Hold Your Pharma Horses
Although much has been written about the throttling of the Internal Revenue Code’s section 936—the 10-year phaseout of the erstwhile tax break, which concluded in 2006, marks the epicenter of the Puerto Rico economy’s precipitous decline into depression—a legacy of skilled labor and world-renowned biopharma operations remain in place. We hold these big-pharma truths to be self-evident.
One need only read this edition’s cover story to comprehend that companies remaining in Puerto Rico after the 936 dust-up continue to make an enormous contribution to the island’s economy. The numbers provided by the Pharmaceutical Industry Association of Puerto Rico tell the story.
Estudios Técnicos researchers conducting the study told this journal that the biopharma industry on the island represents $10 billion in capital investments, 500 million in the maintenance of facilities each year and $750 million spent in purchasing local products and services annually. Importantly, the sector’s companies contribute more than $3 billion in taxes to Hacienda, which represents more than a third of Puerto Rico’s tax base.
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