Name: Section 936 and how it messed up Puerto Rico - Pasquines
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Section 936 and how it messed up Puerto Rico - Pasquines

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The article has a lot right but, as someone who worked in the White House &amp; Congress and who dealt with the issue from 1979 or ’80 through 2001 and has since, a few points in the order that they appear: Pres. Clinton cut the 936 tax credit from equal to all tax due to 40% of that and proposed a tax credit based on wages &amp; investments in Puerto Rico. The Republican Congress later insisted on a full phase-out and added it to a minimum wage increase bill the President wanted. 936 was originally enacted “to encourage job-creating investments in Puerto Rico” as well as to reform a tax exemption under Sec. 931. But companies abused 936 by shifting income really earned in the States, where it would be taxed, to the territory and moving production from the States to the islands, where it would be exempt from tax. The end of 936 didn’t cause Puerto Rico’s manufacturing job losses to foreign locations. International free trade agreements, wage increases, and environmental laws did in the case of low profit-margin industries that required a lot of workers. The type of company that abused 936 stayed in Puerto Rico and avoided taxes by establishing foreign company subsidiaries to take over their plants since the U.S. didn’t tax foreign companies. The 2017 Tax Reform began to tax income shifted from the States to foreign subsidiaries but only at half the tax the income would be taxed at if taxed where it was really earned: the States. Shifted income is $35 B a year of $43 B a year in income claimed in Puerto Rico. The territory taxes the production at one of the lowest rates in the world. Now, companies &amp; status quo politicians are trying to effectively timely recreate 936 by exempting income attributed to the territory but really earned in the States from the new 10.5% Federal tax. The status quo politicians are doing this because such an exemption is only possible as long as Puerto Rico remains an “unincorporated territory” (i.e., possession) of the U.S. Again, however, the article got the most important essence essence right. I look forward to the future work of this budding journalist.Thanx for calling out these problems. People in the island forget.Please keep doind the work you do- […] Section 936 and how it messed up Puerto Rico&nbsp;&nbsp;Pasquines […]- […] fact, statehooders advocated for and supported the elimination of Section 936 so that Puerto Rico would be treated more…This site uses Akismet to reduce spam. .Join our mailing list to receive the latest news and updates from our team.

The article has a lot right but, as someone who worked in the White House &amp; Congress and who dealt with the issue from 1979 or ’80 through 2001 and has since, a few points in the order that they appear: Pres. Clinton cut the 936 tax credit from equal to all tax due to 40% of that and proposed a tax credit based on wages &amp; investments in Puerto Rico. The Republican Congress later insisted on a full phase-out and added it to a minimum wage increase bill the President wanted. 936 was originally enacted “to encourage job-creating investments in Puerto Rico” as well as to reform a tax...

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Sasha Slepoy

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Section 936 and how it messed up Puerto Rico - Pasquines

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