Solves biotech

With the repealing of the 936 tax incentives Puerto Rico lost its market share in the pharmaceutical industry. Companies opted to move their operations abroad seeking the tax benefits Puerto Rico no longer offered. The state run economies in China and India benefit from the government pumping billions of dollars into the industry, thus effectively controlling the industry. Ireland’s economy, on the other hand, is free market-based, and it is its tax incentive policy –its corporate rate tax is almost zero– what has attracted the manufacturing companies. “That is why we need tax incentives –new tax incentives or maybe old tax incentives– back in place in the US to move Puerto Rico into its former position of leadership [in the industry],” said DePhillips. Nevertheless, the executive admitted that, while legislation to incentivize manufacturing can be replicated in other parts of the US, he is aware that many members of Congress do not want to do anything that could benefit Puerto Rico. But then again, why Puerto Rico and not some other state? “Puerto Rico still has the deepest pharmaceutical manufacturing infrastructure, when compared to any other state in the US. Puerto Rico is still dominant should it be compared to North Carolina, New Jersey or Massachusetts,” said DePhillips, who was quick to admit that even though the infrastructure is still here, “it needs to be modernize.” Hughes coincided and emphasized tax incentives are also needed. “In order to compete effectively with those low tax jurisdictions we need the incentives. The government has taken a good step towards that with the 15% global minimum tax, which would put everybody on a leveled playing field. The next step should be how to incentivize those pharmaceutical companies to abandon what they have already established [abroad] and come here,” Hughes said.