Press Releases
Statement from Rep. Pascrell regarding PROMESA
Washington, DC,
June 10, 2016
Tags:
Economy
Statement from Rep. Pascrell regarding the passage of the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA) by the House Thursday. After careful consideration and review, I have decided to support H.R. 5278, the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA). While I remain concerned about some of the provisions included in the bill, and I am disappointed about others that are not included, the situation in Puerto Rico is too dire to sit back and do nothing. Most importantly, this bill will allow Puerto Rico to restructure 100 percent of its debts, saving them billions each year in debt payments that can be reinvested in the island and its people. Furthermore, H.R. 5278 will prevent predatory hedge funds from litigating their way to huge payments at Puerto Rico’s expense. All creditors will be faced with a reasonable debt restructuring and the island’s pension system must be protected. Our fellow American citizens on the island have suffered for too long, and I cannot in good conscience ignore their plight, wishing for a more perfect deal. The Obama Administration and Democrats in the House negotiated with Republican leadership in Congress to get the most they could in the deal we have before us today. During these negotiations, Democrats were able to modify or remove some of the more egregious provisions of the bill, including transferring the Vieques National Wildlife Refuge and prioritizing certain creditors over pensioners. I continue to have reservations about provisions of the bill that extend the subminimum wage to workers under 25, and delay the U.S. Department of Labor’s Overtime Rule for Puerto Rican workers. I am also concerned that the oversight board could have undue authority over the Puerto Rican citizens and their right to self-government. We also need to take a step back and understand how we got here. Puerto Rico is in its current predicament for a number of reasons, but we cannot ignore that a major reason is inherent unfairness in federal support for the island in Medicare, Medicaid, and tax provisions compared to the mainland. I am extremely disappointed that this bill does not provide the parity Puerto Rico deserves or the economic development it so desperately needs. For example, my bill, the Tax Equity and Prosperity for Puerto Rican Families Act (H.R. 4213), would extend the Earned Income Tax Credit to Puerto Rican citizens, who pay payroll taxes without the same incentives and offsets afforded to citizens on the mainland. This is not my ideal bill by any stretch of the imagination. But we live in a democracy, and we have to be willing to compromise to get the best possible deal under the present circumstances. I believe we have done that. While the bill is not perfect, we can’t let perfect be the enemy of the good. Puerto Rico is in desperate need of restructuring authority, and I cannot stand by while the island sinks and its people suffer. |