The Rum Excise Tax Cover-Over: Legislative History and Current Issues (English Edition) [Kindle-editie] beoordelingen het boek quotes

Under current law, any excise tax collected on rum imported into the United States is transferred to or “covered-over” to the Treasuries of Puerto Rico (PR) and the United States Virgin Islands (USVI). In 2008, PR received over $371 million in revenue and the USVI received almost $100 million. The law does not impose any restrictions on how PR and USVI can use the transferred revenues. Both territories use some portion of the revenue to promote and assist the rum industry.The cover-over provisions for rum extend as far back as 1917 for PR and 1954 for USVI. Recently, the United States Virgin Islands has dedicated a larger share of current and future covered-over revenue to help finance public and private infrastructure that would directly benefit the rum industry.In the 111th Congress, legislation has been introduced to expand federal control over the use of covered-over revenue. Passage of H.R. 2122 would result in severe limits on Puerto Rico’s and the USVI’s ability to finance economic development projects with this revenue source. The legislation is likely in response to the recent economic development initiatives in the USVI financed in part by rum cover-over revenue.This report provides a history and analysis of the rum cover-over program and current legislative efforts to modify the program. The congressional debate on this legislation could also lead to debate on the broader issue of the cover-over program more generally. This report will be updated as legislative events warrant.