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Puerto Rico Has No Federal Income Tax; You Simply Pay Them 4%!

John Stossel on

Given Puerto Rico's history, she says, that fear is justified. "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."

But these new Puerto Ricans aren't exactly conquerors.

They're a mix of entrepreneurs, tax haters, crypto millionaires and ordinary people who just want to keep more of their money. By bringing wealth and skills to Puerto Rico, they create opportunity for Puerto Ricans. One report says they have already created 40,000 new jobs.

"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.

Billionaire Brock Pierce moved to Puerto Rico and now helps run the charity Toys for Tots. He also is renovating a hotel that was abandoned after Hurricane Maria. That's expected to create 300 jobs. Others are building hurricane-resistant farms, tech companies and schools.

But some people always see such 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."

She seems to think that if someone makes money, others must lose, as if there are only winners or losers. This is zero-sum thinking.

 

It's true in politics. But it's not true in most of life. Wherever markets are free, new wealth gets created. Then almost everyone wins.

DaSilva has an answer to Ocasio-Cortez's zero-sum thinking:

"All ships rise with a tide," she says. "Let's all grow with this."

Puerto Rico has tried big government, strict regulations, high taxes on businesses, handouts to favored groups, heavy borrowing and declaring bankruptcy.

I bet tax breaks work better.

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John Stossel is creator of Stossel TV and author of "Give Me a Break: How I Exposed Hucksters, Cheats, and Scam Artists and Became the Scourge of the Liberal Media." For other Creators Syndicate writers and cartoonists, visit www.creators.com.

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