Federal Tax Plan Could Cause Problems For Puerto Rico’s Medical Manufacturers And Hurricane Recovery
[...] after Hurricane Maria, manufacturers in Puerto Rico are now facing what some are calling a potential man-made disaster. It's a provision in the tax bill that recently passed the House that would impose a 20 percent tax on goods made in Puerto Rico and shipped to the U.S. mainland. Puerto Rico's Gov. Ricardo Rosselló and nonvoting representative in Congress, Jenniffer González, lobbied hard against that provision. González says she's received assurances from Republican leaders that if the measure passes the Senate, the part affecting Puerto Rico will be fixed before final passage.
Manufacturing makes up about half of Puerto Rico's economy. A decade ago, Congress phased out an important tax break that attracted manufacturers — especially pharmaceutical and medical device companies — to the island. Since then, many companies have left. If this new provision becomes law, Julio Benitez, with Puerto Rico's economic development agency, says he worries that many other manufacturers may follow suit. [...]biotechnology health care finance pharmaceuticals public health regulation