Who Do Puerto Rico's Tax Breaks Help?

This piece continues last week’s: “An Overview of Puerto Rico’s Economic Problems”

First Part of this series: An Overview of Puerto Rico's Economic Problems

Conditions worsened when, in 1996, the U.S. government decided to withdraw the tax benefits of section 936 of the federal tax code, which allowed subsidiaries of U.S. firms operating in Puerto Rico to pay no federal taxes on their Puerto Rican profits, even if those profits were re…