Annotations for Subject-headings: Tax Incentives

Puerto Rico's governor, Pedro Rosselló, also came to Washington to lobby Congress. Rosselló wants the US government to maintain Section 936 of the US tax code. Section 936 allows US companies operating in Puerto Rico to go without paying taxes for 10 years. From Washington, Patricia Guadalupe has more.

Section 936 was originally planned as a post-World War II economic incentive to industrialize the once agricultural economy of Puerto Rico. Section 936 is viewed by many lawmakers, including President Clinton, as an unnecessary tax shelter. According to congressional figures, eliminating Section 936 would add more than 6 billion to the US Treasury. President Clinton has proposed eliminating Section 936, but Puerto Rico's governor Pedro Rosselló believes that would spell economic disaster for the island. Rosselló says Puerto Rico's unemployment rate, now at 18%, double the US average, would rise sharply. Over a third of the island's workforce is employed by Section 936 companies. Rosselló met with New York Democrat Daniel Patrick Moynihan, chairman of the Senate Finance Committee.

What we asked him to do was to include a two-option plan. Also, that the level of contribution from Section 936 is new revenues to treasury be kept in the range of 3 billion dollars over the next five years.

Some proposals include keeping Section 936 revenues in Puerto Rico to help pay for a national healthcare plan. For Latino USA, I'm Patricia Guadalupe in Washington.

President Clinton say some recent polls is rapidly losing popularity with the American public. The president, for his part, says it's just that people don't understand his economic plan. Well, here at Latino USA, we wondered how US Latinos, who in November voted overwhelmingly for candidate Clinton, feel about the President's performance so far. Our first informal sampling comes from the small border community of Clint, Texas, just outside El Paso.

I'm Maria Martin. Clint Texas is a small working-class border community, quiet on a warm Saturday afternoon. Those people I spoke with fell into two categories. One, the politically apathetic, and two, those who felt that any judgment on the President is premature.

It's going to take time. It can be done in one day.

To me, it's all the same. I'm just waiting to see what kind of taxes he brings up because I am opening up my own business.

Yeah, I'm happy. We need a change. He's doing a good job.

Well, he's doing okay in some things and the other things he's not because well, he needs people to back him up.

He can't do everything the way it was. I tell you one thing, he was messed up. Our nation was pretty messed up. How can he fix in less than a year. He can't.

[Background--Sounds--Nature] I'm Emilio San Pedro in Wynwood, a predominantly Puerto Rican neighborhood just north of downtown Miami, Florida. Here, reaction to President Clinton's performance was mixed.

I don't know if it's too early in the year to feel the effects, but up to now I haven't felt any and I haven't seen that my community has felt anything that he's promised. I don't think he's made any changes, and we haven't felt any in the Hispanic community.

[Translation--Dub--English] Well, I think he's doing all right because it's only his first months in office.

[Translation--Dub--English] Well, I'll tell you with all my heart. I voted for Clinton because I hoped for a change, but the truth is I see things worse every day.

[Translation--Dub--English] He's going to have to raise taxes. I voted for Bush. Don't blame me.

People here in suburban Monterey Park, in Eastern LA County, are divided over the issue of President Clinton's performance on the job, with most willing to give him more time. Some felt he needed more on-the-job experience.

I think he's doing well. Everyone's saying that he's doing bad, but I think he's going to go through with it. He's going to take care of everything and improve it. They'll see, everyone's going to see how he's going to do good.

I think he's doing in between. I'm not really satisfied with everything he's doing, but he's our president, so we have to pull for him, stay together with him.

Since I saw him that he was elected, I like him because he is sincere and he tells you, he says what he thinks, and it's right for the people.

[Spanish speaking--sounds--dubbing] But with the country the way it is, it's impossible for things to get fixed in a moment. Really. It's too soon to say whether he's a good or a bad president.

In Monterey Park, reporting for Latino USA, this is Alberto Aguilar.

President Clinton says 936 is an unnecessary tax shelter, which slaps the US Treasury of billions of dollars in revenue. Government officials in Puerto Rico disagree. From Washington, Patricia Guadalupe reports.

Puerto Rico's Governor Pedro Rosselló has formed a task force to lobby the Senate, where talks on Section 936 are currently underway. Heading up the task force is Clifford Myatt, director of Fomento, Puerto Rico's economic development agency. Myatt says he's found tremendous confusion on Capitol Hill concerning the issue.

We need 936, so I don't know where that logic comes from. There are others on the other hand who say that any kind of a change in 936 will destroy the island, destroy the economy of Puerto Rico. I don't believe that. To destroy the economy of Puerto Rico just by making a change in 936 is, I think far-fetched.

Puerto Rican Congress members, Jose Serrano and Nydia Velasquez of New York and Luis Gutiérrez of Illinois, together represent almost 2 million Puerto Ricans, a greater number than those living in Puerto Rico's capital. They recently met with President Clinton. Congressman Jose Serrano.

Considering the political status of Puerto Rico, where Puerto Rico is not equipped to have members of Congress discuss their situation, that it falls on us both emotionally and in every other way to discuss this issue. And we brought to the president, again, the concern that we have.

President Clinton told the Congress members he would reexamine his position. According to the White House, they've received more mail on this issue than any other since Clinton became president. For Latino USA, I'm Patricia Guadalupe in Washington.