Juan Dalmau Proposes Tax Changes and Law 22 Repeal in Economic Plan for Puerto Rico

Gubernatorial candidate Juan Dalmau unveils economic plan to reform Puerto Rico's tax policies, reduce foreign corporate benefits, and promote local entrepreneurship and food security.

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Mazhar Abbas
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Juan Dalmau Proposes Tax Changes and Law 22 Repeal in Economic Plan for Puerto Rico

Juan Dalmau Proposes Tax Changes and Law 22 Repeal in Economic Plan for Puerto Rico

Juan Dalmau, the gubernatorial candidate for the Puerto Rican Independence Party (PIP), unveiled the first part of his economic plan called 'Patria Nueva' on Monday. The plan aims to make significant changes to Puerto Rico's tax policies, particularly for foreign corporations and investors.

A key proposal in Dalmau's plan is to establish a uniform 15% tax rate on the net income of all foreign corporations operating in Puerto Rico. This would reduce the tax benefits currently enjoyed by many foreign companies on the island. At the same time, Dalmau wants to encourage local entrepreneurship by lowering tax rates for Puerto Rican corporations.

Dalmau developed his economic program with the advice of economist Francisco Catalá Oliveras and former president of the Association of Economists of Puerto Rico Edwin Irizarry Mora. In addition to the corporate tax changes, the plan includes proposals to create a Land Use Plan, promote ecotourism, establish a National Development Fund and a Business Development Company, and reorganize the Department of Agriculture to enhance food security in Puerto Rico.

Another significant aspect of Dalmau's plan is the proposed repeal of Law 22, which provides tax exemptions for foreign real estate investors in Puerto Rico. Dalmau believes Law 22 has contributed to the displacement of historic communities on the island due to rising costs driven by outside investment. "Law 22 has led to the displacement of our people from their communities," Dalmau stated.

Why this matters: Dalmau's economic plan represents a major shift in Puerto Rico's approach to foreign investment and taxation. The proposed changes could have significant implications for the island's economy, local businesses, and communities if implemented.

During his announcement, Dalmau also addressed recent controversies in Puerto Rico's Department of Education, calling the involvement of partisan politics in the public service 'scandalous'. He pledged to have a merit-based government if elected governor in November. "We will put an end to the politicization of our government agencies and ensure that public servants are chosen based on their qualifications and commitment to serving the people of Puerto Rico," Dalmau declared.

Key Takeaways

  • Dalmau proposes 15% tax on foreign corps, lower rates for local firms.
  • Plan aims to repeal Law 22 tax exemptions for foreign real estate investors.
  • Dalmau wants to promote ecotourism, establish development funds, and improve food security.
  • Dalmau pledges merit-based government, end to politicization of public agencies.
  • Dalmau's economic plan represents a major shift in Puerto Rico's approach to foreign investment.