Big tax cuts for Puerto Rico

The government in Puerto Rico has signed into law what has been described as the largest tax relief in the history of the country.



The broad package of tax cuts is aimed at spurring economic growth.



Governor Luis Fortuno says the $1.2 billion in annual tax cuts translate to an average savings of 50 per cent for individuals and 30 per cent for businesses.



He is betting that tax reform will help push the Puerto Rican economy, which has been in recession during the last few years, back into positive terrain in 2011.



Those earning $20,000 or less will pay no taxes until 2016.



However, critics say the plan is fiscally irresponsible.