Puerto Rico Governor Pushes Sales Tax Increase

Puerto Rico's governor says he has agreed to a compromise deal on a tax hike for the deeply indebted U.S. territory after his initial plan for a value-added tax was shot down by the legislature.
Gov. Alejandro Garcia Padilla said late Thursday that a majority of members of his party had agreed to back a bill that would increase the sales and use tax from 7 percent to 11.5 percent as part of an effort to rescue a government in danger of running out of funds.
Garcia said the measure also would include a new 4 percent tax on professional services that have not been defined, although officials said health and education services would be exempt.