Puerto Rico’s Unlimited Generosity Towards Rum Companies
In the last six fiscal years, the government has transferred $554.8 million to three rum producing companies in Puerto Rico, related to the rebate the island receives on taxes for rum sold in the United States. But it wasn’t always that way. Until 2009, Puerto Rico used approximately 94% of that money to support economic development on the island. Years after the changes, not only have $434 million been sacrificed at the expense of the General Fund, but that in the midst of an almost decade-long economic recession, the rum industry shows an 11% increase in Puerto Rico, but pays 18% less in taxes to the government.