PUERTO RICO: INSIGHTS INTO ECONOMIC DEVELOPMENT POLICY, Volume IV: Action from Washington

Hon. Carlos A. Romero Barceló, a former mayor, governor and senator of Puerto Rico believes that to fix the Puerto Rican economy, the island’s undemocratic territorial status must be put to rest and that those who would put off the status issue until the economy is repaired are delaying and making the recovery more difficult. Furthermore, Arthur MacEwan and J. Tomas Hexner in three articles namely; “Including Puerto Rico in the Earned Income Tax Credit and Full Child Tax Credit”, “Fighting Poverty and Promoting Economic Growth by Creating Investment Zones: A Strong Incentive for Private Business to Invest where Investment is Most Needed” and “Puerto Rico: Quantifying Federal Expenditures”, emphasized the need for Puerto Rican island residents to receive the Earned Income Tax Credit (EITC) and full participation in the Child Tax Credit (CTC). Extending these programs fully to Puerto Ricans would provide an important stimulus to the expansion of the island’s economy, both by a direct injection of funds and by their positive impact on labor force participation. Actions should be taken to fight poverty. The Congress should create “Investment Zones” throughout the states and territories of the United States. Investment Zone legislation would be an especially powerful mechanism for attaining one of the principal goals of PROMESA—economic growth in Puerto Rico.