House to work promptly on measures to promote a savings culture

Speaker of the Puerto Rico House of Representatives Carlos “Johnny” Méndez Nuñez

By The Star Staff

Speaker of the House of Representatives Carlos “Johnny” Méndez Nuñez announced Sunday that the lower chamber will work swiftly on a package of 13 measures submitted by Gov. Jenniffer González Colón aimed at promoting a culture of savings in Puerto Rico and strengthening nonprofit organizations that address pressing citizen needs, among other things.

“Last Thursday, the governor presented us with the final drafts of this package of measures, the result of extensive studies and analysis. …,” Méndez said. “The implementation of tax reform is essential for our people and small and midsize businesses; these measures are aimed at paving the way for that reform. We have instructed … Finance Committee Chairman Eddie Charbonier to begin the evaluation process with the goal of submitting a report as soon as possible.”

“The measures aimed at increasing the maximum deduction from $500 to $1,000 for contributions to education savings accounts and increasing the maximum contribution to Individual Retirement Accounts, or IRAs, from $5,000 to $7,000 are not only part of our administration’s government program, but are also consistent with our guidelines since 2017. A savings culture is vital to Puerto Rico’s development, and these initiatives will be swiftly addressed in the House of Representatives,” the House speaker said. “Nonprofit organizations are the backbone of the service provided to the people. They provide direct assistance to people that, in some cases, the government, due to its bureaucratic structure, cannot provide expeditiously. Throughout my time in public service, I have defended the work these entities do with no other motivation than the well-being of communities across the island. Therefore, we endorse the bill filed by the governor that amends Section 1101.01 of Act 1-2011 to expedite the granting of tax exemptions to nonprofit organizations at the state level. We will approve this with the urgency it requires.”

Méndez’s remarks came after the governor announced at a press conference the filing of a package of 13 tax-related measures, as part of the groundwork for tax reform.

The measures are aimed at encouraging individuals to save for education and retirement, regulating foreign investment, offering greater benefits to farmers and small businesses, and supporting the efforts of nonprofits.