Founder and Chairman of Laffer Associates Dr. Arthur Laffer and FreedomWorks Senior Economic Contributor Stephen Moore have released a study on how Congress can responsibly address the severe debt issues facing Puerto Rico. The study, “How Congress Can Save Puerto Rico from Insolvency,” was sent to House leadership, members of the House Natural Resources Committee, and members of the House Freedom Caucus.
“Puerto Rico faces an extreme crisis. Unemployment is at nearly 12 percent and the labor participation rate is at a depressing 41 percent. Politicizing this crisis, as Nancy Pelosi and Democrats are doing, doesn’t solve anything. Congress must pass a bill that protects taxpayers and respects the Constitution,” said Dr. Laffer. “Pro-growth policies that rein in Puerto Rico’s runaway spending and reform its tax code will give the island a needed burst and restore confidence to investors.”
“This study offers conservative guidelines on how Congress can address the debt crisis in Puerto Rico in a way that respects the rule of law, taxpayers, and the markets. American taxpayers shouldn’t be responsible for the bad decisions made by the Puerto Rican government,” said Moore. “Congress should, however, establish an independent financial oversight board to help the island develop a balanced budget and restructure its debt in a way that respects the legal rights of creditors. We also encourage Puerto Rico to implement pro-growth economic reforms that restore prosperity and opportunity for its citizens.”
The study is available here.
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FreedomWorks Letter to Congress in Support of Fiscal Commision Act (H.R. 5779)