For years, the United States Hispanic Chamber of Commerce (USHCC) has called for an overhaul of our complicated and burdensome tax code. Today, Congress did exactly that. Thanks to the Tax Cuts and Jobs Act, recently passed through Congress and soon to be signed into law, American businesses and many American families will see their tax rate rates drop. We applaud provisions such as the additional deduction for pass-through businesses and the increase in the child tax credit. We hope that these reforms will generate economic activity, making our nation stronger.
However, the final Tax Cuts and Jobs Act is not perfect.
Despite its many benefits, the new tax plan also includes several provisions that will create undesired outcomes. The USHCC is opposed to the foreign intellectual property tax that will be imposed on Puerto Rico. Because Puerto Rico is a U.S. territory, imposing foreign taxes on the island is unconstitutional. Additionally, like representatives on both sides of the aisle, we are concerned by the potential increase in the deficit. The economic benefits of this new tax code must not be lost to the economic detriment caused by a growing deficit.
We now task our Congressional and Senatorial representatives with mitigating the undesired outcomes that this imperfect legislation could have on American citizens and the American economy. Overall, we congratulate Congress on their ability to pass comprehensive reform, and we celebrate the tax relief for American businesses
About the USHCC
The USHCC actively promotes the economic growth, development, and interests of more than 4.4 million Hispanic-owned businesses, that combined, contribute over $700 billion to the American economy every year. It also advocates on behalf of 260 major American corporations and serves as the umbrella organization for more than 200 local chambers and business associations nationwide. For more information, visit ushcc.com. Follow us on Twitter @USHCC.
United States Hispanic Chamber of Commerce