Washington is finally beginning to ask a question about Puerto Rico that should’ve been asked years ago: are federal disaster recovery dollars being used to rebuild critical infrastructure in the best interests of American taxpayers, or are they being diverted toward corrupt purposes right under our nose?
Puerto Rico receives more disaster recovery funding than any other state, but an illogical and illegal tax is inflating reconstruction costs for the federal government, delaying rebuilding, and redirecting taxpayer dollars to unapproved uses. Allow me to explain.
After Hurricanes Irma and Maria devastated the island nearly a decade ago, Congress began appropriating billions of dollars to rebuild Puerto Rico’s electric grid, strengthen infrastructure against future storms, and help American citizens recover from a historic disaster.
These much-needed funds were intended to help Puerto Ricans, but instead, bankrupt municipalities limited their value by assessing construction excise taxes on recovery projects – including projects undertaken on behalf of tax-exempt public entities. In some cases, local governments have applied these taxes retroactively, years after work was completed.
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