Time for Thorns

An independent view on life.

Walmart vs Puerto Rico…

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The Puerto Rico unit of Walmart has filed suit against the commonwealth’s government,  seeking  to overturn  the new tax increase to 6.5% from 2% on goods imported from offshore affiliates to local companies with gross revenues of more than $2.75 billion.   The complaint claims that the additional levy raised the estimated cumulative income tax  “to an astonishing and unsustainable 91.5% of its net income.”

Under current law,  Puerto Rico can not declare bankruptcy,  even though it is technically bankrupt.   Congress seems unable to enact the necessary legislation,  so it falls to the Supreme Court to slice through the Gordian knot and  enable a  bankruptcy with debt restructuring.

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Written by timeforthorns

December 6, 2015 at 11:53 pm

Posted in Uncategorized

Tagged with , , ,

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