Economy of Puerto Rico

15, 2006, a 5.5% sales tax was implemented. Municipalities are required by law to apply a municipal sales tax of 1.5% bringing the total sales tax to 7%.

Tourism is an important component of Puerto Rican economy supplying an approximate $1.8 billion. In 1999, an estimated 5 million tourists visited the island, most from the U.S. Nearly a third of these are cruise ship passengers. A steady increase in hotel registrations since 1998 and the construction of new hotels and new tourism projects, such as the Puerto Rico Convention Center, indicate the current strength of the tourism industry. In 2009, tourism accounted for nearly 7% of the islands' gross national product.

Puerto Ricans had median household income of $18,314 for 2009, which makes Puerto Rico's economy comparable to the independent nations of Latvia or Poland. By comparison, the poorest state of the Union, Mississippi, had median household income of $36,646 in 2009. Nevertheless, Puerto Rico's GDP per capita compares favorably to other independent Caribbean nations, and is one of the highest in North America. See List of North American countries by GDP per capita.

Puerto Rico's public debt has grown at a faster pace than the growth of its economy, reaching $46.7 billion in 2008. In January 2009, Luis Fortuño enacted several measures aimed at eliminating the government's $3.3 billion deficit, including laying off 12,505 government employees. Puerto Rico's unemployment rate was 15.9 percent in January 2010. Some analysts said they expect the government's layoffs to propel that rate to 17 percent.

In November 2010, Gov. Fortuño proposed a tax reform plan that would be implemented in a six-year period, retroactive to January 1, 2010. The first phase, applicable to year 2010, reduces taxes to all individual taxpayers by 7–15%. By year 2016, average relief for individual taxpayers will represent a 50% tax cut and a 30% cut for corporate taxpayers, whose tax rate will be lowered