Puerto Rico is deeply in debt, and asking the US Tax payer to bail us out.. but we have this IRS tax gimmick that allows CFC's to do business in Puerto Rico and not pay US taxes.
Come on !!.... are the US taxpayers stupid!!! Or is it a well kept secret????
Does it make any sense to anyone that Microsoft has a 170 employee company in Puerto Rico and receives 2,5 Million dollars in tax benefits per employee, per year? And.. does it make any sense that millionaires can move to Puerto Rico and take advantage of Gov Fortuno's Laws 20 - 22 and not have to pay taxes to the IRS (US) or to Puerto Rico?
The article below does not even mention the (Controlled Foreign Corporations) CFC's, as winners who receive billions of tax benefits by operating their "business" from Puerto Rico and keeping Puerto Rico coded in the IRS as a "Foreign Country" for their benefit. The United States has failed its US Citizens in Puerto Rico to benefit the .
The US has not kept its promise, pledged in the Treaty of Paris with Spain, to treat us as they do their own US citizens. Instead, we are a failed, bankrupt territory of US citizens, disenfranchised, and without self government.
For all practical purposes, we are a "foreign" country, a tax haven offshore paradise for the millionaires, and are governed by the CFC's Regime to benefit their despicable greed to amass extreme wealth without paying taxes and benefit an elite few.
Here Are the Winners and Losers of Puerto Rico's Debt Crisis
by Michelle Kaske
May 19, 2015
Puerto Rico and its agencies have amassed $72 billion of debt as the junk-rated island's economy has shrunk every year but one since 2006. Investors bought the securities, which are tax-exempt in all U.S. states, for their relatively higher yields. There are fewer residents to help repay the obligations: The island's population has declined 7 percent in the past decade as residents moved to the U.S. mainland.
That combination of rising debt, sluggish economy, and falling population has pushed yields on Puerto Rico debt above those of Greece. The securities have been trading at distressed levels for nearly two years as investors doubted the commonwealth's ability to repay its debt on time and in full. Puerto Rico warned in its latest quarterly filing that it may place a moratorium on debt payments in fiscal year 2016 if the government can't cut spending or raise enough revenue.
The island's state-run power utility, Puerto Rico Electric Power Authority (Prepa) is currently negotiating with creditors to potentially reduce its nearly $9 billion debt load. Such a restructuring would be the largest ever in the $3.6 trillion municipal bond market.
Winners: Law Firms
Winners: Hedge Funds and Distressed-Debt Buyers
Winners: the Consultants
Losers: Longtime Bondholders
Losers: The Monoline Bond Insurers
Losers: The People of Puerto Rico
(I add as Losers: The US Taxpayer)