Puerto Rico Gov. Anibal Acevedo Vila last week announced that, if re-elected, he plans to eliminate income taxes for residents earning $30,000 or less and continue two key initiatives: entering Puerto Rico’s lottery system into a concession agreement and decreasing the island’s sales tax to 2.5% from 7%.
Under the governor’s tax-break proposal, residents in the lower tax brackets would not be required to file a tax return, with individuals making $30,000 or less and households earning $60,000 or less free from taxation. Those earners account for 70% of the commonwealth’s tax base of roughly one million, according to Alfredo Salazar, who is running alongside Acevedo Vila on the Popular Democratic Party ticket for resident commissioner, Puerto Rico’s non-voting congressional representative. Salazar is the former acting president of the Government Development Bank for Puerto Rico, the island’s financial adviser.