Improving conditions in Puerto Rico
Lost in all the talk of the much-ballyhooed Tax Cuts and Jobs Act of 2017 was any mention of policy regarding improving conditions in the struggling territory of Puerto Rico.
With a crumbling infrastructure that had a 300,000-customer power outage before landfall of any major hurricane this past September, Puerto Rico was losing the economic war to import industry and manufacturing into the picturesque island. It wasn’t a policy failure, as Act No. 20 of 2012, known as the “Export Services Act” provided Puerto Rico an incredibly favorable tax haven for would-be expatriates.
This act had the potential to attract global businesses as it offered a 4 percent corporate tax and 100 percent tax exemption on distributions from earnings and profits, a 90 percent tax exemption from personal property and taxes and a 90 percent tax exemption from property taxes for certain types of businesses.… Seguir leyendo »