Chile’s Government Scraps Plans to Raise Income Taxes on High Earners

Holger Paulmann (Temuco, 55), president of the Chilean Institute of Rational Business Administration (Icare), is convinced that Chile must “change the recipe” to get out of economic stagnation. “Chile is at a potential turning point. In the last 20 years it was thought that maybe we grew enough and that we, as a society, should give more priority to distribution,” he said in an interview with THE COUNTRY.

According to a preliminary estimate by the Finnish Taxpayers' Confederation, the change, if implemented, would reduce the taxation of wage earners earning more than approximately 100,000 euros per year by an average of 3,000 euros per year.

It was a possibility that was on the table. And for some the most likely scenario. It is that the block refusal that the opposition gave to any tax hike left without political floor to advance in the income tax project. Given this scenario is that this Monday the Minister of Finance, Mario Marcel, announced that that proposal was “postponed indefinitely”, which, in other words, there will be no project during what remains of this government.

Chile’s Government Scraps Plans to Raise Income Taxes on High Earners

Chile’s government will “indefinitely postpone” its proposed income tax reform that envisioned higher rates on top individual earners and lower corporate levies, Finance Minister Mario Marcel said on Monday.

This Monday the government, through the Minister of Finance, Mario Marcel, announced that it suspended the project “indefinitely”...