Comments on: Puerto Rico’s solvency may hang on a potentially unconstitutional corporate tax Bridges, budgets, bonds Mon, 24 Nov 2014 00:29:08 +0000 hourly 1 By: CraigL Mon, 03 Feb 2014 15:52:23 +0000 PR is a commonwealth and can levy any tax it wants. Corporations get a credit for foreign taxes (yes, PR is technically not “foreign” but PR citizens do not vote in federal elections and do not pay federal taxes). So, what is the problem?
The $2B borrowing is being forced on PR by the same clowns from S&P who, in their defense against a federal lawsuit, declared that their ratings “are not indicators of investment merit, are not recommendations to buy, sell or hold any security, and should not be relied upon as investment advice.” So, why do these clowns, along with their friends from Moody’s, wield so much power that they can manipulate a commonwealth of over 3.5M people? Is it because of the CYA, or is it that they have friends on WS who would gladly collect $200M a year in interest on the induced loan?
Instead of describing what is really going on, the media, including this blog, continue to focus on the negatives. Why don’t you write about upcoming Barclay’s underwriting of the new debt or commend the gov for trying to balance the budget a year ahead of schedule? Now, that would be too positive a news in the sea of gloom and doom, wouldn’t it?