White House says Tax Bill will not Hurt Puerto Rico

Puerto Rico has $120 billion of combined bond and pension debt and near-insolvent public health systems, and filed the largest-ever U.S. government bankruptcy this year. (Kevin Lamarque/Reuters)
Sweeping tax code changes aimed at keeping U.S. companies from shifting profits offshore to avoid taxes will not affect the battered economy of Puerto Rico, a senior White House official said on Wednesday.
Puerto Rico Governor Ricardo Rosselló has said the provisions in a new tax bill passed by Congress could prompt drug and medical device manufacturers to leave the island territory, which is considered a foreign jurisdiction for tax purposes.
“I personally do not think that this is going to hurt Puerto Rico,” the White House official told reporters, speaking on condition of anonymity.
The tax base erosion provisions in the bill provide exemptions for the cost of goods U.S. companies buy offshore, meaning supplies made in Puerto Rico would not be affected, the White House official said.
The manufacturing plants are an economic lifeline for 3.4 million Americans in the territory, where the economy never recovered after Congress in 2006 ended a different set of longstanding business tax breaks.
Puerto Rico has $120 billion of combined bond and pension debt and near-insolvent public health systems, and filed the largest-ever U.S. government bankruptcy this year.
Three months ago, Hurricane Maria slammed into the island, tearing up homes and the power grid and bringing its economy to a halt.
Congress is considering an $81 billion disaster aid bill – some of which is aimed at Puerto Rico – as part of a must-pass government funding bill.
Related Posts
Latest News
-
Being Vigilant of the 7 Benchmarks to end 2022
We are just about to end the fourth quarter of...
- Posted November 22, 2022
-
Inflation Heading Down, What Happens Now?
The Four Benchmarks to review that confirm inflation may be...
- Posted November 14, 2022
-
The Six Factors to Expect during the end of 4Q22
We are deep within the fourth quarter we thought it...
- Posted November 10, 2022
-
Puerto Rico Banks Deliver strong earnings, beating most banks
Puerto Rico Banks Transformed their operational model The Puerto Rico...
- Posted November 9, 2022
-
US Congress Discrimination affecting the Puerto Rico’s Healthcare Ecosystem
The market dynamics that changed the Healthcare Ecosystem as we...
- Posted November 8, 2022
-
MCS contributes over $5 million to support member healthcare
The insurer distributed the amount among 409 community pharmacies in...
- Posted November 7, 2022
-
Droguería Betances Launches 60th Anniversary Ad Campaign
Droguería Betances has launched a new advertising campaign, “60 Reasons...
- Posted October 31, 2022
-
Puerto Rico Food Industry Helps Communities in Aftermath of Hurricane Fiona
Over three-quarters of a million dollars in aid to...
- October 24, 2022
-
Medplus Solutions celebrates 10 years Saving Lives
Innovation and continuous growth Expansion of specialized and more...
- May 18, 2022
-
Amazon Web Services Expands Operations in Puerto Rico
Local Office Will Offer Services to other Caribbean Islands...
- April 22, 2022
-
García Padilla: Rubio Is No Friend of Puerto Rico
Governor Says Rubio's Remarks Confirm he Works for 'Vultures'
- February 26, 2016
- 15
You must be logged in to post a comment Login