WASHINGTON — A group of Democratic lawmakers are asking for tax relief for hurricane-stricken Puerto Rico and the U.S. Virgin Islands, saying people and businesses in the two U.S. territories don’t enjoy the same benefits as those in the mainland.
The lawmakers are asking Rep. Kevin Brady, R-Texas, head of the tax-writing House Ways and Means Committee, to work on legislation that would, for example, extend the earned income tax credit for low- to moderate-income workers to Puerto Rico and increase the amounts paid under the low-income housing tax credit.
The House last week passed a $36.5 billion disaster aid package for Puerto Rico and the U.S. Virgin Islands. But that relief was “paltry” for the territories’ residents “given that they are not able to avail themselves of some of the tax benefits we typically provide,” said the lawmakers led by Democratic Reps. Joe Crowley and Nydia Velazquez.
The request comes as Congress prepares to craft into legislation a nearly $6 trillion tax overhaul plan pushed by President Donald Trump and GOP leaders. The plan, which Republicans view as an imperative for them to prevail in next year’s midterm elections, proposes to nearly double the standard deduction, to $12,000 for individuals and $24,000 for families; dramatically cut taxes for corporations and potentially for individuals; shrink the number of personal income brackets; and simplify the tax system.