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Original article: “Es un manotazo a las familias trabajadoras”: Crecen las críticas a plan de Kast por beneficiar a súper ricos y ministros con conflicto de intereses

Kast’s Mega Tax Proposal Labeled «Regressive», Exclusively Benefiting Large Corporations and the Wealthiest 1%

On April 16, 2026, President José Antonio Kast unveiled his ambitious economic and tax project, sparking a wave of criticism from various political and academic circles. According to Prensa El Siglo (April 17, 2026), there were multiple critical viewpoints suggesting that the government aims to favor large companies and the wealthiest 1% of the population, while negatively impacting the financial well-being of the middle and lower-income sectors.

Economist Andrés Solimano, also quoted by the same outlet, stated, «The package announced by President Kast is socially regressive. In reality, it leads to increased incomes for the wealthy and higher prices and living costs for middle and lower-income groups.»

Projected Fiscal Loss of $2.7 Billion and Investment Doubts: «It’s a Return to Reagan’s Policies»

A central aspect of the proposal is the reduction of the corporate tax rate from 27% to 23%, a measure critics argue will severely diminish state revenues. Senator Daniel Núñez, in comments to ElSiglo.cl, asserted, «In practice, this corporate tax cut, referred to as the reintegration of the tax system, will result in a fiscal revenue loss of $2.7 billion.» He made a stark comparison: «While those affected by price hikes are told there is no money, this proposal suggests there is money available to cut taxes for the wealthiest in Chile.»

Furthermore, economist Andrés Solimano challenged the conceptual foundation of the initiative: «The tax cut is a gamble on a potentially unrealistic boom in private investment given the current national and international economic context. […] In reality, this is a revival of Ronald Reagan’s policies from the 1980s, which did not lead to significant investment in the United States.»

Conflict of Interest: Interior Minister Admits Personal Gain While Lawmaker Denounces «Unjust Privileges»

A particularly sensitive issue emerged following a public acknowledgment by Interior Minister Claudio Alvarado, who admitted to benefiting from the property tax exemption included in the bill. Deputy Luis Cuello, during the presentation of the mega project, told Prensa El Siglo: «It is unacceptable that the first beneficiary of the reconstruction bill is Minister of the Interior, Claudio Alvarado, who admitted on television that he will not pay property taxes due to this law for one of his houses. This confirms a conflict of interest regarding this bill, which involves state ministers.»

Cuello went on to highlight the impact on municipalities: «People will suffer because of these privileges and unjust benefits for a few state ministers.» He emphasized that what Kast has announced «is a real blow to working families. […] Families who work hard to make ends meet will receive fewer municipal services; public schools and hospitals will have fewer resources, all while the gas price increase continues to drive inflation and living costs up.»

CUT Calls Out Government on Minimum Wage: «We Do Not Share the Vision of Curbing the Adjustment»

Alongside the tax debate, the Chilean Unitarians Central of Workers (CUT) intensified its pressure on the Executive due to diminishing purchasing power. According to a press release from CUT Chile  on April 13, 2026, following a meeting with members of the Labor commissions, CUT president José Manuel Díaz stated: «We do not share the government’s vision, specifically the Ministry of Labor’s, when they express concern for employment and growth at the expense of restraining the minimum wage. Our concern is with workers and their incomes and the loss of purchasing power that affects the entire salary chain today.»

Díaz added, «Negotiating and adjusting the minimum wage is an opportunity for the government to help citizens regain the purchasing power that has been reduced by rising gas prices.» Deputy Luis Cuello echoed this sentiment, warning: «Today, families are being punished by rising fuel prices, and simultaneously, there is an attempt to limit the minimum wage adjustment solely to the CPI. This effectively means a reduction in real wages.»

Surge in UF Over $40,000: Eight Out of Ten Chileans to Adjust Budgets and 58% Expect Impact on Food

The decline in purchasing power is exacerbated by the increase in the Unidad de Fomento (UF). According to a study by consulting firm Kantar Chile, reported by Radio Cooperativa  on April 13, 2026 titled «Eight in Ten Chileans Must Adjust Budgets Due to UF Exceeding $40,000», 80% of Chileans anticipate a direct impact on their finances. Kantar Chile’s CCO, Carolina Livacic, explained: «We are observing a forced adjustment in household economies.»

The report details that 58% of respondents expect food costs to be affected, 49% anticipate impacts on healthcare and transportation, 47% on credit or mortgage payments, and 42% on rental costs. Livacic concluded: «The rise of the UF acts as a silent yet persistent adjustment on family budgets. Not only do major financial commitments increase, but everyday life also becomes more expensive. When households begin to cut back, even on food, education, or health, it signals clear economic pressure.»

Senator Beatriz Sánchez Estimates Revenue Loss of $4 Billion, Describing the Plan as “Absolutely Ideological”

Criticism also arose from the Senate with concrete figures. Senator Beatriz Sánchez, in statements to Radio Universidad de Chile captured by Prensa El Siglo, asserted: «There was a quick calculation made last night regarding the reduction of corporate tax from 27% to 23%, and it would amount to approximately $4 billion less in revenue if pursued in that direction.» Sánchez emphasized the importance of fiscal revenue: «When a state collects more, it can do more—build more hospitals, employ more specialists, construct more roads, and bridges.» She characterized the package as «a set of absolutely ideological measures that diverge from what Chile has historically pursued.» Meanwhile, the General Secretary of the Socialist Party, Arturo Barrios, remarked that Kast has opted to «govern for the wealthiest 1% in this country, leaving 99% of Chileans unprotected and in despair.»

Lack of Dialogue and No Measures to Contain Price Increases: Kast’s Address “Fell Short”

Senator Daniel Núñez encapsulated the opposition’s discontent by evaluating President Kast’s first national address. According to Prensa El Siglo, Núñez stated: «President José Antonio Kast’s speech in the national address was disappointing because it reflected, first of all, the lack of dialogue he has had with the opposition […] and secondly, what concerns me most is that there are no measures to curb the increases affecting people today.» He added that announcements such as a significant minimum wage increase or direct food subsidies were expected, «very positive measures that did not materialize.» «I believe this speech, this first national address by President José Antonio Kast, fell short based on the needs of the people, who are currently suffering from price increases and are hit hard in their pocketbooks,» the senator concluded.

Meanwhile, the CUT emphasizes the urgency for the Ministry of Labor to finalize the meeting to negotiate the minimum wage adjustment, which, by law, should be enacted by May 1, 2026.

La entrada Criticism Mounts Against Kast’s Mega Tax Plan for Favoring the Wealthy and Ministers with Conflicts of Interest se publicó primero en El Ciudadano.