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and by tax incentives, U.S. firms have invested heavily in Puerto Rico since the 1950's. As a result, Puerto Rico's export and import has prospered nearly doubling between fiscal years 1987 and 1997.
Recently the economy has suffered budget cuts from U.S. The Puerto Rican economy has depended heavily on the tax incentives given to U.S. mainland companies and on federal transfers. In 1993, President Clinton aimed to cut the Section 936 tax exemption for U.S. companies and introduced legislation to Congress to replace it with a more modest tax credit linked to wages paid by those companies in Puerto Rico rather than to profits...
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