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A Sales Tax for Puerto Rico? Opinions of Residents Age 50-Plus

by Katherine Bridges, M.G.S., AARP Knowledge Management, AARP Research, May 2006

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More Puerto Ricans age 50+ strongly support (41%) than strongly oppose (34%) changing the tax system from an income tax-based system to one of both income and sales tax. However, a majority would find it very difficult to pay a 7% sales tax, with 80% or more saying such a tax would especially impact their spending on utilities, food, and transportation.

This AARP telephone survey, conducted in April 2006, of 811 Puerto Rican residents age 50-plus examines opinions on proposed legislation to implement a sales tax of up to 7% on all goods and services. Other findings include:

Of those surveyed...

  • 74% percent say that people should not have to pay a sales tax on non-processed food, such as meats, vegetables, and milk.
  • 82% percent strongly support implementing a plan to reduce government spending as part of any change in taxes.
  • 68% percent say that most residents could not afford a 7% sales tax, with half (50%) saying that most would find a 3% sales tax unaffordable.
  • More respondents strongly or somewhat agree (59%) than strongly or somewhat disagree (37%) that people with low-incomes should be exempt from paying the sales tax.

Consultec, Inc. conducted the interviews for AARP Puerto Rico between April 1 and 21, 2006. For more information on this survey, contact Katherine Bridges of AARP Knowledge Management at 207-899-2094. (7 pages)