Frank "frank writes:
On 5/20/2021 2:32 PM, wrote:
On Thursday, May 20, 2021 at 2:22:40 PM UTC-4, Frank wrote:

It is stupid to be fully reliant on the Chicoms for anything.

You're not wrong about that. What's your proposal for rectifying
the situation?

Cindy Hamilton


Well one for example is pharmaceuticals. There was a deal with Puerto
Rico that made it economical to manufacture there but removed under
Clinton and manufacture went to China.

You may want to read your own Citations. The bill, which President
Clinton signed was authored, in the senate, by Senator Roth (R.).

SMALL BUSINESS JOB PROTECTION ACT OF 1996 (report 104-281).

You can find it by searching for Rpt104-281.pdf, specifically
see page 108 for the Revenue Offset change in question.

" Certain domestic corporations with business operations in the
U.S. possessions (including, for this purpose, Puerto Rico and the
U.S. Virgin Islands) may elect the Puerto Rico and possession tax
credit which generally eliminates the U.S. tax on certain income re-
lated to their operations in the possessions. In contrast to the for-
eign tax credit, the Puerto Rico and possession tax credit is a ``tax
sparing'' credit. That is, the credit is granted whether or not the
electing corporation pays income tax to the possession. Income eli-
gible for the credit under this provision falls into two broad cat-
egories: (1) possession business income, which is derived from the
active conduct of a trade or business within a U.S. possession or
from the sale or exchange of substantially all of the assets that
were used in such a trade or business; and (2) qualified possession
source investment income (``QPSII''), which is attributable to the in-
vestment in the possession or in certain Caribbean Basin countries
of funds derived from the active conduct of a possession business."



It contains far more than just the repeal of the zero tax rate
on companies in PR.

What the Forbes article glosses over is:

" In order to qualify for the Puerto Rico and possession tax credit
for a taxable year, a domestic corporation must satisfy two condi-
tions. First, the corporation must derive at least 80 percent of its
gross income for the three-year period immediately preceding the
close of the taxable year from sources within a possession. Second,
the corporation must derive at least 75 percent of its gross income
for that same period from the active conduct of a possession busi-
ness."

Reasons for Change

" The tax benefits provided by the Puerto Rico and possession tax
credit are enjoyed by only the relatively small number of U.S. cor-
porations that operate in the possessions. The Committee is con-
cerned that the high cost of these tax benefits is borne by all U.S.
taxpayers. In light of current budget constraints, the Committee
believes that the tax exemption provided to corporations pursuant
to the Puerto Rico and possession tax credit should be modified."




https://www.forbes.com/sites/theapot...h=5c0aeabf2a40

Another is rare earths. We have them in the US but manufacture is very
dirty. I have a neighbor who has been to practically every city in
China and says it is hard to breathe in any of them. We can do better
than that.