Chile’s Senate is currently embroiled in discussions over President José Antonio Kast’s sweeping economic reform, the Reconstruction and Economic Development (RED) bill. Approved by the lower house on May 20, 2026, the bill now faces a more arduous challenge: convincing a divided Senate.
The RED bill, encompassing about 40 different measures, seeks to double Chile’s economic growth by targeting a 4% annual GDP increase. If it sounds ambitious, that’s because it is. The plans include cutting the corporate tax rate from 27% to 23% over the next four years, a move intended to lure private investments like catnip.
Key components and the sticking points
The twist? Not everyone is on board with Kast’s master plan as is. Lawmakers across party lines have expressed concern about the bill’s fiscal repercussions, hovering over the idea like a gloomy cloud. There’s some unease about how these tax modifications will ripple through the nation’s finances.
Another notable absentee in the bill is any mention of digital assets, tokens, or cryptocurrencies, leaving crypto enthusiasts quite literally out in the digital cold. This omission does give crypto proponents pause in a world increasingly charmed by blockchain’s siren call.
