[Congressional Record Volume 142, Number 134 (Wednesday, September 25, 1996)]
[Extensions of Remarks]
[Pages E1688-E1689]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                  ECONOMIC DEVELOPMENT IN PUERTO RICO

                                 ______
                                 

                         HON. NANCY L. JOHNSON

                             of connecticut

                    in the house of representatives

                      Tuesday, September 24, 1996

  Mrs. JOHNSON of Connecticut. Mr. Speaker, Congress took dramatic 
action last month in the Small Business Job Protection Act

[[Page E1689]]

(Public Law 104-188) by eliminating the principal tax incentive for 
economic development in Puerto Rico, section 936 of the Internal 
Revenue Code. While I supported this measure, it was unfortunate that 
we could not use this opportunity to construct a long-term replacement 
incentive program, as urged by Puerto Rico Governor Pedro Rossello. I 
believe it is very important that we return to this subject in the next 
Congress to build a new long-term economic incentive for Puerto Rico 
using as its base the new section 30A of the Tax Code, which we 
established in the small business legislation.
  There is consensus that the job creation incentives in section 30A, 
while a useful start, do not provide the dynamic incentives needed by 
the 3.7 million American citizens of Puerto Rico to become economically 
self sufficient. along with Ways and Means Committee Chairman Bill 
Archer, I would like to work with Governor Rossello and other elected 
leaders of Puerto Rico to develop a sound long-term economic program to 
achieve this goal.
  Although section 936 has been eliminated because its benefits were 
deemed overly generous in the current budgetary climate, the last 
chapter for Puerto Rico economic incentives has not been written. I 
look forward to working in the next Congress toward long-term, 
effective incentives that foster new investment and create high-quality 
jobs in Puerto Rico.

                          ____________________