Letter to the WSJ editor:
Regarding Mary Anastasia O’Grady’s “Assault on the Chilean Miracle” (Americas, May 5): I am of German nationality and came to Chile last year, where the startup community was flourishing. I set up our company, a tech startup that optimizes recruitment processes through the automatization of internal referral systems. All was going well until the tax reforms provoked a state of shock among Chilean companies. It now seems that Chilean companies have been put on “stand by” due to the uncertainty of the tax reforms.
Many relatively new companies that have come to Chile to innovate are now struggling due to budget cuts from large, potential clients and will directly suffer because of this reform. The entire entrepreneurial ecosystem that has given the country so much international exposure is currently at stake. This will have a direct impact on the forward-thinking measures Chile has taken over the past years.
I would call it unintended consequences, but, quite frankly, I suspect the outcome is exactly what Bachelet intended.