Chile: The corporate tax cut and the unfinished social debt

The tax reform bill promoted by the government of José Antonio Kast to cut the corporate tax on large companies from 27% to 23% deepens the underfunding of the public services at the core of the Chilean model.

Reducing revenue from the profits of large corporations will limit the state's capacity to improve the solidarity pensions and to finance regional hospitals.

While fiscal revenue from copper prices is running a surplus, cutting taxes on private corporations restricts the resources needed to settle the historical debts in public health and pensions.

Sources: Dirección de Presupuestos de Chile (DIPRES) (https://www.dipres.gob.cl) | Fundación Sol (https://www.fundacionsol.cl)