The glory and genius of our nation — one, under God — is that
our Founding Fathers devised just the right formula for a system of
government that would allow the newly born society to attain some
of the greatest advances not just in individual freedoms,
democracy, and human rights, but in economic prosperity, scientific
and technical innovation, and progress for itself and for all
mankind.
From Puerto Rico, where Old Glory flies high atop La Fortaleza,
the oldest working Executive Mansion in the entire Western
Hemisphere, both the value and fragility of the fundamental
freedoms that sustain the American experiment are plain to see. Not
far from our shores, two well-known despots continue to espouse and
attempt to export ruinous ideologies that stifle individual
freedoms and enslave people to the state. Other neighbors, although
democratic, have economic systems that thwart their citizens’
ability to reach their full potential.
This is the country that the world still turns to and emulates
as the greatest force for freedom, progress, and prosperity in
history. But the truth is that not all threats to the political and
economic freedoms that undergird the United States are external. It
is from within, in fact, that we face the threat of government
encroachment and irresponsible fiscal policies that undermine the
very foundations of our nation’s success and imperil the future of
the rising generations of the 21st century.
At the state and territorial level, many of my fellow
like-minded governors are striving to do everything within our
power to stem the tide of red ink. When I took the oath of office
in January 2009, our administration inherited a budget deficit of
$3.3 billion, the highest deficit, proportionally speaking, in the
country. Following the better part of a decade of reckless spending
and bloated government, Puerto Rico’s credit teetered on the brink
of being downgraded on Wall Street to junk status.
I went to work to fulfill our voters’ mandate to restore fiscal
responsibility and align public policy with proven pro-growth
strategies that would help Puerto Rico reach its full potential for
economic growth and a better quality of life for all our citizens.
Now just past the midway mark of my current term in office, I am
pleased to report that my constituents are beginning to reap the
benefits of the tough decisions we made and the wise course of
action that we have relentlessly pursued.
In just two years, we have shrunk our budget gap from 44 percent
to 11 percent — now, 31 states of the Union have higher deficits,
proportionally, than Puerto Rico — and we will achieve a balanced
budget in fiscal year 2013. Last year, Puerto Rico received the
highest credit rating increase of any other state or territory in
the nation, as well as its first positive credit outlook in nearly
three decades.
Most importantly, as a result of the tough but necessary action
we took to right our course, we’re now in a position to truly
unleash our people’s freedom to prosper, by implementing the
biggest tax cuts in Puerto Rico’s history. Thanks to these tax
cuts, the tax burden on individuals will be reduced by an average
of 50 percent, and the tax burden on businesses by 30 percent.
The benefits of tax reform are central to a new era of economic
vitality on the island, and they go hand in hand with the
implementation of state-of-the-art public-private partnership
investment legislation, reform of permitting, and energy reform,
among other pro-growth initiatives.
Our experience in Puerto Rico, as well as those of other states
and territories that are also grappling with equally formidable
fiscal panoramas, can provide a lesson for Washington. As we rise
together to meet the perilous challenges of fiscal irresponsibility
and government encroach-ment that face us as a nation, we all have
a responsibility to lead and keep the United States the number-one
driver of peace, progress, and prosperity for generations to
come.
