The AP reports the Governor of Puerto Rico, Luis Fortuño, announced on Tuesday his outline to cut more than 30,000 government positions and introduce new taxes. “The government is too big and spends too much,” Fortuño said. As part of the plan, banks, insurance companies, corporations, and those making over $100,000 will have taxes increased by 5%.
The island is in its third year of recession and has a $3.2 billion budget deficit. Though it is set to receive $5 billion from President Obama’s $787 billion stimulus package, the Republican governor pointed out that these are the worst times in decades. “We all must confront the reality of a bankrupt government and work together to return progress, opportunity and your future to you. The government may be bankrupt, but Puerto Rico is not.”