HILL TAX BRIEFING: Puerto Rico Pushes for Tax System Overhaul

Puerto Rico is pushing for a major tax overhaul that would broaden the tax base and simplify a system that features more than 400 tax breaks.

A complex system of tax breaks costs the island’s government more than $23 billion per year, a recent study found.

Before a tax overhaul can happen, there must be a plan for dealing with the expiration of a critical excise tax: a 4% tariff on products made in Puerto Rico and acquired by the manufacturers’ parent company. Puerto Rico Treasury Secretary Francisco Pares says he has an agreement with the US Treasury ...