US territories defend bailout package's rum bill

SAN JUAN (AP): A tax break for rum produced in Puerto Rico and the U.S. Virgin Islands may trigger a hangover for proponents of Congress' huge bailout bill after the U.S. Senate tacked on tax reductions for the islands' liquor. A group of House Republicans in Washington who have opposed the US$700 billion bailout indicated Thursday they would support the bill if it is slashed to US$250 billion and if several tax breaks added by the Senate _ including the one for rum _ are removed. But authorities in Puerto Rico and the U.S. Virgin Islands pointed out Thursday that the bill to cover federal taxes on rum from the tropical territories dates back to a 1917 act and is typically renewed with little fanfare. ``People who didn't notice it previous years, well, they definitely noticed it now due to the financial mess,'' said Jaime... [read full story]