From: "Dan Minette" <[EMAIL PROTECTED]> Well, let me quote from
http://click.hotbot.com/director.asp?id=2&query=puerto+rico+taxes+&rsource= INK&target=http%3A%2F%2Fwelcome%2Etopuertorico%2Eorg%2Fgovernment%2Eshtml
Hi, Dan. Thanks for bringing these sources to my attention. I love it when I read these interpretations of real political facts. People are always surprised to find out that they may be a little far from the truth.
<quote> The major differences between Puerto Rico and the 50 states are its local taxation system and exemption from Internal Revenue Code, its lack of voting representation in either house of the U.S. Congress, the ineligibility of Puerto Ricans to vote in presidential elections, and its lack of assignation of some revenues reserved for the states. <end quote>
I should have clarified that by saying "we pay taxes" I meant that we pay local taxes and report all our wages to the Federal Government. What would be the equivalent of "sales taxes" are embedded in the prices paid for products we buy at the stores, etc. They are set in the "distribution line" of the products instead.
Also, a good chunk of our salary goes to the Feds in the form of payment of Social Security, Medicare, etc. Trust me. I know. My paycheck suffers just like anyone else's because of it.
However, we do get a *lot* back from the Federal Government, in the form of financial aids and privileges of all sorts. I am by no means putting the Feds down for their support. This is just an island, and nothing more. We don't have the financial infrastructure to guarantee us a future that is not linked to the USA.
Puerto Rico voted down (narrowly) becoming a state (at least twice IIRC) in the last few decades.
This is a gross misinterpretation of facts. We have yet to have the final showdown referendum of "statehood vs. independence". What we have had are referendums for constitutional changes, and for defining our posture on certain foreign affairs. But to date, no governor has had the gull, in the last 25 years, to handle that political hot-potato. The island is simply not ready to make that choice.
There was a referendum to try to narrow down the choices between statehood, commonwealth and independence. But it was just for that: to choose what would be voted for in the final referendum, and this one has yet to happen.
They also voted down independence by a wide margin.
Independence is NOT a popular option. Never was, never will be. This much is true. 2% in favor, 98% against independence. Is that a wide margin or what? :)
The fact that they get many of the benefits of US citizenship (including Medicaid IIRC) without paying income tax is considered a key reason that statehood was voted down. Many people calculate that Puerto Rico is in a better financial position than it would be as a state as a result of this.
Not true. This is a major fallacy. "Getting many of the benefits without paying income tax" is NOT a reason why statehood was voted down. Statehood has never been voted down because we haven't had a chance to vote on it, to say our final word on the subject.
And we may not pay taxes openly, but again, the taxes are there. They are just embedded in the prices of the articles we pay and similar areas related to trade and commerce. Cost of living is really high down here. I have read reports that indicate clearly that many states of the Union have a lower tax rate than us. This is one of the fuel arguments of the pro-statehood cause.
But, there are indeed benefits in becoming a state, and statehood may pass the next election. It doesn't take a revolution; it just takes voting yes. Congress has to approve statehood, but it has indicated a willingness to do this after a yes vote in the past, and I don't see this as a big hurdle.
Dan M.
Thanks,
JJ
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