The news you're not supposed to know...

An Introduction to Austrian Economics: Understand Economics, Understand Everything
The Century of the Self: The Untold History of Controlling the Masses Through the Manipulation of Unconscious Desires
The Disappearing Male: From Virility to Sterility

The Obama Deception: The Mask Comes Off
Operation Gladio: The Hidden History of U.S. Sponsored False Flag Terrorism in EuropeThe New American Century: The Untold History of The Project for the New American Century
Analysis posted Mar 13 2013, 7:02 AM Category: Economy Source: InformationLiberation Print

Puerto Rico To Become Epic Tax Haven For U.S. Citizens?: 'The Idea Is To Turn It Into An Alternative To Singapore'

Chris | InformationLiberation

Puerto Rico is working to become one of the most serious threats to the U.S.'s taxation empire in the entire world, all because U.S. citizens per an old taxation agreement become exempt from U.S. income taxes if they become residents of the territory. Under Puerto Rico's remarkable new tax regime, U.S. citizens who become residents of Puerto Rico can potentially find themselves paying zero capital gains taxes, zero dividend taxes, zero property taxes on their new corporate residence, and a minimal 4% flat business tax on income from their business, the only catch being you have to open your business in the commonwealth and not service Puerto Ricans.

The setup is perfect for hedge fund managers, as well as software businesses and internet entrepreneurs.

The Puerto Rican government, which has slowly been abandoning its socialists ways which led it to bankruptcy, is actively perusing free-market reforms and is reportedly seeking to become "an alternative to Singapore."

Singapore is one of the most free-market tax havens in the world, but citizens of the country are not allowed to have dual citizenship, if they're U.S. citizens living there they must pay U.S. income taxes in full, and if they choose to renounce their U.S. citizenship to live there full-time they get looted like Facebook's Eduardo Saverin by the U.S.'s draconian exit tax. Puerto Rico on the other hand is completely open to U.S. citizens, and actually can exempt them from U.S. income taxes if they become residents. That means there is no need for U.S. citizens looking to lower their tax bill to give up their U.S. citizenship in order to escape the U.S.'s previously inescapable global income tax, nor to avoid the U.S.'s exit tax.

If Facebook was founded in Puerto Rico under the new laws just enacted, they'd have been able to pay almost nothing in taxes rather than having to pay an effective tax rate of 89% as they were forced to in 2012. The implications are huge, that's why the U.S. government is reportedly already looking at "bullying" the nation into backtracking on their plans according to this propaganda piece run on CNN/Fortune, they list a plurality of ways the U.S. could bully the territory into compliance, from threatening to withhold 22$ billion a year in aid, to making the territory the 51st state thereby forcing it to adopt the U.S.'s tax code.

If Puerto Ricans know what's best for them, they should reject the U.S. empire's takeover attempt and go full-bore in the direction of free market capitalism, hitching yourself to a bankrupt empire in decline is not a recipe for success.

Regardless, governments tend to be slow to react, chances are Puerto Rico could become an epic tax haven in the years to come, so pack up your surfboard and get moving!

Here's an excellent interview on Bloomberg from Puerto Rican developer and Caribbean Property Group Cofounder, Barry Breeman discussing this epic development:

See: Remarkable New Puerto Rican Law Exempts U.S. Citizens From Multitude Of Taxes

P.S.: As I discussed in my previous article on this development, I've still yet to determine whether or not you have to pay "local" income taxes under this new setup in Puerto Rico, the local income taxes are as high as 33% on incomes above $60,000 (scheduled to fall to 30% in 2016), some reports imply you do not have to pay them, the government doesn't even mention them in their report though, yet they do mention you're exempt from "federal" income taxes, so that makes me very suspicious. Those paying 39.6% in federal income taxes (plus state taxes up to 13.3%) to the U.S. would benefit from this new tax regime regardless, for those on the margins paying lower rates it's not as clear.

UPDATE: You DO have to pay local income taxes. If you open a business you have to pay yourself a reasonable salary subject to yearly review, though you can also pay yourself in addition through a corporate dividend. Also your business must employ at least three people. The laws appear to benefit those who profit through capital gains the most.
Chris runs the website, you can read more of his writings here. Follow infolib on twitter here.

Latest Economy
- Professor Gruber Strikes Again
- Income Inequality Is a Statistical Artifact
- American Ranking Plummets in Global Index of 'Personal Freedoms'
- Your "Children Will Be Fined" If You Fail To Sign Up For Obamacare: People Are Going To Be In for A Shock
- The End of QE Is Not the End of Bad Policy
- "They Just Want The Money!" - The IRS Can Now Seize Accounts On Suspicion Alone
- Hillary: 'Don't Let Anybody Tell You' That 'Businesses Create Jobs'
- Does Ebola Justify the State?

Comments 1 - 4 of 4 Add Comment Page 1 of 1

Posted: Mar 13 2013, 7:49 AM

80237 I wonder how long it will be until the U.S. invades them in the name of democracy!

Posted: Mar 13 2013, 4:58 PM

20411 Wow.. this is great. I might have to move...

Posted: Mar 13 2013, 8:19 PM

65110 Go Puerto Rico, go!

Posted: Mar 14 2013, 11:59 AM

71184 Has Phil Michaelson been made aware of this?

Add Comment


Verification *
Please Enter the Verification Code Seen Below

Please see our About Page, our Disclaimer, and our Comments Policy.

This site contains copyrighted material the use of which in some cases has not been specifically authorized by the copyright owner. Such material is made available for the purposes of news reporting, education, research, comment, and criticism, which constitutes a 'fair use' of such copyrighted material in accordance with Title 17 U.S.C. Section 107. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner. It is our policy to respond to notices of alleged infringement that comply with the DMCA and other applicable intellectual property laws. It is our policy to remove material from public view that we believe in good faith to be copyrighted material that has been illegally copied and distributed by any of our members or users.

About Us - Disclaimer - Privacy Policy

Advanced Search


Remember Me
Forgot Password?

Cop Stops Fellow Cop From Choking a Handcuffed Man, She Was Then Beaten and Fired - 12/18Thieves Yell "Police" Before Invading Home, Shooting and Robbing Resident - 12/18Tennessee Town Passes Policy Banning Negative Comments About The Town's Government - 12/18A Peace Officer Defies the "Blue Tribe": The Exile of Officer Cariol Horne - 12/19For Punitive Populists, "Comply or Die" IS The "Law" - 12/19Obama Commutes Sentences for Eight Drug Offenders - 12/18Psychotic Vegas Cop Filmed Beating Man For Filming In Viral Video Queitly Hired By Another Dept. - 12/17Ignorance Is No Excuse for Wrongdoing, Unless You're a Cop - 12/17

Rialto, CA Police Made to Wear Cameras, Use of Force Drops by Over Two-ThirdsCop Who Karate Chopped NY Judge In Throat Gets Off Scot-FreeFlorida Cop Smashes Compliant Woman's Face Into Car -- "Maybe Now You Can Understand Simple Instructions"VIDEO: Lapel Cam Reveals A Day In The Life Of A U.S. Police Officer (Tasing, Beating, Breaking & Entering, Stomping On Heads... and Laughing About It)Caught On Tape: Officer Sucker Punches Inmate In Face, Files Report Claiming 'Self Defense'Insult Person On Twitter, Go To JailSWAT Team Brings TV Crew To Film Raid Against Threatening Internet Critic -- Raids Innocent Grandma InsteadCop Karate Chops NY Judge In The Throat