in the southern United States.

In Tennessee, where ice brought down power lines, approximately 250,000 customers were still without power. Outages also affected more than 150,000 customers in Mississippi and over 100,000 in Louisiana, as utility crews struggled to restore service amid dangerous conditions.

International

Spain approves plan to regularize up to 500,000 migrants in Historic Shift

In November 2024, Spanish Prime Minister Pedro Sánchez announced a reform of the country’s immigration regulations aimed at regularizing 300,000 migrants per year over a three-year period, in an effort to counter population aging in a country where births have fallen by 25.6% since 2014, according to official data.

Going against the trend in much of Europe, Spain’s left-wing government has now approved an exceptional migrant regularization plan that could benefit up to 500,000 people, most of them from Latin America.

The measure will allow the regularization of around “half a million people” who have been living in Spain for at least five months, arrived before December 31, 2025, and have no criminal record, Migration Minister Elma Saiz explained on public television.

The plan, approved on Tuesday by the Council of Ministers, establishes that applications will be processed between April and June 30, enabling beneficiaries to work in any sector and anywhere in the country, Saiz said.

“Today is a historic day for our country. We are strengthening a migration model based on human rights, integration, and one that is compatible with economic growth and social cohesion,” the minister later stated at a press conference.

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The socialist government of Pedro Sánchez stands out within the European Union for its migration policy, contrasting with the tightening of immigration measures across much of the bloc amid pressure from far-right movements.

Central America

Honduras swears in conservative president Asfura after disputed election

Conservative politician Nasry Asfura assumed the presidency of Honduras on Tuesday with an agenda closely aligned with the United States, a shift that could strain the country’s relationship with China as he seeks to confront the economic and security challenges facing the poorest and most violent nation in Central America.

Asfura’s rise to power, backed by U.S. President Donald Trump, marks the end of four years of left-wing rule and secures Trump another regional ally amid the advance of conservative governments in Chile, Bolivia, Peru, and Argentina.

The 67-year-old former mayor and construction businessman was sworn in during an austere ceremony at the National Congress, following a tightly contested election marred by opposition allegations of fraud and Trump’s threat to cut U.S. aid if his preferred candidate did not prevail.

Grateful for Washington’s support, Asfura—who is of Palestinian descent—traveled to the United States to meet with Secretary of State Marco Rubio, before visiting Israeli Prime Minister Benjamin Netanyahu.

“We need to strengthen relations with our most important trading partner,” Asfura said after being declared the winner of the November 30 election by a narrow margin, following a tense vote count that lasted just over three weeks.