The last 8 days have left a lot of us scratching our heads after listening to our newly elected Gov. recite the recommendations outlined by his panel of "gurus". Bottom line we our left begging the question "Do I continue to invest in Puerto Rico" or hold on to the cash or credit; or invest in a more business friendly environment.
The problem for business in Puerto Rico is the hostile environment in which we must operate. The inefficient bureaucracy and the apathy of the government agencies towards the small businessman make it very difficult to get motivated and invest in Puerto Rico.
After sitting down with various small business owner this is the consensus I can gather as to some of the measures which could assist in keeping capital in Puerto Rico and motivating us to invest.
IVU: Crank it to 10% fine. But you must exempt items such as food, medicine, and essentials. This must be accompanied by a reduction in the income tax like in the mainland up to 250k. Contrary to popular belief there is a growing number of islanders in this bracket and who like to spend and spend alot on goods in the island. Keep them here don't force them to move stateside.
GAS TAX: I'm for it if and only if it will be used to facilitate alternate transportation methods, funds infrastructure and bonds to create jobs developing this infrastructure to alleviate our traffic problems and huge dependence on spending on gasoline for our cars to get from point a to b.
CORPORATE TAX: lower the tax bracket for small business in the 5-8 million dollar range. These business are the engine which drive the economy. Give these small businesses incentives to invest and keep personnel.
CRIM: Do away with the tax for inventory and capital. Its already has been taxed and only works to keep industry from investing in new capital. It is archaic and it is anti capitalistic anti investment.
SIN TAX: Use it to assist in funding health reform. Concentrate on preventive medicine, preventive care, in the short and long term much more cheaper and effective in controlling health care cost.
CFSE: Privatize. Take the heat and and just do it. The system is only used as a cash cow to balance the budget. Workers benefits are dismal, Fees charged are outrageous, and the salaries of the employees of this agency are disproportionate with the industry standard.
AEE: Privatize. If the UTIER goes on strike do like Reagan fire all of them declare a national emergency and sell the damn agency. It has only brought grief and despair to the people of Puerto Rico.
HACIENDA: You hired John Wayne when we need Gary Cooper. Contrary to what the secretary of hacienda is touting intimidation and gun slinging is not the way to gain the trust of the people. The system is everything you can wish for to create evasion and trickery. I have dealt with the IRS and as long as you do not ignore them they will for the most part work with you. At the end of the day they want revenue. So create an atmosphere and system where this is the standard, the norm, the rule. And please eliminate the archaic and ridiculous system of "collecturias". What a waste of time, money, energy and funds.
Mr. Governor figure out the losses. Do you think you will be able to count with the union votes come election time 2012. NO. Regardless of what you concede they, the Unions will not back you. Same for the Hostosiano, and 50% of the Government workers so why accommodate a minority which played NO part in getting you elected.
In closing please do not tell us you are implementing these measures to save the jobs of government employees. We do not care to save agencies which are bloated with lazy inefficient bureaucrats. Government MUST BE DOWNSIZED. Our tax dollars cannot continue to be squandered to to pay for government workers; attrition, hiring freeze and merging of agencies is the alternative.
So, you ask me "Do we trust Puerto Rico so as to invest" right now my answer is NO. If you cannot convince me and those who drive the economy we will seek other places and alternatives to invest, only because we can and the big loser will be Puerto Rico.
Saturday, January 10, 2009
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