It seems the extremely unpopular GOP tax plan proverbially kicks a man, or in this case Puerto Rico, when they’re down.
As the U.S. island territory struggles to recover from a $70 billion debt and the devastation left by Hurricane Maria, House Republicans voted for a 12.5 percent tax on intellectual property income of U.S. companies on the island and a minimum 10 percent tax on their profits in Puerto Rico. Senate Republicans passed the bill earlier Wednesday.
U.S. businesses with operations in Puerto Rico, a U.S. territory, will pay higher taxes than their counterparts on the U.S. mainland. This puts industries and jobs on the island at risk.
Tucked into the GOP’s tax reform bill, the additional tax intended to stop American companies 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 get hit.
Puerto Rico, Day 91:
—Millions of people still w/o power
—Hundreds of thousands still w/o clean water
—Still a humanitarian emergency
The just-passed GOP tax bill places new and unfair penalties on half of the island’s economy. Kicking PR while it’s down.https://t.co/Vw5JCnNbah
— Eric Holthaus (@EricHolthaus) December 20, 2017
Puerto Rico leaders asked Republicans to exempt the island given its fragile economy. Three months after Hurricane Maria, more than 1 million Americans there still have no electricity, more than 250,000 are still without clean water, and more than 1,000 Americans died.
One estimate says that the Republican tax bill could cost Puerto Rico up to 200,000 jobs.
That would be on top of the 32,000 jobs already lost since Hurricane Maria. https://t.co/MqDDoO56ia
— Kyle Griffin (@kylegriffin1) December 20, 2017
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