Discussion: Hurricane Maria Tears Off Roofs, Unleashes Heavy Flooding In Puerto Rico

Puerto Rico can’t catch a break. I was considering spending the rest of my retirement years in Mexico, Brazil or Puerto Rico in a few years. Most of their economic woes can be attributed to US tax policy:

Because of these generous tax incentives for business, Puerto Rico grew rapidly throughout the 20th century and developed a substantial manufacturing sector, though it remained relatively poor compared to the U.S. mainland. However, because section 936 made foreign investment in Puerto Rico artificially attractive – creating, in effect, an economic bubble – it left the island vulnerable to a crash if the tax provisions were ever to be repealed.

As it happened, section 936 became increasingly unpopular throughout the early 1990s, as many saw it as a way for large corporations to avoid taxes. Ultimately, in 1996, President Clinton signed legislation that phased out section 936 over a ten year period, leaving it to be fully repealed at the beginning of 2006. Without section 936, Puerto Rican subsidiaries of U.S. businesses were subject to the same worldwide corporate income tax as other foreign subsidiary.

Their recession started in 2006 and has never let up. Now, it’ll be worse after the hurricanes. If Puerto Rico had been left to grow organically, they’d be better off.

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I hope our fellow citizens receive the help they need. :cry:

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Has Trump, who may or may not know what or where Puerto Rico is, made any sort of public statement about the people there? Or is he too busy tweeting insane comments about Iran and NK?

President Clinton signed the repeal of Sec. 936 when the GOP congressional majorities passed the repeal. He urged Congress to take measures to pass something to ameliorate the repeal. Notably, some of the pharmaceutical companies that had established in Puerto Rico under Operation Bootstrap and Sec. 936, have elected to remain after the repeal, given their very skilled workforce.