Puerto Rico Governor Pedro Pierluisi on Monday unveiled a sweeping tax reform proposal that would slash individual and corporate rates and simplify the US territory’s tax code, Bloomberg News reported. Under the proposal, Puerto Rico’s maximum tax rate for individuals would be reduced from 33% to 30%. The marginal corporate tax rate, now 37.5%, would change to between 17% and 33%, depending on the size of the business. Altogether, the plan would save taxpayers about $545.5 million, Pierluisi said in a statement. It comes as the island of 3.2 million people — which saw its population decline 12% from 2010 to 2020 amid hurricanes, earthquakes and power outages — emerges from a historic bankruptcy. The proposal also includes additional tax cuts for seniors and changes to the sales and import tax, known as the IVU, that would make it a simplified sales tax.
