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In the midst of the discussion for the second withdrawal of 10% of the AFPs, and with the Government project on its way to the Chamber of Deputies, the Minister of Finance, Ignacio Briones, insisted on the payment of taxes included in the Executive’s project, ensuring that “we all have to contribute a little.
The head of the fiscal wallet closed the door to a possible indication to collect taxes on retirement only to high incomes and defended this morning in front of the press that, with respect to making adjustments to the tax table, “the project is not modifying nothing. If we start to change the rules we have, we talk about other things. “
“I am not going to tire of giving the same example, which is that 8 out of 10 Chileans do not pay income taxes,” said the minister, insisting that the payment of taxes only applies to those who earn more than $ 700,000.
Briones explained in passing that if “someone who earns $ 1,000,000 a month and withdraws $ 1,000,000, is going to pay $ 3,000 more a month.” “What we know about the retirement, moreover, is that two out of every three pesos withdrawn are from people who have not lost their jobs,” added the head of the Treasury who, later, consulted directly for a possible indication to modify the payment of taxes From the two million pesos -initiative that must be presented by the same Government-, the head of Teatinos 120 showed his refusal and commented that it is always good “to keep the general rules.” In his opinion, “there is no reason to innovate in that”.
“Today we have an exceptional retirement in which I want to insist that our concern is that this be done through the institutional channel and we banish this practice of legislating through transitory constitutional reforms that do not talk to the permanent body of our Constitution and that go flooding the exclusive powers of the President of the Republic in a presidential regime “, sentenced Briones, arguing that” we are not creating a tax. None. We are simply applying what exists to those people who have to pay something for a tax that in the past did not pay tribute. “
From Chile Vamos, it has already been proposed that the Government should at least open itself to the possibility of presenting an indication since it is the only way to generate changes, since the power to present indications is exclusive to the Executive. Faced with this, Briones reiterated that “the vast majority of those who decide to make a withdrawal will not pay taxes because that is the reality in our country of those who pay taxes.”
“In April 2021 they will pay the year 2020. That is, if that person received part of their funds, they will have to pay in April. And if they withdraw in April 2021 (there are 365 days to make the request) will pay the tax in 2022. That’s how taxes work in Chile, “he said.
Briones hopes that the discussion in the Chamber of Deputies will be as it was in the Senate and once again insisted that the underlying issue for La Moneda “is that things be done through institutional channels and respecting the exclusive prerogatives of the President “.
Proposals such as that of modifying the tax part could be the subject of discussion in the Chamber of Deputies, up to where the Government’s initiative was dispatched yesterday for its second process.
Ossandón’s proposal
The National Renovation senator, despite the fact that he supported the Government’s project for a 10% withdrawal in the Upper House, advocated so that, in the remainder of its processing, modifications can be made on the taxes to be charged to those who take out a slice of your savings.
“I think that it is not settled, but clearly we must ask all parliamentarians that we have common sense and prudence to look for rules that are applicable,” said the official parliamentarian in conversation with Cooperativa, where he also announced that he has the impression, without concrete data , “that with an effort this could be done.”
Yes, Manuel Jose Ossandón He estimates that in order to come to fruition “there must be a conversation with the advisers of the parliamentarians and the advisers of the Ministry (of Finance) to demonstrate whether it really can or cannot be done.”
It is worth mentioning that the Government project does not exempt anyone from those who must pay taxes according to their income level, which currently includes those with income from approximately 700 thousand pesos. On this, Ossandón’s personal opinion is that “we should segment that.” And the reasons given by the former mayor of Puente Alto is that low incomes are going to pay “re few taxes”, but when one has very little, he explains, and is going to his pension savings, “I think that the tax in that segment does not corresponds “.
For this reason, Ossandón also asked to find a figure to segment the eventual beneficiaries: for example, “from 3 million downwards it is not paid, and upwards, it goes to the Global Complementary (Tax). So clear.”
“What we want is for the withdrawal of 10% to exist and for it to be to help people who are in trouble, because it is assumed that they are withdrawing it because they need it,” the parliamentarian closed, criticizing that the project is in line with ” also hit them with the machete of taxes. “
The opposition offensive
Meanwhile, the opposition is already beginning to think of a strategy to change La Moneda’s hitherto immovable position. The deputy of the Socialist Party and member of the Labor Commission, Gastón Saavedra, announced indications to eliminate the lowest tranche of the payment of taxes and, in addition, reduce deadlines in the delivery of funds. The Socialist parliamentarian pointed out that the idea is that “the same terms of the first withdrawal exist, so that Chileans can have these monies before Christmas.”
“As the deadlines are now, it is very difficult for this money to reach the people in December and we want to make sure that they do not keep waiting any longer,” deputy Saavedra lashed out.
“Most Chileans know that 700 thousand pesos are barely enough to support a family of 4 people. If we apply a new tax to this segment we are only taking away the possibility of paying a basic services bill or subtracting money for locomotion We cannot forget that Chileans already pay an important tax that is VAT, “added the parliamentarian.
In the same tone, but more optimistic, the Deputy DC Matías Walker said to T13 that “an agreement can be reached in the second process with the Government that the tax is not applied from the 700 thousand pesos of income.” According to Walker, in this section we speak of sectors of the lower middle class that “obviously have been waiting for this withdrawal for a long time and had not contemplated the possibility of paying a tax.”
“I hope that a formula like the one we had approved in the Constitution committee will be reached, that is, that only those who have income over 30 million pesos a year pay taxes,” said the Falangist parliamentarian.
Who also bowed to the criticism was the PPD Senator Guido Girardi, who pointed out that in the ruling party “now they are the champions of taxes.” In an emergency, catastrophic situation, he said, “to argue about taxes is not appropriate.” “Many people who maintained their resources must support family or friends who are having a hard time. 80% of the population has seen their income decrease and millions have lost their jobs,” he added.
Girardi raised the tone and questioned that “with what morality this sector (the ruling party), which has never wanted to increase taxes, which does not want to tax wealth and profits, now demand that the people who will withdraw due to the emergency pay taxes” .
The senator warned that “we can reappear and social conditions continue to be very fragile. There must be help from the State and the necessary sanitary measures must be taken to mitigate the second wave. But half of the corresponding traceability is being done and not all those infected and their contacts are being isolated “.
And he affirmed that resorting to 10% “is not a public policy, it is an emergency solution (…) there is a lack of a serious government with sensitivity that understands the deficiency that Chileans are suffering and with fiscal resources generates real public policies, which long it will be much cheaper and without people having to make use of their retirement ”.
Guido Girardi firmly concluded that the country should borrow “everything necessary” and “they do not want to do so for ideological reasons.”
“This is not over. The middle class has become impoverished, it is out of all programs and is having a terrible time. If things are not done well we will have a strong reappearance and without real social aid public policies, we will have to discuss a third withdrawal of the AFPs, “he concluded.
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