SAN JUAN, Puerto Rico — Puerto Rico’s governor signed a bill on Monday to overhaul the U.S. territory’s tax laws in a bid to attract foreign investment and help workers and some business owners amid a 12-year recession. The bill creates an earned income tax credit, reduces a sales tax on prepared food and eliminates a business-to-business tax for small to medium companies, among other things. Nearly 80 percent of businesses in Puerto Rico will benefit from that measure, added Treasury Secretary Teresa Fuentes. “Today marks an important day for maintaining Puerto Rico’s competitiveness,” she said. Antonio Fernos, a Puerto Rico economics and finance professor, questioned the effectiveness of the new law, which appears to generate less overall revenue.

Source: Washington Post December 10, 2018 19:52 UTC