"The island is getting slapped with new taxes as it drowns in debt and tries to recover from a catastrophic hurricane."
"WASHINGTON -- The hits just keep coming for Puerto Rico.
As the U.S. island struggles to climb out of a $70 billion debt crisis and recover from the devastation of Hurricane Maria, House Republicans voted Wednesday to impose a 12.5 percent tax on intellectual property income made by U.S. companies operating on the island and a minimum 10 percent tax on their profits in Puerto Rico. The Senate passed the bill earlier in the day.
That means that businesses with operations in Puerto Rico will pay higher taxes than their counterparts on the U.S. mainland, which puts industries and jobs on the island at risk.
The provision, tucked into the GOP’s tax reform bill, was intended to stop American companies from dodging federal taxes by shifting their profits overseas. But because the U.S. tax code treats Puerto Rico as a foreign territory, business operations on the island will get hit."