Puerto Rico unveils tax cuts to reignite economy

SAN JUAN, Puerto Rico, (Reuters) – Puerto Rico’s  governor on Monday announced plans to cut business and income  taxes by more than a $1 billion annually over the next seven  years in an attempt to jumpstart the U.S. territory’s economy.

Governor Luis Fortuno laid out the plan in a special  address to the Puerto Rican legislature after a weekend vote by  lawmakers to slap a six-year tax hike on offshore manufacturing  firms operating on the island.

Fortuno called the plan the biggest tax relief package in  Puerto Rico’s history and said ordinary taxpayers would see a  50 percent reduction in their taxes when the reform is fully  implemented.