Making a Crypto Utopia in Puerto Rico
nytimes.com
Making a Crypto Utopia in Puerto Rico
1–10 of 31 posts
Re: Making a Crypto Utopia in Puerto Rico
#2Puerto Rico is still in the US...I don't really understand how they expect to avoid taxes by being in Peurto Rico.
Also pay your fucking taxes you entitled douchebags.
Re: Making a Crypto Utopia in Puerto Rico
#3Puerto Rico is still in the US...I don't really understand how they expect to avoid taxes by being in Peurto Rico. Also pay your fucking taxes you entitled douchebags.
From the article:
"Puerto Rico offers an unparalleled tax incentive: no federal personal income taxes, no capital gains tax and favorable business taxes — all without having to renounce your American citizenship."
Re: Making a Crypto Utopia in Puerto Rico
#4Puerto Rico is still in the US...I don't really understand how they expect to avoid taxes by being in Peurto Rico. Also pay your fucking taxes you entitled douchebags.
From the article: "Puerto Rico offers an unparalleled tax incentive: no federal personal income taxes, no capital gains tax and favorable business taxes — all without having to renounce your American citizenship."
So the IRS can tax Americans everywhere in the world except Puerto Rico?
Re: Making a Crypto Utopia in Puerto Rico
#5>“I’m worried people are going to misinterpret our actions,” Mr. Pierce said. “That we’re just coming to Puerto Rico to dodge taxes.”
Then just a few paragraphs later...
>“So, no. No, I don’t want to pay taxes,” Mr. Collins said. “This is the first time in human history anyone other than kings or governments or gods can create their own money.”
>“When Brock said, ‘We’re moving to Puerto Rico for the taxes and to create this new town,’ I said, ‘I’m in,’” Mr. Collins said. “Sight unseen.”
Re: Making a Crypto Utopia in Puerto Rico
#6Earlier quoted context omitted.
From the article: "Puerto Rico offers an unparalleled tax incentive: no federal personal income taxes, no capital gains tax and favorable business taxes — all without having to renounce your American citizenship."
So the IRS can tax Americans everywhere in the world except Puerto Rico?
"The following items shall not be included in gross income and shall be exempt from taxation under this subtitle...In the case of an individual who is a bona fide resident of Puerto Rico during the entire taxable year, income derived from sources within Puerto Rico (except amounts received for services performed as an employee of the United States or any agency thereof)..."
The "subtitle" in question is is 26 U.S.C. Subtitle A, i.e. the Income Taxes subtitle [2].
[1] https://www.law.cornell.edu/uscode/text/26/933
[2] https://www.law.cornell.edu/uscode/text/26/subtitle-A
Disclaimer: I am neither a lawyer nor a tax specialist. This is not advice of any kind. Do not interpret my Internet commentary as legal or tax advice.
Re: Making a Crypto Utopia in Puerto Rico
#7Earlier quoted context omitted.
From the article: "Puerto Rico offers an unparalleled tax incentive: no federal personal income taxes, no capital gains tax and favorable business taxes — all without having to renounce your American citizenship."
So the IRS can tax Americans everywhere in the world except Puerto Rico?
I believe capital gains are not taxed in PR to incentivize new investment from the US. There are a handful of other tax incentives too.
Re: Making a Crypto Utopia in Puerto Rico
#8Puerto Rico is still in the US...I don't really understand how they expect to avoid taxes by being in Peurto Rico. Also pay your fucking taxes you entitled douchebags.
From the article: "Puerto Rico offers an unparalleled tax incentive: no federal personal income taxes, no capital gains tax and favorable business taxes — all without having to renounce your American citizenship."
As a note - Residents of US Territories pay territorial personal income taxes instead of federal personal income taxes. In the US Virgin Islands, for example, the tax rates are the exact same, as the USVI tax code mirrors the US Tax Code. The same amount of money leaves your bank account, it just goes to the territory instead of the fed - you even use the exact same Form 1040.
Re: Making a Crypto Utopia in Puerto Rico
#9This feels like some crazy fantasy land. What are they really going to achieve down there? Seems like a bunch of people with way too much money and way too little direction. Does anyone disagree?
...on the other hand, one can certainly be a little jealous of the ability to be so aimless :).
Re: Making a Crypto Utopia in Puerto Rico
#10Earlier quoted context omitted.
From the article: "Puerto Rico offers an unparalleled tax incentive: no federal personal income taxes, no capital gains tax and favorable business taxes — all without having to renounce your American citizenship."
So the IRS can tax Americans everywhere in the world except Puerto Rico?
> So the IRS can tax Americans everywhere in the world except Puerto Rico?
Congress passed some tax laws to incentivize "investment" in Puerto Rico. They haven't been particularly effective.
The reason that they passed these tax laws is because they wanted to try something to boost the Puerto Rican economy that did not involve addressing the underlying issue for why Puerto Rico's economy has stagnated for decades. Repealing the Jones Act would fix most of these problems, but the Jones Act is politically popular with major Democratic supporters, and Republicans (as a party) tend not to care about Puerto Rico, so the initiative to repeal it never went anywhere.
In the end, there's no amount of tax incentivizing that can make up for the costs that the Jones Act imposes on the Puerto Rican economy, which is why the tax laws didn't halt the brain drain. Of course, the failure to provide effective disaster relief in Puerto Rico this past year hasn't exactly helped either.