Residents pay no federal income tax or capital-gains tax in Puerto Rico and that's something that's enticing Americans.
Residents pay no federal income tax or capital-gains tax in Puerto Rico -- and that's something that's enticing Americans.
Greetings from San Juan: PR Mayor Romero backs de Blasio for Congress Want to pay no federal income tax? Move to Puerto Rico. Really. If you move to the island, you can legally pay none.
Theres also no capital-gains tax. You just have to give 4% of your income to Puerto Rico.
That tax break was started by a Puerto Rican politician whod watched years of high taxes fail to improve life on the island. He decided to try something different.
Obviously, its a popular idea, when people learn about it. Tens of thousands have applied for the exemption, and applications tripled last year.
YouTube star Logan Paul moved his show from California to Puerto Rico to take advantage of the tax deal.
I did it for the obvious benefit of being able to keep most of what I own, investor Peter Schiff says. Its too bad that Puerto Rico didnt do this decades ago. They wouldnt be in the economic trouble they are today.
A lot of people are moving down here, says social worker Melissa DaSilva in my newest video. Two years ago, she ran a therapy business in Rhode Island. Now she runs it remotely from Puerto Rico. Im saving 25% of my income.
She loves her new life.
I wake up, and I have the ocean in front of me. I go out my back door, the rainforest is off in the distance. Its just a magical place to live.
SEE ALSO A near-irresistible combo of legal and financial incentives, great weather and a critical mass of cryptocurrency gurus has been transforming Puerto Rico. How Puerto Rico became a tax haven for high-flying crypto millionaires Given that this tax break is so big, its surprising that most Americans havent heard about it.
People just dont really talk about it much, says DaSilva. Theres this fear that people from the state side are going to come down and take over everything.
Knowing Puerto Ricos history, she says, that fear is justified. The Spaniards came and decided its going to be their island and decimated all the native people. Then the United States comes down, and they decide its going to be their island.
But these new Puerto Ricans arent exactly conquerors.
Theyre a mix of entrepreneurs, tax haters, crypto millionaires and ordinary people who just want to keep more of their money. By bringing wealth and skills to Puerto Rico, they create opportunity for Puerto Ricans. One report says they have already created 40,000 new jobs.
SEE ALSO Child star and candidate for U.S. President, Brock Pierce in Harlem. Cross eyed: Bitcoin billionaire Brock Pierce buys Puerto Rican monastery for $5M If you dont pay taxes, arent you hurting Puerto Rico? I ask DaSilva.
I do pay taxes, DaSilva replies. I provide other things as well. She sells digital art and donates part of her sales to local nonprofits.
Billionaire Brock Pierce moved to Puerto Rico and now helps run the charity Toys for Tots. He also is renovating a hotel that was abandoned after Hurricane Maria. Thats expected to create 300 jobs. Others are building hurricane-resistant farms, tech companies and schools.
But some people always see such investment as a problem. Rep. Alexandria Ocasio-Cortez (D, Bronx/Queens) calls the tax incentive horrifying.
Its an example of the continued colonization of the people of Puerto Rico, she complains. We are essentially importing a ruling class.
Puerto Rico taxes A mix of entrepreneurs, tax haters, crypto millionaires and ordinary people who want to keep more of their money are flocking to Puerto Rico. Christopher Sadowski She seems to think that if someone makes money, others must lose, as if there are only winners or losers. This is zero-sum thinking.
Its true in politics. But its not true in most of life. Wherever markets are free, new wealth gets created. Then almost everyone wins.
DaSilva has an answer to Ocasio-Cortezs zero-sum thinking: All ships rise with a tide, she says. Lets all grow with this.
What do you think? Post a comment. Puerto Rico has tried big government, strict regulations, high taxes on businesses, handouts to favored groups, heavy borrowing and declaring bankruptcy.
I bet tax breaks work better.