Puerto Rican schools, government offices close (AP/CNN) {out of money}

[eppur_se_muova]

Governor, lawmakers fail to reach deal to avert financial crisis

Monday, May 1, 2006; Posted: 10:17 a.m. EDT (14:17 GMT)

SAN JUAN, Puerto Rico (AP) -- The government of Puerto Rico ran out of money Monday, forcing the U.S. commonwealth to close public schools and shut down government offices, putting almost 100,000 people out of work.

The legislature and governor failed to reach a last-minute accord that would have averted the first-ever partial shutdown of the government in island history.

All 1,600 public schools on the island were closed two weeks before the end of the academic year, and 43 government agencies were shut down after negotiations between lawmakers and Gov. Anibal Acevedo Vila failed.
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Puerto Rico has a $740 million budget shortfall because the legislature and the governor have been unable to agree on a spending plan since 2004.
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Members of the New Progressive Party, which controls the legislature, have blamed the governor for the crisis. The two sides never agreed on the 2005 or 2006 budgets, and the government is using the 2004 budget to operate as debts pile up.
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more: http://www.cnn.com/2006/WORLD/americas/05/01/puerto.rico.shutdown.ap/index.html

[Bacchus39]

1. PR no sales tax

I could never understand why there wasn't a sales tax before. I suspect it was related to the PR status issue. but the situation on the ground appears to force their hand. PR has an income tax like ours but frankly there is an extreme amount of abuse and dishonesty.

the income taxes are high, not like our own State taxes. I am quite certain that the PR income tax is higher than the Federal income tax here in the States.


I suspect that the proposed sales tax will be in addition to the income tax and not replace it. I don't know. regardless, it seems the sales tax is a more reliable way of acquiring funds than the ineffective income tax system.