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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

Pilot killed and two Pennsylvania state troopers injured in mid-air collision

A pilot was killed and two Pennsylvania state police officers were injured when a Cessna 150 airplane collided with the helicopter they were traveling in during a routine training exercise at a regional airport in the state.

Pennsylvania Governor Josh Shapiro identified the officers as Corporal Bryce Corman and Trooper Jason Mills, members of the Pennsylvania State Police aviation unit. Both are expected to recover from their injuries, according to ABC.

The county coroner’s office identified the pilot as 57-year-old Paul Sokoloski.

George Bivens, acting commissioner of the Pennsylvania State Police, said the collision occurred at around 6:50 p.m. Wednesday. The helicopter was flying several feet above a grassy area near a runway at Carlisle Regional Airport when the small plane approached from behind.

According to investigators, the Cessna suddenly veered to the right moments before the collision, striking the helicopter’s tail rotor before also hitting its main rotor.

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The airplane crashed a short distance away and broke into several pieces, while the helicopter lost its tail and other components before crashing on its side.

Police said Corporal Corman opened a window and helped Trooper Mills escape from the helicopter because they feared the aircraft could catch fire.

The Federal Aviation Administration and the National Transportation Safety Board are investigating the circumstances surrounding the crash.

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International

Argentina’s Milei Links Low Birth Rates to Abortion and Feminism

Argentine President Javier Milei on Thursday blamed feminism and the legalization of abortion for the country’s declining birth rate, arguing that the demographic trend is creating economic and pension-system challenges.

“We are paying a very high price for the madness of the green scarves,” Milei said during a speech at the Council of the Americas in Buenos Aires, referring to the symbol associated with the feminist movement and the campaign for legal abortion in Argentina.

According to Milei, Argentina is failing to reach the population growth and birth rates needed to maintain demographic replacement.

He also linked the decline in births to future challenges for the country’s pension system and workforce.

“That passion for killing children in the mother’s womb is costing us in terms of growth and pensions. It is also costing us in terms of human capital,” the president said.

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Milei has consistently opposed abortion, which has been legal in Argentina since 2020. The law was considered a major victory for the feminist movement across Latin America at the time of its approval.

In February 2024, lawmakers from Milei’s La Libertad Avanza (LLA) party introduced a bill seeking to repeal voluntary abortion legislation.

Under Argentina’s current law, abortion is legal, safe and free of charge up to the 14th week of pregnancy. After that period, it is permitted when the pregnancy poses a risk to the woman’s life or health, or when it resulted from rape.

Milei has repeatedly criticized abortion

The Argentine president has also criticized abortion and feminism in international forums. During his speech at the World Economic Forum in Davos in January 2024, he attacked the feminist movement and denounced what he described as the “bloody agenda of abortion.”

His latest comments come amid growing concerns over Argentina’s demographic outlook and the potential long-term effects of declining birth rates on economic growth, the labor force and social security.

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Virginia Police Arrest Salvadoran Man in Great Falls Woman’s Killing

Alexis Antonio Cedillos-Campos, 19, identified by federal officials as an undocumented immigrant from El Salvador, was arrested in connection with the death of Carmen Lizet Puch, 42, who was found dead Monday, the Fairfax County Police Department said.

Authorities said Cedillos-Campos and Puch were coworkers and were also involved in an “intimate relationship.”

“Our victim suffered numerous stab wounds in a truly brutal and indescribable manner,” Police Chief Kevin Davis said during a news conference Wednesday.

Investigators said surveillance video showed Cedillos-Campos at the restaurant where he and Puch worked, allegedly taking a fixed-blade knife, a pair of black latex gloves and a bottle of water before leaving.

“He left with the intent to harm and kill the victim,” Davis said.

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Cedillos-Campos was arrested Wednesday morning in Maryland and confessed to the killing, according to Davis. He is awaiting extradition to Virginia. Authorities have not said whether he has an attorney representing him.

The Department of Homeland Security said Cedillos-Campos had previously been arrested by U.S. Customs and Border Protection in 2024 after allegedly crossing the U.S.-Mexico border illegally near El Paso, Texas.

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