In Brief: Sec. 936 phase-out

Sec. 936 phase-out: House Minority Leader Tom Daschle (D-S.D.) indicates May 24 that creation of a 30A wage-based Puerto Rico tax credit in the House small business tax package makes the 10 year phase-out of the Sec. 936 tax credit more acceptable to Puerto Rico and that he would support the repeal of the Sec. 936 income-based credit. During floor debate, Rep. Carlos Romer-Barcelo (D-P.R.) stated that the Puerto Rican economy demands continuation of the wage-based credit. The wage credit is used heavily by Allergan and Baxter; the majority of the pharmaceutical industry in Puerto Rico, however, is based on the income credit. The bill easily claimed the House by a 414-10 vote on May 23...