Those who are interested in the tax breaks Puerto Rico offers people who move here and set up encouraged businesses, will be happy to know that the Senate has killed the increased rates I warned had been passed by the House. I have this from multiple sources in the government.
For now, the 4% corporate rate and the 0% individual capital gains and passive income tax rates remain intact.
Those thinking about making the move have time to act with due diligence and care.
Of course, the populist politicians who tried to raise the rates won’t give up. I expect them to keep trying. “Tax the rich” always plays well with the larger mass of voters. So, while the immediate threat to the program has passed, it’s clear that it’s best for those interested to visit and decide—the sooner the better. They’ll want to apply and get their rates set in legal stone before the hurdles are raised and the benefits are reduced for new applicants.
Monday, November 5, 6:06pm, EDT, 2018