Puerto Rico Suffers From ‘Hypocritical’ Tax Bill, Officials Say
- Rossello promises that the plan’s supporters will be singed
- Measure raises the cost of manufacturing on stricken island
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The Republican tax plan will erode the foundation of Puerto Rico’s most important industry and politicians who support it will pay a price at the polls, local officials said over the weekend.
A new levy aimed at companies’ income from intellectual property that’s held in offshore tax havens will also hit the bankrupt, storm-ravaged commonwealth, making it more expensive for pharmaceutical companies to manufacture their drugs there. Drug and medical-device makers have poured billions into the U.S. territory, creating thousands of jobs and driving almost a third of its economic output.