Article: Clinton Deal Zaps Business Tax Exemptions in Puerto Rico

The free ride is over for American companies in Puerto Rico.

U.S. manufacturing operations will lose much of their tax exempt status in the Caribbean commonwealth as a result of Clinton's newly approved reduced-spending bill.

The loss is hitting locally based firms especially hard. Baxter International is the largest employer in Puerto Rico, with about 6,000 workers at more than 10 facilities.

Sara Lee Corp. is the second largest, with about 5,000 employees. Abbott Laboratories and G.D. Searle & Co., with 2,600 and 500 workers respectively, typify the heavy presence of pharmaceutical companies on the island. For Searle, it is one of their largest facilities worldwide.

Baxter, Abbott ...

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