Do you want to avoid federal income taxes?
Puerto Rico:
Really. Legally, there is no tax on the move to an island. You don’t have to pay capital gains taxes.
Puerto Rico will only require 4% of your annual income.
A Puerto Rican politician started the tax cut after seeing years of stagnant taxes on Puerto Rico. He wanted to do something new.
It is obvious it is popular when it becomes known.
Tens of thousands applied for exemption last year, with applications more than tripling.
Logan Paul, YouTube star and tax expert has moved from California to Puerto Rico in order to benefit from the tax agreement.
Investor Peter Schiff says, “I did it for the obvious benefit of being able to keep most of what I own … Puerto Rico should have done this decades ago. They wouldn’t be in the economic trouble they are today.”
“A lot of people are moving down here,” says social worker Melissa DaSilva in my The latest video. She started a Rhode Island therapy company two years ago. It is now remotely managed by her from Puerto Rico. “I’m saving 25% of my income.”
She loves her new lifestyle.
“I wake up, and I have the ocean in front of me. The rainforest can be seen in the distance as I walk out of my backdoor. It’s just a magical place to live.”
It’s amazing that so many Americans don’t know about this huge tax relief.
“People just don’t really talk about it much,” says DaSilva. “There’s this fear that people from the state side are going to come down and take over everything.”
According to her, this is a justified fear given Puerto Rico’s history. “The Spaniards came and decided it’s going to be their island and decimated all the native people. Then the United States comes down, and they decide it’s going to be their island.”
However, these Puerto Ricans have not yet become conquerors.
These people are a mixture of tax-haters, entrepreneurs and crypto millionaires. They also want more money. They bring wealth and skill to Puerto Rico. They have created around 40,000 new jobs, according to one report.
“If you don’t pay taxes, aren’t 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.
Brock Pierce, a billionaire who moved to Puerto Rico in order to run Toys for Tots. Also, he is currently renovating a building that was destroyed by Hurricane Maria. This is expected to result in 300 new jobs. Other companies are also building schools, farms and tech businesses that can withstand hurricanes.
Some people see this investment as a problem. Rep. Alexandria Ocasio-Cortez, D-N.Y., calls the tax incentive “horrifying.”
“It’s an example of the continued colonization of the people of Puerto Rico,” she complains. “We are essentially importing a ruling class.”
It seems that she believes that money can only be earned by those who make it. It is zero-sum thinking.
In politics, it’s also true. It’s false in politics. New wealth is created wherever markets are open. Then almost everyone wins.
DaSilva offers an alternative to OcasioCortez’s zero sum thinking.
“All ships rise with a tide,” she says. “Let’s all grow with this.”
Puerto Rico’s attempts at big government, tight regulations, higher taxes for businesses, handouts and favored group support, borrowing heavy, bankruptcy filings, have failed.
Tax breaks are better, I think.
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