Chile’s Tax Reform: An Answer to Education Woes?
Just like the cueca (Chile’s national dance that will be on full display during Independence Day celebrations this weekend) Chilean politicians were running round in circles last week over controversial tax reform legislation to overhaul its protested education system. The bill, which will increase education-allocated government revenue by $1.23 billion, originally did not clear the Senate—where it was rejected on August 28 by a vote of 6 yeas, 19 nays and 7 abstentions. The legislation had included a welcomed increase of the top corporate tax rate to 20 percent. But it also included controversial measures, including a 2-to-5-percent tax decrease—compared to 2011—for the top income-earners in Chile as well as incentives for children in private subsidized schools.