Providencia Mayor Evelyn Matthei criticized the economic and reconstruction reform proposal led by José Antonio Kast's faction this Tuesday. Speaking on radio Pauta, the former presidential candidate questioned the effectiveness of the employment incentive measures contained within the project.
Matthei argued that the initiative is ineffective at generating jobs. “It is extremely expensive and is going to achieve absolutely nothing in terms of employment (…) it is totally useless,” she stated, according to latercera.com.
The Chile Vamos politician focused her attacks on the elimination of the Sence tax incentive. According to her calculations, this measure would represent a fiscal impact of US$1.4 billion per year without providing real benefits for employment rates. “That proposal (…) costs US$1.4 billion a year—it's brutal. With that, you could almost lower the tax rate by three points,” Matthei maintained. The former mayoral candidate was blunt: “That proposal is extremely, incredibly bad. I would vote against it regardless.”
Tension within the coalition
The former mayor's criticisms target not only the technical content of the reform but have also sparked political friction. According to reports from La Tercera, her remarks have caused unease within both the Republican Party and the UDI. Senator Sergio Gahona warned that such language does not help the coalition's internal climate: "We are at a crucial moment in the reform debate, and these kinds of labels do not help the atmosphere within the coalition."
Criticism of property taxes and the Municipal Common Fund
Another point of contention was the proposal to eliminate property taxes on primary residences for those over 65. Matthei described this measure as an “absolute contradiction” within the current economic context.
The former Labor Minister warned that reducing the local property tax burden would directly impact municipal coffers. She questioned the viability of the proposed compensation mechanisms for local administrations.
“Don't let them tell you they are going to pay it back, because they won't,” the official warned, noting that the reduction would impact resources from the Municipal Common Fund.
Regarding the country's overall situation, the mayor rejected more extreme views suggesting a terminal crisis. “Chile has problems (…) but to say that the country is destroyed—no. We cannot compare ourselves to the 70s or 80s,” she declared.
Matthei also urged a moderation of the political debate's tone to avoid national paralysis. “When everything is extremized, when everything is polarized, the country does not move forward,” she concluded.
However, the mayor showed partial support for reducing the first-category tax from 27% to 23%. As she explained, this reduction is an objective her sector has been pushing for previously.
