Post by Logan on Jun 26, 2016 23:56:26 GMT -6
Treasury Chief Casts Doubt on Bernier’s Proposals to Stabilize Retirement Systems
Treasury Secretary Juan Zaragoza on Thursday criticized the proposals made by Popular Democratic Party (PDP) gubernatorial candidate David Bernier aimed at “saving” the Commonwealth Retirement System and the Teachers Retirement System.
One of the proposals Bernier presented Wednesday afternoon is to allocate 1 percent of the sales and use tax (IVU by its Spanish acronym) to both retirement systems.
“What Bernier proposes is money that otherwise would go into the general fund ... he proposes to divert it directly to ... the retirement system,” Zaragoza said in a radio interview. “This is like a salaried worker who deposits a check at the bank and asks the bank teller to take out $100 of the check and put it in his savings account so he won’t spend it.”
Zaragoza said it is a technique that is used with other taxes, and to feed the coffers of some government dependencies such as the Puerto Rico Tourism Co. (PRTC) and the Film Corp., for example, but that the funds can’t be supervised properly because they don’t pass through the general fund.
Read more: www.sanjuanweeklypr.com/pdf/Jun-24-16/local.pdf (Page 2 of 7)
Treasury Secretary Juan Zaragoza on Thursday criticized the proposals made by Popular Democratic Party (PDP) gubernatorial candidate David Bernier aimed at “saving” the Commonwealth Retirement System and the Teachers Retirement System.
One of the proposals Bernier presented Wednesday afternoon is to allocate 1 percent of the sales and use tax (IVU by its Spanish acronym) to both retirement systems.
“What Bernier proposes is money that otherwise would go into the general fund ... he proposes to divert it directly to ... the retirement system,” Zaragoza said in a radio interview. “This is like a salaried worker who deposits a check at the bank and asks the bank teller to take out $100 of the check and put it in his savings account so he won’t spend it.”
Zaragoza said it is a technique that is used with other taxes, and to feed the coffers of some government dependencies such as the Puerto Rico Tourism Co. (PRTC) and the Film Corp., for example, but that the funds can’t be supervised properly because they don’t pass through the general fund.
Read more: www.sanjuanweeklypr.com/pdf/Jun-24-16/local.pdf (Page 2 of 7)