Puerto Rico eliminated its work tax credit (WC) in 2014. The credit, which was established in 2006, delivered benefits to 45 percent of all tax filers in 2013 at a total cost $124 million. The maximum credit was $450. This report assess the experience with the WC from 2007 to 2013 and suggests elements for a possible redesign that rewards and stimulates work, reduces hardship, strengthens the tax base, and offsets regressivity in ways that are consistent with current tax reform proposals in Puerto Rico.
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