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Article: Clinton Targets Territories' Tax Break; Puerto Rico, Drug Firms Fear Impact
- Article from:
- The Washington Post
- Article date:
- February 24, 1993
- Author:
CopyrightThis material is published under license from the Washington Post. All inquiries regarding rights should be directed to the Washington Post. (Hide copyright information)
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President Clinton, trying to raise revenue and discourage the
flight of jobs and investment capital, has proposed to sharply reduce
a tax break going to companies with factories in Puerto Rico and
other U.S. possessions.
If approved by Congress, the measure would have the biggest impact
on the U.S. pharmaceutical industry, which has been producing many of
the world's most widely distributed drugs in Puerto Rico virtually
tax free, according to administration officials and drug industry
analysts.
Under current law, U.S. companies may set up manufacturing
subsidiaries in Puerto Rico or other U.S. possessions, ship the
products from those operations back to the mainland, and pay no
federal ...