Puerto Rico – The Hits Just Keep On Coming

Not only is the Puerto Rico government carrying over $70 billion in Puerto Rico debt and $40 billion in unfunded pension liabilities, the recent tax bill just signed by President Trump has called for a 12.5% tax on intellectual property income made by companies operating in Puerto Rico. After being battered a few months ago by hurricane Maria which devastated the Island Commonwealth’s power infrastructure, Puerto Rico is continuing to take hits financially. The tax bill would make it less attractive for companies in Puerto Rico to stay there, thus adding another blow to the economy. “We’re pretty much just getting ready for Maria Part 2,” according to one economist in Puerto Rico, quoted recently by CNBC. Puerto Rico is desperate for any source of revenues to sustain itself, but the tax provision is likely to hurt its economy and stifle any investment in the island by manufacturing companies. Indeed, the new tax plan will cause a tremendous amount of…

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