Puerto Rico is $72 billion in debt, and it will take a painful process to bring the island’s finances back from the brink.
It’s a massive debt load for such a small territory, and the problem can really be traced to one issue — bad tax policy.
After Puerto Rico let one tax break for manufacturers expire almost a decade ago, manufacturers started shutting down operations on the island. That caused a spike in unemployment.
On top of that, business-friendly tax policies for some of the companies that remained allowed multinational giants to pay tax rates of little more than 1%…..