Crisis over! (Update: Aug. 4, 2006)

Finally after many debates in the local government between parties (PNP and PAVA) a sales tax of 7% was created to cover the crisis in Puerto Rico (see info. below about the crisis in P.R.). Although the sales tax is not completely in vigor, the government of Puerto Rico was granted future loans by their Bank (Banco de Fomento) to cover the government’s actual economical crisis.

Surprisenly even with world wide inflation the sales tax has been accepted by the local public with out complainants. Hopefully the government has learned by their past mistakes and hopefully this sales tax will help to avoid future economical crises in the future in Puerto Rico.

(Info about past crisis, May/July, 2006.)

The Governor of Puerto Rico informed the public that Puerto Rico is just about bankrupted.  This is due to the fact there has been a lot of un-employment on the island every since the Law 936, (tax industry exception  Law) was taken away from the island, due to this a lot of factories have closed down.  The last two govering parties (both PNP and PAVA) took out some big billion dollar loans to create jobs for the public, now those loans have to be paid.  So now they are debating over a new sales tax law to be able to pay those loans or better said, to be able to make another loan to pay the goverment's employees.  One party the PNP wants a 4% sales tax, the govering party (PAVA) wants a 7% sales tax.  So until they come on a agreement, everyone on island lives in a state of un rest.   Right now there are about 250,000 goverment employees that are not even sure if they will get their next pay check, these people are really worried about their future.  You can actually see fear/un rest in some of their eyes. 

Most goverment employees fear losing their jobs, because there has been talk on the news about budget cut backs, reducing the goverment's labor force. Most experts agree that taking another big loan to pay the government’s employees will not resolve the problem, this would only create a bigger debt for the island.  Most agree that the government has to make cut backs in it's budget.

Today, Monday May 1, 2006, since the Senate of Puerto Rico still hasn't reach a agreement on the sales tax law or any other way of paying the government employees, all public schools and most government offices were closed today.  Until the Senate of Puerto Rico reaches a agreement on a law that will provide the funds needed to get another big loan to pay the goverment's employees, all public schools and most government offices will be closed until future notice. 

For the first time in the history of the Puerto Rico, 45 agencies of the government were closed and another 15 agencies in partial form, leaving without seasonal work more than 95,762 workers.  And there is still no sign of the Senate reaching a agreement.

30 of July,2006, there seems to be a sort of a agreement in the local Senate for a 7% to 8% sales tax, but it is still not offical. 

One thing for sure, some sort of offical agreement of this future tax law is needed to give rest to the general public and to give some type of security to Puerto Rico for it's future. 

For more news about Puerto Rico in Spanish, try the "Nuevo Dia's" site at:

http://www.endi.com/

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