(Reuters) - Puerto Rico announced on Tuesday night a long awaited overhaul of its tax system as it struggles to revive its moribund economy and stabilize the finances of the indebted island.
Governor Alejandro Garcia Padilla promised "a new tax system" in Puerto Rico, a Caribbean island of 3.6 million that is struggling with debt of over $70 billion. The plan places an emphasis on taxing consumption in a bid to boost collections.
"The tax system that we have penalizes work and productivity while rewarding evasion," the governor said. Only 12,000 people in Puerto Rico report income above $150,000 a year, he said.
(Reporting by a contributor in San Juan; Writing by Edward Krudy; Editing by Chris Reese)