Puerto Rico fears economic downturn from new tax overhaul
SAN JUAN, Puerto Rico (AP) — The sweeping federal tax rewrite approved Wednesday outraged officials in Puerto Rico, who said it threatens to crush the backbone of the island's economy at a time when they need substantial help recovering from Hurricane Maria.
The bill approved by the Republican-controlled House and Senate contains a 12.5 percent tax on intangible assets that could affect dozens of U.S. manufacturing companies operating in the U.S. territory. Puerto Rican officials accused some federal legislators of turning their backs after they visited the U.S. territory post-hurricane and pledged their help.