The National Association of Manufacturers (NAM) CEO John Engler issued a statement on Oct. 27 on Law 154, which imposes a discriminatory tax on multinational companies operating in Puerto Rico:
"We are alarmed by the actions taken by the Puerto Rican government to impose a new excise tax on multinational manufacturers. Over the years, U.S.-based manufacturers have invested in Puerto Rico, most notably in the chemical, pharmaceutical and biotechnology industries. They represent approximately 80% of all the manufacturing jobs in Puerto Rico and nearly 26% of Puerto Rico's GDP. The imposition of this tax could jeopardize the jobs of over 100,000 people and could damage business relationships that have taken years to develop between the affected companies and the government of Puerto Rico.
Even more concerning is that this law was passed in a period of 48 hours with no public hearings. By increasing costs for these manufacturers, the Puerto Rican government is jeopardizing jobs and economic growth at a time when our global economy is struggling to recover from a crippling recession.
These manufacturers provide stable and high-paying jobs for Puerto Ricans. The Puerto Rican government's decision to impose this discriminatory tax could profoundly impact companies as they consider both existing and future operations."