Chile Drops Corporate Tax Rewrite in Favor of Taxing the Rich (1)

The Chilean government reached agreement with opposition lawmakers to raise taxes on the country’s richest individuals and companies in a bid to help quell widespread unrest that has rocked the country.

The deal marks a change of direction for President Sebastian Pinera who had promised to reduce the tax burden on business owners to encourage investment as part of an overhaul of the country’s corporate tax system. But weeks of protests over rising living costs and social inequality have forced the administration to raise taxes to fund welfare spending.

“This agreement gives a signal of unity to the ...