Chile's Chamber of Deputies Passes Base Text of Kast's Mega Economic Bill 90-59-1 — Advances to Senate

On May 20, 2026, Chile's Chamber of Deputies approved the general base text of President José Antonio Kast's flagship National Reconstruction and Economic and Social Development bill by a vote of 90 in favor, 59 against, and 1 abstention — clearing a critical parliamentary milestone for the centerpiece of Kast's economic agenda. Early article-by-article votes approved employment subsidies, elimination of the capital gains tax on low-value stock market sales, and the proposed corporate tax rate cut from 27% to 23% phased over 2027–2029. However, the most contentious clause — a 25-year tax stability guarantee for investments exceeding US$50 million — ran into opposition: Christian Democrats rejected a government compromise to reduce the guarantee to 20 years, leaving the provision's fate in the Senate uncertain. The bill now advances to the Senate, where Kast faces the same structural challenge of constructing a majority in a fragmented chamber where his Partido Republicano holds no absolute majority.