Thursday, February 10, 2011

Puerto Rico's offshore tax benefits known also as CFC's.

Feb 2011

The offshore tax shelters multinationals (also known as CFC's) are the real colonial powers behind all governments in Puerto Rico. They benefit by Puerto Rico remaining a territory of the United States and not as a State of the Union. 

With the help of local political leaders, (Including statehood leaders with hefty campaign war chests) and others, the CFC's representatives have obtained, through expensive, extensive, aggressive lobbying, an IRS Code that defines Puerto Rico,USA as  a foreign country for the  purpose of using it as a tax shelter. Official studies have shown that these tax benefits to CFC'c have not benefited Puerto Rico's economy. Our unemployment and per-capita is still at poverty level.

So for the (US)IRS, the 4.2 million US Citizens living in Puerto Rico are living in a foreign country.To protect this US "offshore" tax haven, the CFC's have strong vested interests in the results of our electoral processes. That is my main problem with the CFC's. 

My message to the CFC's is: "I will not let go until you take me seriously. Let's sit down and talk. I will suggest a proposal you cannot refuse. No threats, but just so you know, with God's help, I am healthy and ready for another 20 years of this battle to resolve Puerto Rico's status and you are the biggest part of the problem.
Feb 9, 2011
Companies that pay a lower tax rate than you
The United States has the highest corporate tax rate in the industrialized world but few companies pay the full rate. Some pay barely any taxes on billions in income. 
Tricks of the trade
Companies that use offshore headquarters to lower their tax bills are a top target for tax reform advocates, according to Anne Mathias, MF Global's director of research who did the analysis. For example, Transocean (RIG), the oil drilling company involved in the Gulf of Mexico oil spill last year, paid only 14% of its income in taxes.