WEBVTT 00:01.966 --> 00:04.533 align:left position:10%,start line:77% size:80% JUDY WOODRUFF: One aspect of this tax bill that hasn't gotten as much attention, a couple 00:04.533 --> 00:09.333 align:left position:10%,start line:77% size:80% of provisions that may hit the economy of Puerto Rico, even as the island struggles 00:09.333 --> 00:12.333 align:left position:20%,start line:83% size:70% to recover fully from Hurricane Maria. 00:12.333 --> 00:14.466 align:left position:20%,start line:83% size:70% Jeffrey Brown zeros in on those issues. 00:14.466 --> 00:18.733 align:left position:10%,start line:77% size:80% JEFFREY BROWN: That's because the bill treats Puerto Rico in some ways as a foreign entity, 00:18.733 --> 00:23.733 align:left position:10%,start line:77% size:80% not a territory of the U.S. Specifically, it includes a higher tax rate on corporate 00:24.600 --> 00:26.700 align:left position:10%,start line:89% size:80% from intellectual property. 00:26.700 --> 00:30.866 align:left position:10%,start line:77% size:80% Local officials warn that could drive out drugmakers and other manufacturers. 00:30.866 --> 00:35.166 align:left position:10%,start line:77% size:80% It comes as a third of Puerto Rico is still without power and in a week when the government 00:35.166 --> 00:40.166 align:left position:10%,start line:77% size:80% announced it will review all deaths in the aftermath of the hurricane, that after several 00:42.166 --> 00:45.266 align:left position:10%,start line:77% size:80% independent investigations found the number of deaths was much higher than officially 00:45.266 --> 00:47.266 align:left position:30%,start line:89% size:60% reported. 00:47.266 --> 00:51.333 align:left position:10%,start line:77% size:80% Carlos Mercader is a representative on the mainland for governor Ricardo Rossello. 00:51.966 --> 00:52.666 align:left position:30%,start line:89% size:60% He joins me now. 00:52.666 --> 00:54.200 align:left position:30%,start line:89% size:60% Welcome to you. 00:54.200 --> 00:55.400 align:left position:10%,start line:83% size:80% CARLOS MERCADER, Spokesman for Puerto Rico Governor: Thank you. 00:55.400 --> 00:56.666 align:left position:20%,start line:83% size:70% JEFFREY BROWN: So, start with the tax bill. 00:56.666 --> 00:57.500 align:left position:20%,start line:83% size:70% Why do you think it would be such a blow? 00:57.500 --> 00:59.000 align:left position:20%,start line:89% size:70% What are implications? 00:59.000 --> 01:01.966 align:left position:10%,start line:83% size:80% CARLOS MERCADER: Yes, Puerto Rico, it's a U.S. jurisdiction. 01:01.966 --> 01:06.966 align:left position:10%,start line:77% size:80% And we were asking Congress to treat Puerto Rico under the current tax bill as a U.S. 01:07.766 --> 01:10.233 align:left position:30%,start line:89% size:60% jurisdiction. 01:10.233 --> 01:13.766 align:left position:10%,start line:71% size:80% The fact is that, basically, they are penalizing Puerto Rico with the taxes that they are imposing 01:14.966 --> 01:18.300 align:left position:20%,start line:83% size:70% on foreign corporations or foreign territories. 01:18.300 --> 01:23.300 align:left position:20%,start line:77% size:70% What we were saying is that every job in Puerto Rico is a U.S. job. 01:24.033 --> 01:26.133 align:left position:20%,start line:89% size:70% It's an American job. 01:26.133 --> 01:29.600 align:left position:10%,start line:77% size:80% And if the tax bill wanted to protect American jobs, they would have had included Puerto 01:31.566 --> 01:36.533 align:left position:10%,start line:77% size:80% Rico as a U.S. jurisdiction, and they wouldn't be penalizing those jobs in the island with 01:37.400 --> 01:39.400 align:left position:10%,start line:89% size:80% the taxes that they just passed. 01:39.400 --> 01:43.300 align:left position:10%,start line:77% size:80% JEFFREY BROWN: So far, we haven't seen any companies threaten to leave. 01:43.300 --> 01:45.866 align:left position:10%,start line:77% size:80% CARLOS MERCADER: Well, everyone is saying that they are going to be looking at how is 01:45.866 --> 01:50.866 align:left position:10%,start line:77% size:80% the implementation of this tax bill, and, obviously, remember, we're going to be competing 01:51.766 --> 01:53.000 align:left position:10%,start line:89% size:80% against foreign jurisdictions. 01:53.000 --> 01:55.133 align:left position:20%,start line:83% size:70% We're not competing within the U.S. 01:55.133 --> 02:00.166 align:left position:20%,start line:71% size:70% We're competing against other foreign countries which basically don't have the same set of 02:02.133 --> 02:04.700 align:left position:10%,start line:77% size:80% rules, the seam set of laws, the same set of regulations that Puerto Rico has. 02:04.700 --> 02:08.400 align:left position:10%,start line:77% size:80% JEFFREY BROWN: But have any companies told you quietly that they will leave? 02:08.400 --> 02:10.400 align:left position:20%,start line:89% size:70% They may change -- yes? 02:10.400 --> 02:12.466 align:left position:10%,start line:77% size:80% CARLOS MERCADER: They mentioned that they're analyzing their situation. 02:12.466 --> 02:16.933 align:left position:10%,start line:77% size:80% JEFFREY BROWN: Separately, there is this disaster aid idea going through Congress right now, 02:18.933 --> 02:23.500 align:left position:10%,start line:77% size:80% a lot of money for all the recent disasters, with some of it earmarked for Puerto Rico, 02:24.733 --> 02:27.400 align:left position:20%,start line:83% size:70% but not nearly as much as you have asked for. 02:27.400 --> 02:28.400 align:left position:20%,start line:89% size:70% CARLOS MERCADER: No. 02:28.400 --> 02:30.433 align:left position:30%,start line:89% size:60% Well, yes. 02:30.433 --> 02:34.400 align:left position:10%,start line:77% size:80% And while we appreciate that Congress right now, it has basically raised the amount of 02:36.366 --> 02:39.866 align:left position:10%,start line:77% size:80% moneys that are going to be included in that aid package, we're still saying that we need 02:39.866 --> 02:43.333 align:left position:20%,start line:83% size:70% to tackle the Medicaid cliff that we're facing. 02:43.333 --> 02:48.333 align:left position:10%,start line:71% size:80% Basically, it's that Puerto Rico, after February of 2018, will have no federal money to run 02:50.133 --> 02:53.000 align:left position:20%,start line:89% size:70% its Medicaid program. 02:53.000 --> 02:58.000 align:left position:10%,start line:77% size:80% And we need to basically find the moneys in this supplemental aid package to cover that 03:00.566 --> 03:02.833 align:left position:10%,start line:83% size:80% cliff that we are going to be facing in February. 03:02.833 --> 03:05.000 align:left position:10%,start line:77% size:80% JEFFREY BROWN: But those were the kind of problems that were pre-hurricane. 03:05.000 --> 03:07.400 align:left position:40%,start line:89% size:50% Right? 03:07.400 --> 03:11.000 align:left position:10%,start line:71% size:80% CARLOS MERCADER: Yes, but obviously those are heightened by the situation of the hurricane. 03:13.000 --> 03:16.300 align:left position:10%,start line:77% size:80% And what we're asking is the same thing that happened in New Orleans after Katrina, in 03:16.300 --> 03:21.300 align:left position:10%,start line:77% size:80% which the federal government covered for 24 months the federal and the state share on 03:22.033 --> 03:24.066 align:left position:20%,start line:89% size:70% the Medicaid front. 03:24.066 --> 03:25.433 align:left position:10%,start line:77% size:80% JEFFREY BROWN: Let me move to the question of the death count, because that just came 03:25.433 --> 03:27.466 align:left position:30%,start line:89% size:60% up this week. 03:27.466 --> 03:30.233 align:left position:10%,start line:77% size:80% The governor, your governor acknowledged this week that the death toll may be higher than 03:30.233 --> 03:32.766 align:left position:10%,start line:89% size:80% it has been acknowledged so far. 03:32.766 --> 03:36.466 align:left position:10%,start line:83% size:80% This was after he kind of stuck to that number for a long time. 03:36.466 --> 03:40.833 align:left position:10%,start line:77% size:80% What has changed, and why did the government stick to the number for so long? 03:40.833 --> 03:45.833 align:left position:10%,start line:71% size:80% CARLOS MERCADER: Well, the government basically has a process of analyzing, and very fine, 03:48.666 --> 03:53.666 align:left position:10%,start line:77% size:80% that all of the deaths that happened after a storm directly are indirectly related to 03:55.133 --> 03:57.200 align:left position:30%,start line:89% size:60% the storm. 03:57.200 --> 04:01.400 align:left position:10%,start line:77% size:80% So, in a process of seeking transparency, what he has basically asked is that -- one 04:05.400 --> 04:10.333 align:left position:10%,start line:77% size:80% thing, that they investigate each and every death that occurred after the storm. 04:10.333 --> 04:15.333 align:left position:10%,start line:77% size:80% And then he commissioned an expert panel, so that they go back and see that process 04:17.266 --> 04:21.100 align:left position:10%,start line:77% size:80% that the government had when the storm happened to make sure that that's the best process 04:23.100 --> 04:27.733 align:left position:10%,start line:77% size:80% to really identify the real cause of death of a person that died after the storm. 04:28.600 --> 04:30.566 align:left position:10%,start line:89% size:80% And this is very important. 04:30.566 --> 04:34.066 align:left position:20%,start line:83% size:70% Life, it's much more important than numbers. 04:34.066 --> 04:39.066 align:left position:10%,start line:77% size:80% So, here, every death that happened after the storm needs to have the real information, 04:40.566 --> 04:42.633 align:left position:20%,start line:89% size:70% what really happened. 04:42.633 --> 04:46.100 align:left position:20%,start line:71% size:70% JEFFREY BROWN: But, very briefly, I mean, those numbers could be off by hundreds, right? 04:46.100 --> 04:51.100 align:left position:10%,start line:77% size:80% Will be there -- do you have the efficiency, the funding for a real count now? 04:51.966 --> 04:54.000 align:left position:10%,start line:89% size:80% CARLOS MERCADER: Yes, yes. 04:54.000 --> 04:58.266 align:left position:10%,start line:77% size:80% And, actually, the process has always been open, meaning that the governor has always 05:00.266 --> 05:04.500 align:left position:10%,start line:77% size:80% recognized that, since this was such a big catastrophe, obviously, the number of deaths 05:05.900 --> 05:07.900 align:left position:10%,start line:83% size:80% could be high, and higher than the number that we have. 05:07.900 --> 05:11.233 align:left position:10%,start line:77% size:80% The thing is that, with the numbers that are out there right now, that's why he has asked 05:11.233 --> 05:15.866 align:left position:10%,start line:77% size:80% for each and every death to be investigated - - re-investigated again, calling in doctors, 05:15.866 --> 05:20.866 align:left position:10%,start line:77% size:80% and just making sure that really the cause of death was really a natural cause of death 05:22.800 --> 05:26.433 align:left position:10%,start line:77% size:80% or related to the storm, and then, obviously, calling in these experts, so that they can 05:27.533 --> 05:29.033 align:left position:20%,start line:83% size:70% chip into that government process. 05:29.033 --> 05:29.966 align:left position:10%,start line:83% size:80% JEFFREY BROWN: All right, Carlos Mercader, thank you very much. 05:29.966 --> 05:30.100 align:left position:10%,start line:89% size:80% CARLOS MERCADER: Thank you.