Quote: (06-13-2017 12:32 AM)frozen-ace Wrote:
PR has special tax status when it comes to federal taxes. They pay into social security and Medicare, but do not pay federal income tax. I assume this would change if they became a state...I'm surprised anyone would want to vote for that.
Having looked into this in depth, I think I can give you an answer. The reality is that most of PR's inhabitants would not be paying Federal income taxes if they joined as a state.
The Island has only 40% labour participation rate. That is not a typo. 3/5 people are not working in PR. Of those who do work, some will no doubt be below the Federal income threshold.
Hence you have a perverse incentive where more than 60% of the population can foist Federal income taxes on the actual working people in PR by voting to join as a state.
Another shocking statistic is that of a civilian labour force of around 1 million, over a quarter (over 250,000) work for either the US Federal or PR Territorial Government. Government is the largest employer in PR by a wide margin.
Attempts to collect higher local taxes have been entirely ineffective.
The island has been bleeding young people for years. They are recognized as US citizens and therefore have mobility rights under the US Constitution. I'd move the hell out of there if I had the opportunity to as well.
Congress would be stark raving mad to allow PR in as a State. The first thing PR would do is bring proceedings as an insolvent State under the US Bankruptcy Code. That is a completely perverse reason for wanting to join a country. Can't they come up with something better than the need to shed debt?
The political leanings of the Island's population, which include around 2 million plus of people in voting age, would have significant effects on the House, Senate and the electoral college. Not to beat up on Hispanics, it is simply a fact that Americans of Hispanic descent vote overwhelmingly in favour of big government and Democrats (ever notice that when Democrats don't win an election they want to: 1) change all the rules; and 2) attack the legitimacy of the victors?).
I'd advocate all my Southern neighbours to write their Congress Rep. and Senators to urge them not to open this trap door.
I'm just a Canadian with an outside opinion, of course, but that may make me a tad more objective.