August 1, 2016
|US Flag Waves Over PR|
However, a recent study by Brooke Harrington, "Why Tax Havens Are Political and Economic Disasters describes the dire situation in areas that are used as offshore Tax Shelters. That is the present situation of the United States Territory of Puerto Rico; an unbearable economic situation for it's 3.5 million US Citizens, which we have been calling out against in Washington and Puerto Rico for over 35 years." Our severe economic situation has now become known word wide.
|Beach at Cabo Rojo, PR|
How did this happen? It began many decades ago, when Puerto Rico was placed under IRS Code 933. It was supposedly meant to be to help Puerto Rico's economy by allowing its' US citizens to not have to pay Federal taxes, until the economy came to par with that of the other 50 states.
Instead it has degenerated into an abusive outrageous IRS code which has given way to other IRS codes and local laws, such as Section 936, all IRS tax evasion schemes, where US corporations and individuals from out of Puerto Rico can have a minimal presence in Puerto Rico, (some "claim" residency) and not have to pay taxes on their immense fortunes to the State or to the Federal Government. Local millionaires have also found a way to benefit from these laws. IT IS A RIP OFF TO THE US TAXPAYER AND TO THE US CITIZENS OF PUERTO RICO WHO DO HAVE TO PAY VERY HIGH TAXES!
Like Ms. Harrington describes what happens in other offshore tax haven areas, Puerto Rico and the US Citizens in Puerto Rico have only become poorer and poorer, resulting in the present bankrupt crisis situation. Crime, unemployment and infrastructure decadence has set in. Many areas of Puerto Rico are abandoned and look like a battle zone.
The island is in a serious economic crisis due to political corruption, fiscal mismanagement, and tax evasion. However, powerful economic forces, local subordinates, brokers, banks, expensive K St. Lobbyists, and corrupt politicians defend this tax evasion scheme with all their might and joined forces against PROMESA. The PROMESA bill passed by House & Senate and was signed by President Obama. It is so easy to see why these hawks fought and will continue to fight against it. (PROMESA is now a Law to create Puerto Rico's Fiscal Control Board to help Puerto Rico fix its' economic problems and investigate the reasons of why it happened.)
The PR Fiscal Board will probably be interested to find that one US Company which uses Puerto Rico as an offshore tax shelter has 170 employees, and gets IRS tax benefits of $22.5,000,000.00/yr/employee. (Many of the employees are Part Time thus qualifying for Federal aid such as food coupons, etc. which is another burden to the US Taxpayer)
Ms Harrington also mentions the PANAMA papers. Rumors in Puerto Rico are that the Panama connection is also linked to the island IRS tax exemption status. This has only hurt the taxpaying US citizens of Puerto Rico and the overall economy of the territory.
Harrington's research describes the various examples of the quality of life and economic conditions of areas which become Tax Havens such as Puerto Rico.
The "Puerto Rico/USA Tax Evasion Establishment", has worked actively, behind the scenes for over 50 yrs, in Washington and in Puerto Rico, to prevent the US citizens from Puerto Rico from attaining all the rights of US citizenship, so they can continue to evade US taxes.
This also affects the US tax payers who carry the load of sustaining the Nation while corporations and the rich hide their money in tax havens, such as Puerto Rico. This has destroyed our Tropical Paradise, and eventually, this economic collapse will hurt the whole United States.
ABOUT Miriam J. Ramirez MD