On August 12, the Deputy’s Constitution Committee began its study of a constitutional reform bill that would tax large personal fortunes in order to finance emergency basic income. 

The committee attended a presentation given by one of the authors of the bill, Deputy Karol Cariola (PC – opposition), who affirmed that the initiative could raise between 4 and 6 billion dollars. With this collection, social and economic emergency public policies could be implemented, such as emergency basic income above the poverty line, for at least 80% of the most vulnerable households, for three months, without distinguishing between formal and informal workers. 

Specifically, the initiative proposes to tax at a rate of 2.5% the gross assets of natural persons with their domicile in Chile or abroad that, as of December 31, 2019, are equivalent to a value equal to or greater than 22 million dollars. 

The committee agreed to hold four public hearing sessions with different officials and experts who will present their opinions regarding the content of the bill. The guests at the next session will be the Minister of Finance Ignacio Briones and the Minister of Justice Hernán Larraín.