Tuesday, February 24, 2015
Puerto Rico has suffered from an inability to service its debts, as its economy has been in or near recession since 2005. Its population has declined -- especially the working age population -- as residents, who are US citizens, have moved to the mainland to look for work. The governor has proposed an overhaul of the tax system in an attempt to raise revenues.
- Tax breaks for US companies operating in Puerto Rico may be part of a corporate tax overhaul.
- There is little prospect for such legislation this Congress, but a fiscal crunch could spur a separate bill.
- The Democratic party would probably split, as opposition to corporate tax breaks would clash with its Hispanic base.