{"id":13422,"date":"2026-03-14T23:17:31","date_gmt":"2026-03-14T23:17:31","guid":{"rendered":"https:\/\/elpregonerodechile.com\/?p=13422"},"modified":"2026-03-14T23:17:31","modified_gmt":"2026-03-14T23:17:31","slug":"tax-cuts-for-big-businesses-and-cuts-to-free-higher-education-under-fire","status":"publish","type":"post","link":"https:\/\/elpregonerodechile.com\/?p=13422","title":{"rendered":"Tax Cuts for Big Businesses and Cuts to Free Higher Education Under Fire"},"content":{"rendered":"

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Original article: \u201cEn las cenizas de Penco\u201d: Cuestionan anuncios de Kast de rebaja de impuestos a grandes empresarios y recorte a la gratuidad<\/a><\/p>\n\n

Kast Unveils \u2018National Reconstruction\u2019 Plan in Penco: Tax Cuts for Big Businesses and Cuts to Free Higher Education Under Fire<\/strong><\/span><\/h2>\n

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During a symbolically charged visit to the R\u00edos de Chile sector in Penco\u2014ground zero for the wildfires that claimed 19 lives and destroyed nearly 5,000 homes in January\u2014President Jos\u00e9 Antonio Kast formally submitted the \u00abNational Reconstruction\u00bb bill. Joined by his full cabinet, including Finance Minister Jorge Quiroz and Housing Minister Iv\u00e1n Poduje, the President introduced a plan comprising over 40 measures structured around five strategic pillars that combine economic revitalization with fiscal adjustments to the higher education system.<\/p>\n

A key aspect of the proposal lies in incentives for private investment that have sparked immediate debate. The bill includes a temporary elimination of VAT on housing and a significant corporate tax reduction, lowering the rate from 27% to 23%. According to the President, this tax decrease aims to inject liquidity into the productive sector so that companies \u00abreinvest their surpluses in affected areas and accelerate the recovery of formal employment.\u00bb Additionally, the administration proposes a reintegration of the tax system and the elimination of capital gains tax.<\/p>\n

Moreover, it was announced that free university education would be limited exclusively to students under 30 and that its extension to new income brackets would be halted. The plan also contemplates changes to the charging of the State-Guaranteed Credit (CAE).<\/p>\n

These measures contrast sharply with what the then-candidate assured during his presidential campaign, where Kast repeatedly stated that he would not cut social benefits, including free higher education. Despite proposing a fiscal adjustment, he emphasized during the campaign that free education, health care, and guaranteed universal pensions would remain untouched.<\/p>\n

Deputy Emilia Schneider<\/strong> recalled this promise on her social media account: \u00abWe caught you, President @joseantoniokast. You said you would not cut free education or any other social benefit, and now you want to restrict it. Another lie, like the \u2018emergency government.\u2019 You say one thing and do another.\u00bb<\/p>\n

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Lo pillamos presidente @joseantoniokast<\/a>. Dijo que no recortar\u00eda la gratuidad ni ning\u00fan otro beneficio social, y ahora quiere restringirla. Otra mentira, como el \u201cgobierno de emergencia\u201d. Dice una cosa y hace otra. pic.twitter.com\/ly7I5QxEUl<\/a><\/p>\n

\u2014 Emilia Schneider (@emischneiderv) March 14, 2026<\/a><\/p>\n<\/blockquote>\n<\/div>\n<\/div>\n<\/figure>\n

\u201cUsing Disaster to Benefit the Wealthy<\/strong>\u201d<\/p>\n

The opposition\u2019s reactions were swift. Senator Diego Ib\u00e1\u00f1ez<\/strong> was particularly critical: \u00abKast stands among the ashes of Penco to announce a tax cut for large companies and a reduction in free education, a product of a decade of student mobilizations. This is not a national reconstruction plan; it is using disaster to benefit those who have the most while imposing costs on the poorest youth. From the Senate, we will evaluate each measure based on its real impact on people, not on its communication fanfare, especially not for a small elite.\u00bb<\/p>\n

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Kast se para en las cenizas de Penco para anunciar una rebaja de impuestos a las grandes empresas y un recorte a la gratuidad, fruto de una d\u00e9cada de movilizaciones estudiantiles. Eso no es un plan de reconstrucci\u00f3n nacional: es usar el desastre para beneficiar a los que m\u00e1s\u2026<\/p>\n

\u2014 Diego Ib\u00e1\u00f1ez (@diego_ibanezc) March 14, 2026<\/a><\/p>\n<\/blockquote>\n<\/div>\n<\/div>\n<\/figure>\n

From the ranks of the official opposition, Deputy Nelson Venegas<\/strong> also questioned the government\u2019s strategy: \u00abThe first measures of the new government are to reduce free education for university students and lower taxes for large businesses. What is President Kast trying to achieve? To set fire to the prairie for which care has been entrusted to him? Does he really not realize what will happen?\u00bb Meanwhile, historic former Socialist Senator Camilo Escalona warned about the risks of the initiative: \u00abKast has taken the wrong path; cutting free education and reducing taxes to benefit big business undermines the social peace necessary for Chile\u2019s democratic governance.\u00bb<\/p>\n

Deputy Carolina Tello stated emphatically on her official account:<\/strong> \u00abFamilies who lost their homes need reconstruction. Not tax cuts. No more debt for education. Not an economic package disguised as an emergency. During the campaign, Kast promised that there would be no cuts to social benefits. Today we see the opposite.\u00bb<\/p>\n

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Las familias que perdieron sus casas necesitan reconstrucci\u00f3n.<\/p>\n

No rebajas tributarias.
No m\u00e1s deuda para estudiar.
No un paquete econ\u00f3mico disfrazado de emergencia.<\/p>\n

En campa\u00f1a, Kast prometi\u00f3 que no habr\u00eda recortes a los beneficios sociales. Hoy vemos lo contrario.<\/p>\n

Una\u2026<\/p>\n

\u2014 Carolina Tello Diputada D5 (@AbogadaTello) March 14, 2026<\/a><\/p>\n<\/blockquote>\n<\/div>\n<\/div>\n<\/figure>\n

Deputy Daniel Manouchehri pointed to the political cost of the measure: \u00abPresident Kast promised not to touch social rights. But his first agenda reduces free education and targets CAE debtors. This is a backward social agenda.\u00bb<\/p>\n

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El Presidente Kast prometi\u00f3 no tocar los derechos sociales. Pero su primera agenda reduce la gratuidad y persigue a los deudores del CAE. Est\u00e1 es la agenda del retroceso social: un portazo a la movilidad social y una cuenta que termina pagando la clase media. pic.twitter.com\/6oKajXJzTj<\/a><\/p>\n

\u2014 Daniel Manouchehri (@danimanouchehri) March 14, 2026<\/a><\/p>\n<\/blockquote>\n<\/div>\n<\/div>\n<\/figure>\n<\/div>\n