Puerto Rico’s ‘Grossly Unfair’ Tax System Needs Overhaul: Study

As Puerto Rico’s congress contemplates another round of tax reforms, lawmakers should focus on eliminating some of the 424 tax breaks that cost the island about $21 billion a year and have contributed to creating a “grossly unfair and terribly inefficient” system, according to a new report.

In a policy brief released Tuesday, the Center for a New Economy, an island-based think tank, said the U.S. commonwealth’s byzantine tax code undermines competitiveness, penalizes work and hinders entrepreneurial activity.

“It should not surprise us that Puerto Rico’s growth rate has slowed down during the last 25 years, that close to ...