Letter urging The Governor of Puerto Rico to to veto Substitute Bill 2526

The Honorable Luis Fortuño
The Governor of Puerto Rico
1100 17th Street, NW, Suite 800
Washington, DC 20036

Dear Governor Fortuño:

The U.S. Chamber of Commerce, the world’s largest business federation representing the interests of more than three million businesses and organizations of every size, sector, and region, urges you to veto Substitute Bill 2526. This legislation would impose a punitive tax on foreign companies doing business in Puerto Rico, drastically changing longstanding tax law.

This punitive and discriminatory tax on foreign companies operating in Puerto Rico will hurt companies with foreign investment in Puerto Rico, hinder their ability to create jobs, and ultimately hurt the ability of Puerto Rico to attract investment. By imposing a discriminatory new tax, without notice or the benefit of public hearings, a negative message is sent to new and existing investment in Puerto Rico. A strong incentive is created for foreign companies to look elsewhere for their manufacturing and distribution.

This new tax increase will profoundly affect the decision-making of foreign corporations as they consider whether to continue to do business and deploy their capital in Puerto Rico. An ad hoc tax passed without notice, after the start of the
fiscal year, which takes effect in less than three months, will wreck havoc on the business and tax planning of companies in a time of increasing uncertainty in the global economy creating a hostile tax environment in Puerto Rico.

The Chamber strongly opposes Puerto Rico’s new tax hike on foreign businesses. We strongly urge you to veto the legislation enacting this discriminatory and punitive tax.

Sincerely,

Thomas J. Donohue

cc: Mr. Richard Figueroa, Executive Director
Ms. Elsa Luis, Director of Federal Proposals
Mr. Rich Stanton, Director of Government Affairs