There are not many issues that congressional Republicans and President Obama see eye to eye on. But when it comes to changing how the tax code treats foreign profits of U.S. corporations, there seems to be room for agreement. For Puerto Rico, the U.S. territory mired in a years-long economic slump, the prospect of corporate tax reform is cause for concern.

For decades, Puerto Rico has relied on its unique place in the U.S. tax code to foster economic development. Puerto Rico is part of the United States, yet for tax purposes most subsidiaries of U.S. firms operating there are organized as controlled foreign corporations. That means they do not pay taxes to the U.S. Treasury as long as earnings remain in Puerto Rico.

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