The Government of Puerto Rico, (supposedly pro-statehood) in a historical move, will join all sectors, including business, political allies and foes, representatives from workers unions, etc., on a trip this week to Washington to lobby for a new amendment to the Federal Internal Revenue Code that will make Puerto Rico a permanent offshore tax haven for multinational corporations and corporate welfare.
This historical joint effort by political sectors, who fiercely oppose each other vehemently on the issue of the status of the island, would consolidate Puerto Rico as a colony of the US. Never have we seen these sectors in Puerto Rico come together to solve any of the serious problems that affect Puerto Rico, including crime, health, education, and especially the solution of the final status of Puerto Rico.
It is especially disappointing to the supporters of the New Progressive Party (pro-statehood) for Puerto Rico who feel sold out by their supposedly pro-statehood leaders. This puts the status of Puerto Rico in a political limbo as a colony of the US. It is common knowledge in Puerto Rico that the “corporate welfare” beneficiaries are very generous with the political sectors in Puerto Rico and have hands on influence on the elections results in the island. This gives them power over the status and economic policies of those that rule Puerto Rico.
Call your Congressman and express your repulse to Corporate Welfare and offshore tax havens who take jobs away from US workers and money from US Taxpayers. Vote against H.R.3020 and changes to IRS Code 933a.
Miriam Ramirez MD
More in Spanish: http://themjreport.blogspot.com/2011/10/enemigos-politicos-van-washington-favor.html
The proposed Bill does not provide a SPECIFIC requirement to create jobs with the repatriated profits. Without this provision, the companies will use the funds to increase dividends and buy back their battered stocks, like they did in 2004.
ReplyDeleteThe junket of business and political leaders from PR coming to DC will only create jobs in hotels and restaurants here, but will not convince the staff in Congress and US Treasury, who know how the companies make job and investment decisions.
For statehood supporters, the Bill is a major strategic blunder. What Fortuno should have proposed is the creation in PR of a federal island-wide enterprise zone, and the full incorporation of PR into the federal tax system.
A federal enterprise zone in PR will provide tax incentives linked to job creation that Congress and the US Treasury can support. An enterprise zone proposal will also burnish the credentials of statehood supporters in the eyes of members of Congress, who can support this idea for their own distressed districts.
Seeking a tax holiday ONLY for PR will contribute to the negative image that PR has in Congress and the US Treasury as an opportunistic tax haven who only cares about itself.
For Fortuno, who portrays himself as a republican leader with national aspirations, supporting a tax haven only for PR is a major step back. Real statehood leaders don't get fooled into this trap.