Lib Isn't Going To Like This...

[liberty]

that?

And more, I think you count on it.

[Big RR]

Since Spain still recognizes all Puerto Ricans as Spanish citizens (and not U.S.), shouldn't they go halfsies?

Not entirely true Meade--persons born in Puerto Rico obtain Puerto Rican and American citizenship at birth; Spain will permit Puerto Ricans to become Spanish citizens, but only if they emigrate to Spain and live there continuously for at least two years.

I'm curious, because I don't think the circumstances are much different in other U.S. territories, what is it about Puerto Rico that makes you feel entitled to single it out for such a ridiculous ultimatum. And

So far as I know, Puerto Rico is the only US territory where the residents do not pay any federal income tax (even though they are US citizens), ; I do know residents of the US Virgin Islands pay US federal income tax, and think the same is true of Guam and American Samoa (and US expats working in foreign countries still pay US federal income tax)This places them in a very different situation, albeit of the US government's making. But face it, I believe most Americans would vote to make their state a commonwealth if it meant freedom from federal income taxes.

ETA: One thing re the USVI, I did a little extra research and the system has changed a little; rather than pay taxes to the IRS, the system was changed (I think in the late 90s/early 2000s) to permit the USVI taxing authority to collect those taxes, where the tax code mirrored the IRS code in most respects. As in most of the territories, the taxes are used to fund the territorial operations, and the US government has a large hand in this, but it eliminates the transfer from the USVI to the US and back to the USVI. There are some allowances for bona fide residents that US migrants do not get (at least immediately), but most pay much the same as they would pay in the US.

[MajGenl.Meade]

Since Spain still recognizes all Puerto Ricans as Spanish citizens (and not U.S.), shouldn't they go halfsies?

Not entirely true Meade--persons born in Puerto Rico obtain Puerto Rican and American citizenship at birth; Spain will permit Puerto Ricans to become Spanish citizens, but only if they emigrate to Spain and live there continuously for at least two years.

Oh, buzzkill!

[Scooter]

So far as I know, Puerto Rico is the only US territory where the residents do not pay any federal income tax (even though they are US citizens), ; I do know residents of the US Virgin Islands pay US federal income tax, and think the same is true of Guam and American Samoa (and US expats working in foreign countries still pay US federal income tax)This places them in a very different situation, albeit of the US government's making.

From what I read here, it is almost the opposite that seems to be the case. The income qualifying for exemption from federal income tax is defined differently from one territory to another. There may be sound reaons for this, but from my reading, there is no scenario in which income that is exempt from federal tax in Puerto Rico would be subject to federal tax in every other territory. Conversely, there are examples in each of the other territories when income exempt from federal tax in that territory would be subject to federal tax in Puerto Rico. Which means that Puerto Rico actually gets less relief from federal income tax than any other territory.

[kmccune]

Living in a Commonwealth ,doesnt exempt you from paying federal taxes (as a rule,its a lot more stupid archaic laws,in VA anyway )

[MajGenl.Meade]

...bearing in mind that the four states of the Union (KY, PA, VA, MASS) which call themselves "Commonwealths" are not actually Commonwealths at all. The Wiki explanation is good enough:

The term "Commonwealth" does not describe or provide for any specific political status or legal relationship when used by a state. Those that do use it are equal to those that do not. A traditional English term for a political community founded for the common good, it is used symbolically to emphasize that these states have a "government based on the common consent of the people" as opposed to one legitimated through their earlier colonial status that was derived from the British crown.

It refers to the common "weal", or welfare, of the public and is derived from a loose translation of the Latin term res publica (cf. the 17th-century Commonwealth of England).

Besides the four aforementioned states, other states may also, on occasion, use the term "commonwealth" to refer to themselves. Vermont, for instance, uses the term "commonwealth" three times in its constitution, interchangeably with the term "state". Also, while Delaware was primarily referred to as a "State" in its 1776 constitution, the term "Commonwealth" was also used in one article within it.

Two U.S. territories are also designated as commonwealths: Puerto Rico and the Northern Mariana Islands. When used in connection with areas under U.S. sovereignty that are not states, the term broadly describes an area that is self-governing under a constitution of its adoption and whose right of self-government will not be unilaterally withdrawn by the United States Congress

[Big RR]

Scooter--see this:

Topic 901 - Is a Person With Income From Puerto Rico Required to File a U.S. Federal Income Tax Return?

If you are a bona fide resident of Puerto Rico during the entire tax year, you generally are not required to file a U.S. federal income tax return if your only income is from sources within Puerto Rico. However, if you also have income from sources outside of Puerto Rico, including from U.S. sources, you are required to file a U.S. federal income tax return if such amount is above the U.S. filing threshold. Nevertheless, a bona fide resident of Puerto Rico with a U.S. filing obligation, generally will not report Puerto Rican source income on a U.S. income tax return. A tax year for calendar year filers is January 1 to December 31.

If you are a bona fide resident of Puerto Rico and can exclude your Puerto Rican source income on your U.S. income tax return, you must determine your return filing requirement based on the filing thresholds shown in the individual tax return instructions. For more information about how to determine the amount of income that requires filing a U.S. income tax return, refer to Publication 570 and Publication 1321 (PDF).

However, if you are a bona fide resident of Puerto Rico and a U.S. government employee, you must file a U.S. income tax return reporting all income received for performing services for the U.S. government, including services performed in Puerto Rico as a U.S. government employee. If you are a member of the U.S. Armed Forces or a civilian spouse of an active duty member of the U.S. Armed Forces, special income tax filing rules may apply to you. For more information, please refer to Publication 570 and Notice 2012-41.

U.S. citizens and resident aliens who are not bona fide residents of Puerto Rico during the entire tax year are required to report all income from worldwide sources on their U.S. income tax return. However, a U.S. citizen who changes residence from Puerto Rico to the United States, and who was a bona fide resident of Puerto Rico for a period of at least two years before changing residency, can exclude any Puerto Rican source income from his or her U.S. income tax return attributable to the time he or she was still residing in Puerto Rico for part of the year.

Regardless of whether an individual is or is not a bona fide resident of Puerto Rico, the individual may also have an obligation to file a return with the United States reporting self-employment income derived from a trade or business in Puerto Rico and/or elsewhere. Such individuals must file Form 1040-SS (PDF) or Form 1040-PR (PDF) with the United States to report self-employment income and if necessary, pay self-employment tax. For more information on self-employment reporting requirements, see the Form 1040-SS Instructions (PDF) and Form 1040-PR Instructions (PDF).

Bona fide residents of PR do not pay federal income tax on any PR derived income. they do pay PR tax, but see the Forbes article describing the income tax rates:

http://www.forbes.com/sites/robertwood/ ... 6b9f1038e2

If you compare this with the USVI mirror income tax in the USVI (or American Samoa) and you will see a much lower tax liability--the same is true for businesses (Operation Bootstrap wanted to attract businesses to PR). Now, yes, these are not really paying US income tax, but when you consider that the US government has to make up the difference and pay for whatever services are needed beyond what is raised, it is effectively the same.

Again, the deal PR has is the making of the US government for its own ends, but I believe they have the best deal of all the possessions. And with all of that, as well as the infrastructure paid for by the US government (one of the main highways which circles the island is called the military road) has not succeeded in getting industry to move there.

[MajGenl.Meade]