Tax-News.com reports on Puerto Rico is taking bold steps towards tax reform: lower income tax rates and a real VAT from April 1, 2015.
“In addition, it is proposed that those on incomes below USD35,000 would get a refund of VAT, and those on incomes below USD20,000 would receive a full refund. Prescription medication, groceries, private property leasing, and public schools would be exempt from all taxes, [said Puerto Rico’s Governor, Alejandro García Padilla].
“With this tax system overhaul we can help direct the island’s revenues towards the future, and ensure that we will borrow less, pay our current debts, and pay down the debt previous administrations committed to without the appropriate means for repayment,” he concluded.”
See more at: http://www.tax-news.com/news/Puerto_Rican_Income_Tax_Rates_To_Fall_Under_VAT____67265.html
Quite a few people that are involved with or affected by this tax reform have been critical of the chances of success – nevertheless it would be great to see how this all works out.