Governor plans to file tax reform, other measures next week

During Monday’s meeting of the New Progressive Legislative Conference, the treasury secretary provided some scenarios and figures related to the tax reform proposals aimed at reducing the tax burden on the labor sector and the working class.

By The Star Staff

Gov. Jenniffer González Colón met on Monday with the New Progressive Party Legislative Conference to discuss the agenda for the year’s second session, including the proposed tax overhaul.

“The discussion included several bills that had been approved in previous sessions but are still pending. These include a freeze on the inventory tax, increases in reductions for Individual Retirement Accounts (IRAs) for education and for individuals with disabilities, as well as the imposition and extension of Act 60,” the governor stated during a press conference. “Additionally, the proposal to increase the tax that investors pay to 4 percent while lowering local investor contributions was also covered. These are just some of the bills that remained pending due to the volume of legislation approved in prior sessions.”

“For this session, we are filing six bills that will be accompanied by tax reform measures that we plan to present next week,” González Colón said.

During the meeting, Treasury Secretary Ángel Pantoja Rodríguez provided some scenarios and figures related to the tax reform proposals aimed at reducing the tax burden on the labor sector and the working class.

“Puerto Rico currently pays one of the highest tax rates in the nation at 33 percent,” he added.

González Colón expressed her hope that the costs associated with the tax changes will be offset by savings in government spending, although the estimated cost of the tax initiative remains unclear at this time.

“In addition to these essential tax reform proposals, we are also introducing six additional measures. Among them is the creation of a chief financial officer position within the Department of Education, which aims to lessen the government’s current expenses related to hiring third-party groups for fiduciary tasks,” the governor noted. “This session will also address legislation benefiting senior citizens. Currently, seniors must submit multiple documents to qualify for an express line identification process for themselves and individuals with disabilities. We intend to simplify this by consolidating everything into a single identification.”

Furthermore, changes regarding child sexual offenders were discussed. Currently, individuals released back into the community after serving time are required to report to a police station to notify authorities of their residence. However, they are often released on Friday afternoons, making it difficult for them to complete this requirement in a timely manner. The new legislation will mandate that these offenders register within 24 hours at a police station and will change the release day to Mondays, ensuring that the public is informed about the whereabouts of the individuals.

Another legislative measure will focus on reversing the merger of the Tourism Company with the Department of Economic Development and Commerce.