Chilean Tax Reform Shifts Toward Income Redistribution
Chilean Tax Reform Shifts Toward Income Redistribution
By Marianela Jarroud
SANTIAGO, Apr 24 2014 (IPS) - Chilean President Michelle Bachelet’s proposed tax reform is seen as the cornerstone of her ambitious social programme and a sign of a new shift in fiscal policy towards redistribution of income.
But it has critics on the right, who say it goes too far, and on the left, who say it leaves legal loopholes and regressive taxes intact.
The bill, expected to pass easily through Congress, where the governing centre-left coalition has a majority, would boost tax revenue by 8.2 billion dollars a year.
The new revenue will go towards financing an overhaul of the education system, to guarantee universal tuition-free public education at all levels, improvements to healthcare and other social coverage, and paying off the deficit inherited from the previous administration.
More:
http://www.ipsnews.net/2014/04/chilean-tax-reform-shifts-toward-income-redistribution/
