Contrary to common misconception, residents of Puerto Rico do pay U.S. federal taxes: customs taxes (which are subsequently returned to the Puerto Rico Treasury) (See Dept of the Interior, Office of Insular Affairs. DOI.gov)Archived 2012-06-10 at the Wayback Machine, import/export taxes (See Stanford.wellsphere.com)Archived 2010-04-01 at the Wayback Machine, federal commodity taxes (See Stanford.wellsphere.com)Archived April 1, 2010, at the Wayback Machine, social security taxes (See IRS.gov), etc. Residents pay federal payroll taxes, such as Social Security (See IRS.gov) and Medicare (See Reuters.com), as well as Commonwealth of Puerto Rico income taxes (See Puertorico-herald.org and HTRCPA.comArchived April 29, 2011, at the Wayback Machine). All federal employees (See Heritage.org)Archived 2010-02-10 at the Wayback Machine, those who do business with the federal government (See MCVPR.com)Archived May 15, 2011, at the Wayback Machine, Puerto Rico-based corporations that intend to send funds to the U.S. (See p. 9, line 1.)Archived September 3, 2009, at the Wayback Machine, and some others (For example, Puerto Rican residents that are members of the U.S. military, See Heritage.orgArchived February 10, 2010, at the Wayback Machine ; and Puerto Rico residents who earned income from sources outside Puerto Rico, See pp 14–15.) also pay federal income taxes. In addition, because the cutoff point for income taxation is lower than that of the U.S. IRS code, and because the per-capita income in Puerto Rico is much lower than the average per-capita income on the mainland, more Puerto Rico residents pay income taxes to the local taxation authority than if the IRS code were applied to the island. This occurs because "the Commonwealth of Puerto Rico government has a wider set of responsibilities than do U.S. State and local governments" (See GAO.gov). As residents of Puerto Rico pay into Social Security, Puerto Ricans are eligible for Social Security benefits upon retirement, but are excluded from the Supplemental Security Income (SSI) (Commonwealth of Puerto Rico residents, unlike residents of the Commonwealth of the Northern Mariana Islands and residents of the 50 States, do not receive the SSI. See Socialsecurity.gov), and the island actually receives less than 15% of the Medicaid funding it would normally receive if it were a U.S. state. However, Medicare providers receive less-than-full state-like reimbursements for services rendered to beneficiaries in Puerto Rico, even though the latter paid fully into the system (See p 252).Archived 2011-05-11 at the Wayback Machine In general, "many federal social welfare programs have been extended to Puerto Rican (sic) residents, although usually with caps inferior to those allocated to the states." (The Louisiana Purchase and American Expansion: 1803–1898. By Sanford Levinson and Bartholomew H. Sparrow. New York: Rowman and Littlefield Publishers. 2005. Page 167. For a comprehensive coverage of federal programs made extensive to Puerto Rico see Richard Cappalli's Federal Aid to Puerto Rico (1970)). It has also been estimated (See Egleforum.org) that, because the population of the Island is greater than that of 50% of the States, if it were a state, Puerto Rico would have six to eight seats in the House, in addition to the two seats in the Senate.(See Eagleforum.org, CRF-USA.orgArchived 2009-06-10 at the Wayback Machine and Thomas.govArchived February 1, 2016, at the Wayback Machine [For the later, the official U.S. Congress database website, you will need to resubmit a query. The document in question is called "House Report 110-597 - Puerto Rico Democracy Act of 2007." These are the steps to follow: THOMAS.govArchived September 29, 2006, at the Wayback Machine > Committee Reports > 110 > drop down "Word/Phrase" and pick "Report Number" > type "597" next to Report Number. This will provide the document "House Report 110-597 - 2007", then from the Table of Contents choose "Background and need for legislation".). Another misconception is that the import/export taxes collected by the U.S. on products manufactured in Puerto Rico are all returned to the Puerto Rico Treasury. This is not the case. Such import/export taxes are returned only for rum products, and even then the US Treasury keeps a portion of those taxes (See the "House Report 110-597 - Puerto Rico Democracy Act of 2007" mentioned above.)
doi.gov
Contrary to common misconception, residents of Puerto Rico do pay U.S. federal taxes: customs taxes (which are subsequently returned to the Puerto Rico Treasury) (See Dept of the Interior, Office of Insular Affairs. DOI.gov)Archived 2012-06-10 at the Wayback Machine, import/export taxes (See Stanford.wellsphere.com)Archived 2010-04-01 at the Wayback Machine, federal commodity taxes (See Stanford.wellsphere.com)Archived April 1, 2010, at the Wayback Machine, social security taxes (See IRS.gov), etc. Residents pay federal payroll taxes, such as Social Security (See IRS.gov) and Medicare (See Reuters.com), as well as Commonwealth of Puerto Rico income taxes (See Puertorico-herald.org and HTRCPA.comArchived April 29, 2011, at the Wayback Machine). All federal employees (See Heritage.org)Archived 2010-02-10 at the Wayback Machine, those who do business with the federal government (See MCVPR.com)Archived May 15, 2011, at the Wayback Machine, Puerto Rico-based corporations that intend to send funds to the U.S. (See p. 9, line 1.)Archived September 3, 2009, at the Wayback Machine, and some others (For example, Puerto Rican residents that are members of the U.S. military, See Heritage.orgArchived February 10, 2010, at the Wayback Machine ; and Puerto Rico residents who earned income from sources outside Puerto Rico, See pp 14–15.) also pay federal income taxes. In addition, because the cutoff point for income taxation is lower than that of the U.S. IRS code, and because the per-capita income in Puerto Rico is much lower than the average per-capita income on the mainland, more Puerto Rico residents pay income taxes to the local taxation authority than if the IRS code were applied to the island. This occurs because "the Commonwealth of Puerto Rico government has a wider set of responsibilities than do U.S. State and local governments" (See GAO.gov). As residents of Puerto Rico pay into Social Security, Puerto Ricans are eligible for Social Security benefits upon retirement, but are excluded from the Supplemental Security Income (SSI) (Commonwealth of Puerto Rico residents, unlike residents of the Commonwealth of the Northern Mariana Islands and residents of the 50 States, do not receive the SSI. See Socialsecurity.gov), and the island actually receives less than 15% of the Medicaid funding it would normally receive if it were a U.S. state. However, Medicare providers receive less-than-full state-like reimbursements for services rendered to beneficiaries in Puerto Rico, even though the latter paid fully into the system (See p 252).Archived 2011-05-11 at the Wayback Machine In general, "many federal social welfare programs have been extended to Puerto Rican (sic) residents, although usually with caps inferior to those allocated to the states." (The Louisiana Purchase and American Expansion: 1803–1898. By Sanford Levinson and Bartholomew H. Sparrow. New York: Rowman and Littlefield Publishers. 2005. Page 167. For a comprehensive coverage of federal programs made extensive to Puerto Rico see Richard Cappalli's Federal Aid to Puerto Rico (1970)). It has also been estimated (See Egleforum.org) that, because the population of the Island is greater than that of 50% of the States, if it were a state, Puerto Rico would have six to eight seats in the House, in addition to the two seats in the Senate.(See Eagleforum.org, CRF-USA.orgArchived 2009-06-10 at the Wayback Machine and Thomas.govArchived February 1, 2016, at the Wayback Machine [For the later, the official U.S. Congress database website, you will need to resubmit a query. The document in question is called "House Report 110-597 - Puerto Rico Democracy Act of 2007." These are the steps to follow: THOMAS.govArchived September 29, 2006, at the Wayback Machine > Committee Reports > 110 > drop down "Word/Phrase" and pick "Report Number" > type "597" next to Report Number. This will provide the document "House Report 110-597 - 2007", then from the Table of Contents choose "Background and need for legislation".). Another misconception is that the import/export taxes collected by the U.S. on products manufactured in Puerto Rico are all returned to the Puerto Rico Treasury. This is not the case. Such import/export taxes are returned only for rum products, and even then the US Treasury keeps a portion of those taxes (See the "House Report 110-597 - Puerto Rico Democracy Act of 2007" mentioned above.)
Contrary to common misconception, residents of Puerto Rico do pay U.S. federal taxes: customs taxes (which are subsequently returned to the Puerto Rico Treasury) (See Dept of the Interior, Office of Insular Affairs. DOI.gov)Archived 2012-06-10 at the Wayback Machine, import/export taxes (See Stanford.wellsphere.com)Archived 2010-04-01 at the Wayback Machine, federal commodity taxes (See Stanford.wellsphere.com)Archived April 1, 2010, at the Wayback Machine, social security taxes (See IRS.gov), etc. Residents pay federal payroll taxes, such as Social Security (See IRS.gov) and Medicare (See Reuters.com), as well as Commonwealth of Puerto Rico income taxes (See Puertorico-herald.org and HTRCPA.comArchived April 29, 2011, at the Wayback Machine). All federal employees (See Heritage.org)Archived 2010-02-10 at the Wayback Machine, those who do business with the federal government (See MCVPR.com)Archived May 15, 2011, at the Wayback Machine, Puerto Rico-based corporations that intend to send funds to the U.S. (See p. 9, line 1.)Archived September 3, 2009, at the Wayback Machine, and some others (For example, Puerto Rican residents that are members of the U.S. military, See Heritage.orgArchived February 10, 2010, at the Wayback Machine ; and Puerto Rico residents who earned income from sources outside Puerto Rico, See pp 14–15.) also pay federal income taxes. In addition, because the cutoff point for income taxation is lower than that of the U.S. IRS code, and because the per-capita income in Puerto Rico is much lower than the average per-capita income on the mainland, more Puerto Rico residents pay income taxes to the local taxation authority than if the IRS code were applied to the island. This occurs because "the Commonwealth of Puerto Rico government has a wider set of responsibilities than do U.S. State and local governments" (See GAO.gov). As residents of Puerto Rico pay into Social Security, Puerto Ricans are eligible for Social Security benefits upon retirement, but are excluded from the Supplemental Security Income (SSI) (Commonwealth of Puerto Rico residents, unlike residents of the Commonwealth of the Northern Mariana Islands and residents of the 50 States, do not receive the SSI. See Socialsecurity.gov), and the island actually receives less than 15% of the Medicaid funding it would normally receive if it were a U.S. state. However, Medicare providers receive less-than-full state-like reimbursements for services rendered to beneficiaries in Puerto Rico, even though the latter paid fully into the system (See p 252).Archived 2011-05-11 at the Wayback Machine In general, "many federal social welfare programs have been extended to Puerto Rican (sic) residents, although usually with caps inferior to those allocated to the states." (The Louisiana Purchase and American Expansion: 1803–1898. By Sanford Levinson and Bartholomew H. Sparrow. New York: Rowman and Littlefield Publishers. 2005. Page 167. For a comprehensive coverage of federal programs made extensive to Puerto Rico see Richard Cappalli's Federal Aid to Puerto Rico (1970)). It has also been estimated (See Egleforum.org) that, because the population of the Island is greater than that of 50% of the States, if it were a state, Puerto Rico would have six to eight seats in the House, in addition to the two seats in the Senate.(See Eagleforum.org, CRF-USA.orgArchived 2009-06-10 at the Wayback Machine and Thomas.govArchived February 1, 2016, at the Wayback Machine [For the later, the official U.S. Congress database website, you will need to resubmit a query. The document in question is called "House Report 110-597 - Puerto Rico Democracy Act of 2007." These are the steps to follow: THOMAS.govArchived September 29, 2006, at the Wayback Machine > Committee Reports > 110 > drop down "Word/Phrase" and pick "Report Number" > type "597" next to Report Number. This will provide the document "House Report 110-597 - 2007", then from the Table of Contents choose "Background and need for legislation".). Another misconception is that the import/export taxes collected by the U.S. on products manufactured in Puerto Rico are all returned to the Puerto Rico Treasury. This is not the case. Such import/export taxes are returned only for rum products, and even then the US Treasury keeps a portion of those taxes (See the "House Report 110-597 - Puerto Rico Democracy Act of 2007" mentioned above.)
Contrary to common misconception, residents of Puerto Rico do pay U.S. federal taxes: customs taxes (which are subsequently returned to the Puerto Rico Treasury) (See Dept of the Interior, Office of Insular Affairs. DOI.gov)Archived 2012-06-10 at the Wayback Machine, import/export taxes (See Stanford.wellsphere.com)Archived 2010-04-01 at the Wayback Machine, federal commodity taxes (See Stanford.wellsphere.com)Archived April 1, 2010, at the Wayback Machine, social security taxes (See IRS.gov), etc. Residents pay federal payroll taxes, such as Social Security (See IRS.gov) and Medicare (See Reuters.com), as well as Commonwealth of Puerto Rico income taxes (See Puertorico-herald.org and HTRCPA.comArchived April 29, 2011, at the Wayback Machine). All federal employees (See Heritage.org)Archived 2010-02-10 at the Wayback Machine, those who do business with the federal government (See MCVPR.com)Archived May 15, 2011, at the Wayback Machine, Puerto Rico-based corporations that intend to send funds to the U.S. (See p. 9, line 1.)Archived September 3, 2009, at the Wayback Machine, and some others (For example, Puerto Rican residents that are members of the U.S. military, See Heritage.orgArchived February 10, 2010, at the Wayback Machine ; and Puerto Rico residents who earned income from sources outside Puerto Rico, See pp 14–15.) also pay federal income taxes. In addition, because the cutoff point for income taxation is lower than that of the U.S. IRS code, and because the per-capita income in Puerto Rico is much lower than the average per-capita income on the mainland, more Puerto Rico residents pay income taxes to the local taxation authority than if the IRS code were applied to the island. This occurs because "the Commonwealth of Puerto Rico government has a wider set of responsibilities than do U.S. State and local governments" (See GAO.gov). As residents of Puerto Rico pay into Social Security, Puerto Ricans are eligible for Social Security benefits upon retirement, but are excluded from the Supplemental Security Income (SSI) (Commonwealth of Puerto Rico residents, unlike residents of the Commonwealth of the Northern Mariana Islands and residents of the 50 States, do not receive the SSI. See Socialsecurity.gov), and the island actually receives less than 15% of the Medicaid funding it would normally receive if it were a U.S. state. However, Medicare providers receive less-than-full state-like reimbursements for services rendered to beneficiaries in Puerto Rico, even though the latter paid fully into the system (See p 252).Archived 2011-05-11 at the Wayback Machine In general, "many federal social welfare programs have been extended to Puerto Rican (sic) residents, although usually with caps inferior to those allocated to the states." (The Louisiana Purchase and American Expansion: 1803–1898. By Sanford Levinson and Bartholomew H. Sparrow. New York: Rowman and Littlefield Publishers. 2005. Page 167. For a comprehensive coverage of federal programs made extensive to Puerto Rico see Richard Cappalli's Federal Aid to Puerto Rico (1970)). It has also been estimated (See Egleforum.org) that, because the population of the Island is greater than that of 50% of the States, if it were a state, Puerto Rico would have six to eight seats in the House, in addition to the two seats in the Senate.(See Eagleforum.org, CRF-USA.orgArchived 2009-06-10 at the Wayback Machine and Thomas.govArchived February 1, 2016, at the Wayback Machine [For the later, the official U.S. Congress database website, you will need to resubmit a query. The document in question is called "House Report 110-597 - Puerto Rico Democracy Act of 2007." These are the steps to follow: THOMAS.govArchived September 29, 2006, at the Wayback Machine > Committee Reports > 110 > drop down "Word/Phrase" and pick "Report Number" > type "597" next to Report Number. This will provide the document "House Report 110-597 - 2007", then from the Table of Contents choose "Background and need for legislation".). Another misconception is that the import/export taxes collected by the U.S. on products manufactured in Puerto Rico are all returned to the Puerto Rico Treasury. This is not the case. Such import/export taxes are returned only for rum products, and even then the US Treasury keeps a portion of those taxes (See the "House Report 110-597 - Puerto Rico Democracy Act of 2007" mentioned above.)
United States Government Printing Office, at Amendments to the Constitution of the United States of AmericaArchived 2008-02-05 at the Wayback Machine; see generally United States v. Thomas, 788 F.2d 1250 (7th Cir. 1986), cert. denied, 107 S.Ct. 187 (1986); Ficalora v. Commissioner, 751 F.2d 85, 85-1 U.S. Tax Cas. (CCH) ¶ 9103 (2d Cir. 1984); Sisk v. Commissioner, 791 F.2d 58, 86-1 U.S. Tax Cas. (CCH) ¶ 9433 (6th Cir. 1986); United States v. Sitka, 845 F.2d 43, 88-1 U.S. Tax Cas. (CCH) ¶ 9308 (2d Cir.), cert. denied, 488 U.S. 827 (1988); United States v. Stahl, 792 F.2d 1438, 86-2 U.S. Tax Cas. (CCH) ¶ 9518 (9th Cir. 1986), cert. denied, 107 S. Ct. 888 (1987); Brown v. Commissioner, 53 T.C.M. (CCH) 94, T.C. Memo 1987–78, CCH Dec. 43,696(M) (1987); Lysiak v. Commissioner, 816 F.2d 311, 87-1 U.S. Tax Cas. (CCH) ¶ 9296 (7th Cir. 1987); Miller v. United States, 868 F.2d 236, 89-1 U.S. Tax Cas. (CCH) ¶ 9184 (7th Cir. 1989); also, see generally Boris I. Bittker, Constitutional Limits on the Taxing Power of the Federal Government, The Tax Lawyer, Fall 1987, Vol. 41, No. 1, p. 3 (American Bar Ass'n).
heritage.org
heritage.org
Contrary to common misconception, residents of Puerto Rico do pay U.S. federal taxes: customs taxes (which are subsequently returned to the Puerto Rico Treasury) (See Dept of the Interior, Office of Insular Affairs. DOI.gov)Archived 2012-06-10 at the Wayback Machine, import/export taxes (See Stanford.wellsphere.com)Archived 2010-04-01 at the Wayback Machine, federal commodity taxes (See Stanford.wellsphere.com)Archived April 1, 2010, at the Wayback Machine, social security taxes (See IRS.gov), etc. Residents pay federal payroll taxes, such as Social Security (See IRS.gov) and Medicare (See Reuters.com), as well as Commonwealth of Puerto Rico income taxes (See Puertorico-herald.org and HTRCPA.comArchived April 29, 2011, at the Wayback Machine). All federal employees (See Heritage.org)Archived 2010-02-10 at the Wayback Machine, those who do business with the federal government (See MCVPR.com)Archived May 15, 2011, at the Wayback Machine, Puerto Rico-based corporations that intend to send funds to the U.S. (See p. 9, line 1.)Archived September 3, 2009, at the Wayback Machine, and some others (For example, Puerto Rican residents that are members of the U.S. military, See Heritage.orgArchived February 10, 2010, at the Wayback Machine ; and Puerto Rico residents who earned income from sources outside Puerto Rico, See pp 14–15.) also pay federal income taxes. In addition, because the cutoff point for income taxation is lower than that of the U.S. IRS code, and because the per-capita income in Puerto Rico is much lower than the average per-capita income on the mainland, more Puerto Rico residents pay income taxes to the local taxation authority than if the IRS code were applied to the island. This occurs because "the Commonwealth of Puerto Rico government has a wider set of responsibilities than do U.S. State and local governments" (See GAO.gov). As residents of Puerto Rico pay into Social Security, Puerto Ricans are eligible for Social Security benefits upon retirement, but are excluded from the Supplemental Security Income (SSI) (Commonwealth of Puerto Rico residents, unlike residents of the Commonwealth of the Northern Mariana Islands and residents of the 50 States, do not receive the SSI. See Socialsecurity.gov), and the island actually receives less than 15% of the Medicaid funding it would normally receive if it were a U.S. state. However, Medicare providers receive less-than-full state-like reimbursements for services rendered to beneficiaries in Puerto Rico, even though the latter paid fully into the system (See p 252).Archived 2011-05-11 at the Wayback Machine In general, "many federal social welfare programs have been extended to Puerto Rican (sic) residents, although usually with caps inferior to those allocated to the states." (The Louisiana Purchase and American Expansion: 1803–1898. By Sanford Levinson and Bartholomew H. Sparrow. New York: Rowman and Littlefield Publishers. 2005. Page 167. For a comprehensive coverage of federal programs made extensive to Puerto Rico see Richard Cappalli's Federal Aid to Puerto Rico (1970)). It has also been estimated (See Egleforum.org) that, because the population of the Island is greater than that of 50% of the States, if it were a state, Puerto Rico would have six to eight seats in the House, in addition to the two seats in the Senate.(See Eagleforum.org, CRF-USA.orgArchived 2009-06-10 at the Wayback Machine and Thomas.govArchived February 1, 2016, at the Wayback Machine [For the later, the official U.S. Congress database website, you will need to resubmit a query. The document in question is called "House Report 110-597 - Puerto Rico Democracy Act of 2007." These are the steps to follow: THOMAS.govArchived September 29, 2006, at the Wayback Machine > Committee Reports > 110 > drop down "Word/Phrase" and pick "Report Number" > type "597" next to Report Number. This will provide the document "House Report 110-597 - 2007", then from the Table of Contents choose "Background and need for legislation".). Another misconception is that the import/export taxes collected by the U.S. on products manufactured in Puerto Rico are all returned to the Puerto Rico Treasury. This is not the case. Such import/export taxes are returned only for rum products, and even then the US Treasury keeps a portion of those taxes (See the "House Report 110-597 - Puerto Rico Democracy Act of 2007" mentioned above.)
Contrary to common misconception, residents of Puerto Rico do pay U.S. federal taxes: customs taxes (which are subsequently returned to the Puerto Rico Treasury) (See Dept of the Interior, Office of Insular Affairs. DOI.gov)Archived 2012-06-10 at the Wayback Machine, import/export taxes (See Stanford.wellsphere.com)Archived 2010-04-01 at the Wayback Machine, federal commodity taxes (See Stanford.wellsphere.com)Archived April 1, 2010, at the Wayback Machine, social security taxes (See IRS.gov), etc. Residents pay federal payroll taxes, such as Social Security (See IRS.gov) and Medicare (See Reuters.com), as well as Commonwealth of Puerto Rico income taxes (See Puertorico-herald.org and HTRCPA.comArchived April 29, 2011, at the Wayback Machine). All federal employees (See Heritage.org)Archived 2010-02-10 at the Wayback Machine, those who do business with the federal government (See MCVPR.com)Archived May 15, 2011, at the Wayback Machine, Puerto Rico-based corporations that intend to send funds to the U.S. (See p. 9, line 1.)Archived September 3, 2009, at the Wayback Machine, and some others (For example, Puerto Rican residents that are members of the U.S. military, See Heritage.orgArchived February 10, 2010, at the Wayback Machine ; and Puerto Rico residents who earned income from sources outside Puerto Rico, See pp 14–15.) also pay federal income taxes. In addition, because the cutoff point for income taxation is lower than that of the U.S. IRS code, and because the per-capita income in Puerto Rico is much lower than the average per-capita income on the mainland, more Puerto Rico residents pay income taxes to the local taxation authority than if the IRS code were applied to the island. This occurs because "the Commonwealth of Puerto Rico government has a wider set of responsibilities than do U.S. State and local governments" (See GAO.gov). As residents of Puerto Rico pay into Social Security, Puerto Ricans are eligible for Social Security benefits upon retirement, but are excluded from the Supplemental Security Income (SSI) (Commonwealth of Puerto Rico residents, unlike residents of the Commonwealth of the Northern Mariana Islands and residents of the 50 States, do not receive the SSI. See Socialsecurity.gov), and the island actually receives less than 15% of the Medicaid funding it would normally receive if it were a U.S. state. However, Medicare providers receive less-than-full state-like reimbursements for services rendered to beneficiaries in Puerto Rico, even though the latter paid fully into the system (See p 252).Archived 2011-05-11 at the Wayback Machine In general, "many federal social welfare programs have been extended to Puerto Rican (sic) residents, although usually with caps inferior to those allocated to the states." (The Louisiana Purchase and American Expansion: 1803–1898. By Sanford Levinson and Bartholomew H. Sparrow. New York: Rowman and Littlefield Publishers. 2005. Page 167. For a comprehensive coverage of federal programs made extensive to Puerto Rico see Richard Cappalli's Federal Aid to Puerto Rico (1970)). It has also been estimated (See Egleforum.org) that, because the population of the Island is greater than that of 50% of the States, if it were a state, Puerto Rico would have six to eight seats in the House, in addition to the two seats in the Senate.(See Eagleforum.org, CRF-USA.orgArchived 2009-06-10 at the Wayback Machine and Thomas.govArchived February 1, 2016, at the Wayback Machine [For the later, the official U.S. Congress database website, you will need to resubmit a query. The document in question is called "House Report 110-597 - Puerto Rico Democracy Act of 2007." These are the steps to follow: THOMAS.govArchived September 29, 2006, at the Wayback Machine > Committee Reports > 110 > drop down "Word/Phrase" and pick "Report Number" > type "597" next to Report Number. This will provide the document "House Report 110-597 - 2007", then from the Table of Contents choose "Background and need for legislation".). Another misconception is that the import/export taxes collected by the U.S. on products manufactured in Puerto Rico are all returned to the Puerto Rico Treasury. This is not the case. Such import/export taxes are returned only for rum products, and even then the US Treasury keeps a portion of those taxes (See the "House Report 110-597 - Puerto Rico Democracy Act of 2007" mentioned above.)
Contrary to common misconception, residents of Puerto Rico do pay U.S. federal taxes: customs taxes (which are subsequently returned to the Puerto Rico Treasury) (See Dept of the Interior, Office of Insular Affairs. DOI.gov)Archived 2012-06-10 at the Wayback Machine, import/export taxes (See Stanford.wellsphere.com)Archived 2010-04-01 at the Wayback Machine, federal commodity taxes (See Stanford.wellsphere.com)Archived April 1, 2010, at the Wayback Machine, social security taxes (See IRS.gov), etc. Residents pay federal payroll taxes, such as Social Security (See IRS.gov) and Medicare (See Reuters.com), as well as Commonwealth of Puerto Rico income taxes (See Puertorico-herald.org and HTRCPA.comArchived April 29, 2011, at the Wayback Machine). All federal employees (See Heritage.org)Archived 2010-02-10 at the Wayback Machine, those who do business with the federal government (See MCVPR.com)Archived May 15, 2011, at the Wayback Machine, Puerto Rico-based corporations that intend to send funds to the U.S. (See p. 9, line 1.)Archived September 3, 2009, at the Wayback Machine, and some others (For example, Puerto Rican residents that are members of the U.S. military, See Heritage.orgArchived February 10, 2010, at the Wayback Machine ; and Puerto Rico residents who earned income from sources outside Puerto Rico, See pp 14–15.) also pay federal income taxes. In addition, because the cutoff point for income taxation is lower than that of the U.S. IRS code, and because the per-capita income in Puerto Rico is much lower than the average per-capita income on the mainland, more Puerto Rico residents pay income taxes to the local taxation authority than if the IRS code were applied to the island. This occurs because "the Commonwealth of Puerto Rico government has a wider set of responsibilities than do U.S. State and local governments" (See GAO.gov). As residents of Puerto Rico pay into Social Security, Puerto Ricans are eligible for Social Security benefits upon retirement, but are excluded from the Supplemental Security Income (SSI) (Commonwealth of Puerto Rico residents, unlike residents of the Commonwealth of the Northern Mariana Islands and residents of the 50 States, do not receive the SSI. See Socialsecurity.gov), and the island actually receives less than 15% of the Medicaid funding it would normally receive if it were a U.S. state. However, Medicare providers receive less-than-full state-like reimbursements for services rendered to beneficiaries in Puerto Rico, even though the latter paid fully into the system (See p 252).Archived 2011-05-11 at the Wayback Machine In general, "many federal social welfare programs have been extended to Puerto Rican (sic) residents, although usually with caps inferior to those allocated to the states." (The Louisiana Purchase and American Expansion: 1803–1898. By Sanford Levinson and Bartholomew H. Sparrow. New York: Rowman and Littlefield Publishers. 2005. Page 167. For a comprehensive coverage of federal programs made extensive to Puerto Rico see Richard Cappalli's Federal Aid to Puerto Rico (1970)). It has also been estimated (See Egleforum.org) that, because the population of the Island is greater than that of 50% of the States, if it were a state, Puerto Rico would have six to eight seats in the House, in addition to the two seats in the Senate.(See Eagleforum.org, CRF-USA.orgArchived 2009-06-10 at the Wayback Machine and Thomas.govArchived February 1, 2016, at the Wayback Machine [For the later, the official U.S. Congress database website, you will need to resubmit a query. The document in question is called "House Report 110-597 - Puerto Rico Democracy Act of 2007." These are the steps to follow: THOMAS.govArchived September 29, 2006, at the Wayback Machine > Committee Reports > 110 > drop down "Word/Phrase" and pick "Report Number" > type "597" next to Report Number. This will provide the document "House Report 110-597 - 2007", then from the Table of Contents choose "Background and need for legislation".). Another misconception is that the import/export taxes collected by the U.S. on products manufactured in Puerto Rico are all returned to the Puerto Rico Treasury. This is not the case. Such import/export taxes are returned only for rum products, and even then the US Treasury keeps a portion of those taxes (See the "House Report 110-597 - Puerto Rico Democracy Act of 2007" mentioned above.)
See below for additional reading. The U.S. Internal Revenue Service offers many free publications which are available online, including one for individuals and one for corporations, in both .pdf and web formats. An incomplete index is available by topic. Many states offer similar publications.
See generally 26 USC 1045, IRS Topic 409, Capital Gains and Losses and Publication 535, above; Fox chapters 13-14, Hoffman chapters 13–14, Pratt chapters 16–17.
Contrary to common misconception, residents of Puerto Rico do pay U.S. federal taxes: customs taxes (which are subsequently returned to the Puerto Rico Treasury) (See Dept of the Interior, Office of Insular Affairs. DOI.gov)Archived 2012-06-10 at the Wayback Machine, import/export taxes (See Stanford.wellsphere.com)Archived 2010-04-01 at the Wayback Machine, federal commodity taxes (See Stanford.wellsphere.com)Archived April 1, 2010, at the Wayback Machine, social security taxes (See IRS.gov), etc. Residents pay federal payroll taxes, such as Social Security (See IRS.gov) and Medicare (See Reuters.com), as well as Commonwealth of Puerto Rico income taxes (See Puertorico-herald.org and HTRCPA.comArchived April 29, 2011, at the Wayback Machine). All federal employees (See Heritage.org)Archived 2010-02-10 at the Wayback Machine, those who do business with the federal government (See MCVPR.com)Archived May 15, 2011, at the Wayback Machine, Puerto Rico-based corporations that intend to send funds to the U.S. (See p. 9, line 1.)Archived September 3, 2009, at the Wayback Machine, and some others (For example, Puerto Rican residents that are members of the U.S. military, See Heritage.orgArchived February 10, 2010, at the Wayback Machine ; and Puerto Rico residents who earned income from sources outside Puerto Rico, See pp 14–15.) also pay federal income taxes. In addition, because the cutoff point for income taxation is lower than that of the U.S. IRS code, and because the per-capita income in Puerto Rico is much lower than the average per-capita income on the mainland, more Puerto Rico residents pay income taxes to the local taxation authority than if the IRS code were applied to the island. This occurs because "the Commonwealth of Puerto Rico government has a wider set of responsibilities than do U.S. State and local governments" (See GAO.gov). As residents of Puerto Rico pay into Social Security, Puerto Ricans are eligible for Social Security benefits upon retirement, but are excluded from the Supplemental Security Income (SSI) (Commonwealth of Puerto Rico residents, unlike residents of the Commonwealth of the Northern Mariana Islands and residents of the 50 States, do not receive the SSI. See Socialsecurity.gov), and the island actually receives less than 15% of the Medicaid funding it would normally receive if it were a U.S. state. However, Medicare providers receive less-than-full state-like reimbursements for services rendered to beneficiaries in Puerto Rico, even though the latter paid fully into the system (See p 252).Archived 2011-05-11 at the Wayback Machine In general, "many federal social welfare programs have been extended to Puerto Rican (sic) residents, although usually with caps inferior to those allocated to the states." (The Louisiana Purchase and American Expansion: 1803–1898. By Sanford Levinson and Bartholomew H. Sparrow. New York: Rowman and Littlefield Publishers. 2005. Page 167. For a comprehensive coverage of federal programs made extensive to Puerto Rico see Richard Cappalli's Federal Aid to Puerto Rico (1970)). It has also been estimated (See Egleforum.org) that, because the population of the Island is greater than that of 50% of the States, if it were a state, Puerto Rico would have six to eight seats in the House, in addition to the two seats in the Senate.(See Eagleforum.org, CRF-USA.orgArchived 2009-06-10 at the Wayback Machine and Thomas.govArchived February 1, 2016, at the Wayback Machine [For the later, the official U.S. Congress database website, you will need to resubmit a query. The document in question is called "House Report 110-597 - Puerto Rico Democracy Act of 2007." These are the steps to follow: THOMAS.govArchived September 29, 2006, at the Wayback Machine > Committee Reports > 110 > drop down "Word/Phrase" and pick "Report Number" > type "597" next to Report Number. This will provide the document "House Report 110-597 - 2007", then from the Table of Contents choose "Background and need for legislation".). Another misconception is that the import/export taxes collected by the U.S. on products manufactured in Puerto Rico are all returned to the Puerto Rico Treasury. This is not the case. Such import/export taxes are returned only for rum products, and even then the US Treasury keeps a portion of those taxes (See the "House Report 110-597 - Puerto Rico Democracy Act of 2007" mentioned above.)
Joseph A. Hill, "The Civil War Income Tax", Quarterly Journal of Economics Vol. 8, No. 4 (July 1894), pp. 416–452. JSTOR1885003; appendix: JSTOR1885007.
Charles F. Dunbar, "The New Income Tax", Quarterly Journal of Economics, Vol. 9, No. 1 (Oct. 1894), pp. 26–46. JSTOR1883633.
Contrary to common misconception, residents of Puerto Rico do pay U.S. federal taxes: customs taxes (which are subsequently returned to the Puerto Rico Treasury) (See Dept of the Interior, Office of Insular Affairs. DOI.gov)Archived 2012-06-10 at the Wayback Machine, import/export taxes (See Stanford.wellsphere.com)Archived 2010-04-01 at the Wayback Machine, federal commodity taxes (See Stanford.wellsphere.com)Archived April 1, 2010, at the Wayback Machine, social security taxes (See IRS.gov), etc. Residents pay federal payroll taxes, such as Social Security (See IRS.gov) and Medicare (See Reuters.com), as well as Commonwealth of Puerto Rico income taxes (See Puertorico-herald.org and HTRCPA.comArchived April 29, 2011, at the Wayback Machine). All federal employees (See Heritage.org)Archived 2010-02-10 at the Wayback Machine, those who do business with the federal government (See MCVPR.com)Archived May 15, 2011, at the Wayback Machine, Puerto Rico-based corporations that intend to send funds to the U.S. (See p. 9, line 1.)Archived September 3, 2009, at the Wayback Machine, and some others (For example, Puerto Rican residents that are members of the U.S. military, See Heritage.orgArchived February 10, 2010, at the Wayback Machine ; and Puerto Rico residents who earned income from sources outside Puerto Rico, See pp 14–15.) also pay federal income taxes. In addition, because the cutoff point for income taxation is lower than that of the U.S. IRS code, and because the per-capita income in Puerto Rico is much lower than the average per-capita income on the mainland, more Puerto Rico residents pay income taxes to the local taxation authority than if the IRS code were applied to the island. This occurs because "the Commonwealth of Puerto Rico government has a wider set of responsibilities than do U.S. State and local governments" (See GAO.gov). As residents of Puerto Rico pay into Social Security, Puerto Ricans are eligible for Social Security benefits upon retirement, but are excluded from the Supplemental Security Income (SSI) (Commonwealth of Puerto Rico residents, unlike residents of the Commonwealth of the Northern Mariana Islands and residents of the 50 States, do not receive the SSI. See Socialsecurity.gov), and the island actually receives less than 15% of the Medicaid funding it would normally receive if it were a U.S. state. However, Medicare providers receive less-than-full state-like reimbursements for services rendered to beneficiaries in Puerto Rico, even though the latter paid fully into the system (See p 252).Archived 2011-05-11 at the Wayback Machine In general, "many federal social welfare programs have been extended to Puerto Rican (sic) residents, although usually with caps inferior to those allocated to the states." (The Louisiana Purchase and American Expansion: 1803–1898. By Sanford Levinson and Bartholomew H. Sparrow. New York: Rowman and Littlefield Publishers. 2005. Page 167. For a comprehensive coverage of federal programs made extensive to Puerto Rico see Richard Cappalli's Federal Aid to Puerto Rico (1970)). It has also been estimated (See Egleforum.org) that, because the population of the Island is greater than that of 50% of the States, if it were a state, Puerto Rico would have six to eight seats in the House, in addition to the two seats in the Senate.(See Eagleforum.org, CRF-USA.orgArchived 2009-06-10 at the Wayback Machine and Thomas.govArchived February 1, 2016, at the Wayback Machine [For the later, the official U.S. Congress database website, you will need to resubmit a query. The document in question is called "House Report 110-597 - Puerto Rico Democracy Act of 2007." These are the steps to follow: THOMAS.govArchived September 29, 2006, at the Wayback Machine > Committee Reports > 110 > drop down "Word/Phrase" and pick "Report Number" > type "597" next to Report Number. This will provide the document "House Report 110-597 - 2007", then from the Table of Contents choose "Background and need for legislation".). Another misconception is that the import/export taxes collected by the U.S. on products manufactured in Puerto Rico are all returned to the Puerto Rico Treasury. This is not the case. Such import/export taxes are returned only for rum products, and even then the US Treasury keeps a portion of those taxes (See the "House Report 110-597 - Puerto Rico Democracy Act of 2007" mentioned above.)
Contrary to common misconception, residents of Puerto Rico do pay U.S. federal taxes: customs taxes (which are subsequently returned to the Puerto Rico Treasury) (See Dept of the Interior, Office of Insular Affairs. DOI.gov)Archived 2012-06-10 at the Wayback Machine, import/export taxes (See Stanford.wellsphere.com)Archived 2010-04-01 at the Wayback Machine, federal commodity taxes (See Stanford.wellsphere.com)Archived April 1, 2010, at the Wayback Machine, social security taxes (See IRS.gov), etc. Residents pay federal payroll taxes, such as Social Security (See IRS.gov) and Medicare (See Reuters.com), as well as Commonwealth of Puerto Rico income taxes (See Puertorico-herald.org and HTRCPA.comArchived April 29, 2011, at the Wayback Machine). All federal employees (See Heritage.org)Archived 2010-02-10 at the Wayback Machine, those who do business with the federal government (See MCVPR.com)Archived May 15, 2011, at the Wayback Machine, Puerto Rico-based corporations that intend to send funds to the U.S. (See p. 9, line 1.)Archived September 3, 2009, at the Wayback Machine, and some others (For example, Puerto Rican residents that are members of the U.S. military, See Heritage.orgArchived February 10, 2010, at the Wayback Machine ; and Puerto Rico residents who earned income from sources outside Puerto Rico, See pp 14–15.) also pay federal income taxes. In addition, because the cutoff point for income taxation is lower than that of the U.S. IRS code, and because the per-capita income in Puerto Rico is much lower than the average per-capita income on the mainland, more Puerto Rico residents pay income taxes to the local taxation authority than if the IRS code were applied to the island. This occurs because "the Commonwealth of Puerto Rico government has a wider set of responsibilities than do U.S. State and local governments" (See GAO.gov). As residents of Puerto Rico pay into Social Security, Puerto Ricans are eligible for Social Security benefits upon retirement, but are excluded from the Supplemental Security Income (SSI) (Commonwealth of Puerto Rico residents, unlike residents of the Commonwealth of the Northern Mariana Islands and residents of the 50 States, do not receive the SSI. See Socialsecurity.gov), and the island actually receives less than 15% of the Medicaid funding it would normally receive if it were a U.S. state. However, Medicare providers receive less-than-full state-like reimbursements for services rendered to beneficiaries in Puerto Rico, even though the latter paid fully into the system (See p 252).Archived 2011-05-11 at the Wayback Machine In general, "many federal social welfare programs have been extended to Puerto Rican (sic) residents, although usually with caps inferior to those allocated to the states." (The Louisiana Purchase and American Expansion: 1803–1898. By Sanford Levinson and Bartholomew H. Sparrow. New York: Rowman and Littlefield Publishers. 2005. Page 167. For a comprehensive coverage of federal programs made extensive to Puerto Rico see Richard Cappalli's Federal Aid to Puerto Rico (1970)). It has also been estimated (See Egleforum.org) that, because the population of the Island is greater than that of 50% of the States, if it were a state, Puerto Rico would have six to eight seats in the House, in addition to the two seats in the Senate.(See Eagleforum.org, CRF-USA.orgArchived 2009-06-10 at the Wayback Machine and Thomas.govArchived February 1, 2016, at the Wayback Machine [For the later, the official U.S. Congress database website, you will need to resubmit a query. The document in question is called "House Report 110-597 - Puerto Rico Democracy Act of 2007." These are the steps to follow: THOMAS.govArchived September 29, 2006, at the Wayback Machine > Committee Reports > 110 > drop down "Word/Phrase" and pick "Report Number" > type "597" next to Report Number. This will provide the document "House Report 110-597 - 2007", then from the Table of Contents choose "Background and need for legislation".). Another misconception is that the import/export taxes collected by the U.S. on products manufactured in Puerto Rico are all returned to the Puerto Rico Treasury. This is not the case. Such import/export taxes are returned only for rum products, and even then the US Treasury keeps a portion of those taxes (See the "House Report 110-597 - Puerto Rico Democracy Act of 2007" mentioned above.)
puertorico-herald.org
Contrary to common misconception, residents of Puerto Rico do pay U.S. federal taxes: customs taxes (which are subsequently returned to the Puerto Rico Treasury) (See Dept of the Interior, Office of Insular Affairs. DOI.gov)Archived 2012-06-10 at the Wayback Machine, import/export taxes (See Stanford.wellsphere.com)Archived 2010-04-01 at the Wayback Machine, federal commodity taxes (See Stanford.wellsphere.com)Archived April 1, 2010, at the Wayback Machine, social security taxes (See IRS.gov), etc. Residents pay federal payroll taxes, such as Social Security (See IRS.gov) and Medicare (See Reuters.com), as well as Commonwealth of Puerto Rico income taxes (See Puertorico-herald.org and HTRCPA.comArchived April 29, 2011, at the Wayback Machine). All federal employees (See Heritage.org)Archived 2010-02-10 at the Wayback Machine, those who do business with the federal government (See MCVPR.com)Archived May 15, 2011, at the Wayback Machine, Puerto Rico-based corporations that intend to send funds to the U.S. (See p. 9, line 1.)Archived September 3, 2009, at the Wayback Machine, and some others (For example, Puerto Rican residents that are members of the U.S. military, See Heritage.orgArchived February 10, 2010, at the Wayback Machine ; and Puerto Rico residents who earned income from sources outside Puerto Rico, See pp 14–15.) also pay federal income taxes. In addition, because the cutoff point for income taxation is lower than that of the U.S. IRS code, and because the per-capita income in Puerto Rico is much lower than the average per-capita income on the mainland, more Puerto Rico residents pay income taxes to the local taxation authority than if the IRS code were applied to the island. This occurs because "the Commonwealth of Puerto Rico government has a wider set of responsibilities than do U.S. State and local governments" (See GAO.gov). As residents of Puerto Rico pay into Social Security, Puerto Ricans are eligible for Social Security benefits upon retirement, but are excluded from the Supplemental Security Income (SSI) (Commonwealth of Puerto Rico residents, unlike residents of the Commonwealth of the Northern Mariana Islands and residents of the 50 States, do not receive the SSI. See Socialsecurity.gov), and the island actually receives less than 15% of the Medicaid funding it would normally receive if it were a U.S. state. However, Medicare providers receive less-than-full state-like reimbursements for services rendered to beneficiaries in Puerto Rico, even though the latter paid fully into the system (See p 252).Archived 2011-05-11 at the Wayback Machine In general, "many federal social welfare programs have been extended to Puerto Rican (sic) residents, although usually with caps inferior to those allocated to the states." (The Louisiana Purchase and American Expansion: 1803–1898. By Sanford Levinson and Bartholomew H. Sparrow. New York: Rowman and Littlefield Publishers. 2005. Page 167. For a comprehensive coverage of federal programs made extensive to Puerto Rico see Richard Cappalli's Federal Aid to Puerto Rico (1970)). It has also been estimated (See Egleforum.org) that, because the population of the Island is greater than that of 50% of the States, if it were a state, Puerto Rico would have six to eight seats in the House, in addition to the two seats in the Senate.(See Eagleforum.org, CRF-USA.orgArchived 2009-06-10 at the Wayback Machine and Thomas.govArchived February 1, 2016, at the Wayback Machine [For the later, the official U.S. Congress database website, you will need to resubmit a query. The document in question is called "House Report 110-597 - Puerto Rico Democracy Act of 2007." These are the steps to follow: THOMAS.govArchived September 29, 2006, at the Wayback Machine > Committee Reports > 110 > drop down "Word/Phrase" and pick "Report Number" > type "597" next to Report Number. This will provide the document "House Report 110-597 - 2007", then from the Table of Contents choose "Background and need for legislation".). Another misconception is that the import/export taxes collected by the U.S. on products manufactured in Puerto Rico are all returned to the Puerto Rico Treasury. This is not the case. Such import/export taxes are returned only for rum products, and even then the US Treasury keeps a portion of those taxes (See the "House Report 110-597 - Puerto Rico Democracy Act of 2007" mentioned above.)
reuters.com
Contrary to common misconception, residents of Puerto Rico do pay U.S. federal taxes: customs taxes (which are subsequently returned to the Puerto Rico Treasury) (See Dept of the Interior, Office of Insular Affairs. DOI.gov)Archived 2012-06-10 at the Wayback Machine, import/export taxes (See Stanford.wellsphere.com)Archived 2010-04-01 at the Wayback Machine, federal commodity taxes (See Stanford.wellsphere.com)Archived April 1, 2010, at the Wayback Machine, social security taxes (See IRS.gov), etc. Residents pay federal payroll taxes, such as Social Security (See IRS.gov) and Medicare (See Reuters.com), as well as Commonwealth of Puerto Rico income taxes (See Puertorico-herald.org and HTRCPA.comArchived April 29, 2011, at the Wayback Machine). All federal employees (See Heritage.org)Archived 2010-02-10 at the Wayback Machine, those who do business with the federal government (See MCVPR.com)Archived May 15, 2011, at the Wayback Machine, Puerto Rico-based corporations that intend to send funds to the U.S. (See p. 9, line 1.)Archived September 3, 2009, at the Wayback Machine, and some others (For example, Puerto Rican residents that are members of the U.S. military, See Heritage.orgArchived February 10, 2010, at the Wayback Machine ; and Puerto Rico residents who earned income from sources outside Puerto Rico, See pp 14–15.) also pay federal income taxes. In addition, because the cutoff point for income taxation is lower than that of the U.S. IRS code, and because the per-capita income in Puerto Rico is much lower than the average per-capita income on the mainland, more Puerto Rico residents pay income taxes to the local taxation authority than if the IRS code were applied to the island. This occurs because "the Commonwealth of Puerto Rico government has a wider set of responsibilities than do U.S. State and local governments" (See GAO.gov). As residents of Puerto Rico pay into Social Security, Puerto Ricans are eligible for Social Security benefits upon retirement, but are excluded from the Supplemental Security Income (SSI) (Commonwealth of Puerto Rico residents, unlike residents of the Commonwealth of the Northern Mariana Islands and residents of the 50 States, do not receive the SSI. See Socialsecurity.gov), and the island actually receives less than 15% of the Medicaid funding it would normally receive if it were a U.S. state. However, Medicare providers receive less-than-full state-like reimbursements for services rendered to beneficiaries in Puerto Rico, even though the latter paid fully into the system (See p 252).Archived 2011-05-11 at the Wayback Machine In general, "many federal social welfare programs have been extended to Puerto Rican (sic) residents, although usually with caps inferior to those allocated to the states." (The Louisiana Purchase and American Expansion: 1803–1898. By Sanford Levinson and Bartholomew H. Sparrow. New York: Rowman and Littlefield Publishers. 2005. Page 167. For a comprehensive coverage of federal programs made extensive to Puerto Rico see Richard Cappalli's Federal Aid to Puerto Rico (1970)). It has also been estimated (See Egleforum.org) that, because the population of the Island is greater than that of 50% of the States, if it were a state, Puerto Rico would have six to eight seats in the House, in addition to the two seats in the Senate.(See Eagleforum.org, CRF-USA.orgArchived 2009-06-10 at the Wayback Machine and Thomas.govArchived February 1, 2016, at the Wayback Machine [For the later, the official U.S. Congress database website, you will need to resubmit a query. The document in question is called "House Report 110-597 - Puerto Rico Democracy Act of 2007." These are the steps to follow: THOMAS.govArchived September 29, 2006, at the Wayback Machine > Committee Reports > 110 > drop down "Word/Phrase" and pick "Report Number" > type "597" next to Report Number. This will provide the document "House Report 110-597 - 2007", then from the Table of Contents choose "Background and need for legislation".). Another misconception is that the import/export taxes collected by the U.S. on products manufactured in Puerto Rico are all returned to the Puerto Rico Treasury. This is not the case. Such import/export taxes are returned only for rum products, and even then the US Treasury keeps a portion of those taxes (See the "House Report 110-597 - Puerto Rico Democracy Act of 2007" mentioned above.)
Contrary to common misconception, residents of Puerto Rico do pay U.S. federal taxes: customs taxes (which are subsequently returned to the Puerto Rico Treasury) (See Dept of the Interior, Office of Insular Affairs. DOI.gov)Archived 2012-06-10 at the Wayback Machine, import/export taxes (See Stanford.wellsphere.com)Archived 2010-04-01 at the Wayback Machine, federal commodity taxes (See Stanford.wellsphere.com)Archived April 1, 2010, at the Wayback Machine, social security taxes (See IRS.gov), etc. Residents pay federal payroll taxes, such as Social Security (See IRS.gov) and Medicare (See Reuters.com), as well as Commonwealth of Puerto Rico income taxes (See Puertorico-herald.org and HTRCPA.comArchived April 29, 2011, at the Wayback Machine). All federal employees (See Heritage.org)Archived 2010-02-10 at the Wayback Machine, those who do business with the federal government (See MCVPR.com)Archived May 15, 2011, at the Wayback Machine, Puerto Rico-based corporations that intend to send funds to the U.S. (See p. 9, line 1.)Archived September 3, 2009, at the Wayback Machine, and some others (For example, Puerto Rican residents that are members of the U.S. military, See Heritage.orgArchived February 10, 2010, at the Wayback Machine ; and Puerto Rico residents who earned income from sources outside Puerto Rico, See pp 14–15.) also pay federal income taxes. In addition, because the cutoff point for income taxation is lower than that of the U.S. IRS code, and because the per-capita income in Puerto Rico is much lower than the average per-capita income on the mainland, more Puerto Rico residents pay income taxes to the local taxation authority than if the IRS code were applied to the island. This occurs because "the Commonwealth of Puerto Rico government has a wider set of responsibilities than do U.S. State and local governments" (See GAO.gov). As residents of Puerto Rico pay into Social Security, Puerto Ricans are eligible for Social Security benefits upon retirement, but are excluded from the Supplemental Security Income (SSI) (Commonwealth of Puerto Rico residents, unlike residents of the Commonwealth of the Northern Mariana Islands and residents of the 50 States, do not receive the SSI. See Socialsecurity.gov), and the island actually receives less than 15% of the Medicaid funding it would normally receive if it were a U.S. state. However, Medicare providers receive less-than-full state-like reimbursements for services rendered to beneficiaries in Puerto Rico, even though the latter paid fully into the system (See p 252).Archived 2011-05-11 at the Wayback Machine In general, "many federal social welfare programs have been extended to Puerto Rican (sic) residents, although usually with caps inferior to those allocated to the states." (The Louisiana Purchase and American Expansion: 1803–1898. By Sanford Levinson and Bartholomew H. Sparrow. New York: Rowman and Littlefield Publishers. 2005. Page 167. For a comprehensive coverage of federal programs made extensive to Puerto Rico see Richard Cappalli's Federal Aid to Puerto Rico (1970)). It has also been estimated (See Egleforum.org) that, because the population of the Island is greater than that of 50% of the States, if it were a state, Puerto Rico would have six to eight seats in the House, in addition to the two seats in the Senate.(See Eagleforum.org, CRF-USA.orgArchived 2009-06-10 at the Wayback Machine and Thomas.govArchived February 1, 2016, at the Wayback Machine [For the later, the official U.S. Congress database website, you will need to resubmit a query. The document in question is called "House Report 110-597 - Puerto Rico Democracy Act of 2007." These are the steps to follow: THOMAS.govArchived September 29, 2006, at the Wayback Machine > Committee Reports > 110 > drop down "Word/Phrase" and pick "Report Number" > type "597" next to Report Number. This will provide the document "House Report 110-597 - 2007", then from the Table of Contents choose "Background and need for legislation".). Another misconception is that the import/export taxes collected by the U.S. on products manufactured in Puerto Rico are all returned to the Puerto Rico Treasury. This is not the case. Such import/export taxes are returned only for rum products, and even then the US Treasury keeps a portion of those taxes (See the "House Report 110-597 - Puerto Rico Democracy Act of 2007" mentioned above.)
Contrary to common misconception, residents of Puerto Rico do pay U.S. federal taxes: customs taxes (which are subsequently returned to the Puerto Rico Treasury) (See Dept of the Interior, Office of Insular Affairs. DOI.gov)Archived 2012-06-10 at the Wayback Machine, import/export taxes (See Stanford.wellsphere.com)Archived 2010-04-01 at the Wayback Machine, federal commodity taxes (See Stanford.wellsphere.com)Archived April 1, 2010, at the Wayback Machine, social security taxes (See IRS.gov), etc. Residents pay federal payroll taxes, such as Social Security (See IRS.gov) and Medicare (See Reuters.com), as well as Commonwealth of Puerto Rico income taxes (See Puertorico-herald.org and HTRCPA.comArchived April 29, 2011, at the Wayback Machine). All federal employees (See Heritage.org)Archived 2010-02-10 at the Wayback Machine, those who do business with the federal government (See MCVPR.com)Archived May 15, 2011, at the Wayback Machine, Puerto Rico-based corporations that intend to send funds to the U.S. (See p. 9, line 1.)Archived September 3, 2009, at the Wayback Machine, and some others (For example, Puerto Rican residents that are members of the U.S. military, See Heritage.orgArchived February 10, 2010, at the Wayback Machine ; and Puerto Rico residents who earned income from sources outside Puerto Rico, See pp 14–15.) also pay federal income taxes. In addition, because the cutoff point for income taxation is lower than that of the U.S. IRS code, and because the per-capita income in Puerto Rico is much lower than the average per-capita income on the mainland, more Puerto Rico residents pay income taxes to the local taxation authority than if the IRS code were applied to the island. This occurs because "the Commonwealth of Puerto Rico government has a wider set of responsibilities than do U.S. State and local governments" (See GAO.gov). As residents of Puerto Rico pay into Social Security, Puerto Ricans are eligible for Social Security benefits upon retirement, but are excluded from the Supplemental Security Income (SSI) (Commonwealth of Puerto Rico residents, unlike residents of the Commonwealth of the Northern Mariana Islands and residents of the 50 States, do not receive the SSI. See Socialsecurity.gov), and the island actually receives less than 15% of the Medicaid funding it would normally receive if it were a U.S. state. However, Medicare providers receive less-than-full state-like reimbursements for services rendered to beneficiaries in Puerto Rico, even though the latter paid fully into the system (See p 252).Archived 2011-05-11 at the Wayback Machine In general, "many federal social welfare programs have been extended to Puerto Rican (sic) residents, although usually with caps inferior to those allocated to the states." (The Louisiana Purchase and American Expansion: 1803–1898. By Sanford Levinson and Bartholomew H. Sparrow. New York: Rowman and Littlefield Publishers. 2005. Page 167. For a comprehensive coverage of federal programs made extensive to Puerto Rico see Richard Cappalli's Federal Aid to Puerto Rico (1970)). It has also been estimated (See Egleforum.org) that, because the population of the Island is greater than that of 50% of the States, if it were a state, Puerto Rico would have six to eight seats in the House, in addition to the two seats in the Senate.(See Eagleforum.org, CRF-USA.orgArchived 2009-06-10 at the Wayback Machine and Thomas.govArchived February 1, 2016, at the Wayback Machine [For the later, the official U.S. Congress database website, you will need to resubmit a query. The document in question is called "House Report 110-597 - Puerto Rico Democracy Act of 2007." These are the steps to follow: THOMAS.govArchived September 29, 2006, at the Wayback Machine > Committee Reports > 110 > drop down "Word/Phrase" and pick "Report Number" > type "597" next to Report Number. This will provide the document "House Report 110-597 - 2007", then from the Table of Contents choose "Background and need for legislation".). Another misconception is that the import/export taxes collected by the U.S. on products manufactured in Puerto Rico are all returned to the Puerto Rico Treasury. This is not the case. Such import/export taxes are returned only for rum products, and even then the US Treasury keeps a portion of those taxes (See the "House Report 110-597 - Puerto Rico Democracy Act of 2007" mentioned above.)
Contrary to common misconception, residents of Puerto Rico do pay U.S. federal taxes: customs taxes (which are subsequently returned to the Puerto Rico Treasury) (See Dept of the Interior, Office of Insular Affairs. DOI.gov)Archived 2012-06-10 at the Wayback Machine, import/export taxes (See Stanford.wellsphere.com)Archived 2010-04-01 at the Wayback Machine, federal commodity taxes (See Stanford.wellsphere.com)Archived April 1, 2010, at the Wayback Machine, social security taxes (See IRS.gov), etc. Residents pay federal payroll taxes, such as Social Security (See IRS.gov) and Medicare (See Reuters.com), as well as Commonwealth of Puerto Rico income taxes (See Puertorico-herald.org and HTRCPA.comArchived April 29, 2011, at the Wayback Machine). All federal employees (See Heritage.org)Archived 2010-02-10 at the Wayback Machine, those who do business with the federal government (See MCVPR.com)Archived May 15, 2011, at the Wayback Machine, Puerto Rico-based corporations that intend to send funds to the U.S. (See p. 9, line 1.)Archived September 3, 2009, at the Wayback Machine, and some others (For example, Puerto Rican residents that are members of the U.S. military, See Heritage.orgArchived February 10, 2010, at the Wayback Machine ; and Puerto Rico residents who earned income from sources outside Puerto Rico, See pp 14–15.) also pay federal income taxes. In addition, because the cutoff point for income taxation is lower than that of the U.S. IRS code, and because the per-capita income in Puerto Rico is much lower than the average per-capita income on the mainland, more Puerto Rico residents pay income taxes to the local taxation authority than if the IRS code were applied to the island. This occurs because "the Commonwealth of Puerto Rico government has a wider set of responsibilities than do U.S. State and local governments" (See GAO.gov). As residents of Puerto Rico pay into Social Security, Puerto Ricans are eligible for Social Security benefits upon retirement, but are excluded from the Supplemental Security Income (SSI) (Commonwealth of Puerto Rico residents, unlike residents of the Commonwealth of the Northern Mariana Islands and residents of the 50 States, do not receive the SSI. See Socialsecurity.gov), and the island actually receives less than 15% of the Medicaid funding it would normally receive if it were a U.S. state. However, Medicare providers receive less-than-full state-like reimbursements for services rendered to beneficiaries in Puerto Rico, even though the latter paid fully into the system (See p 252).Archived 2011-05-11 at the Wayback Machine In general, "many federal social welfare programs have been extended to Puerto Rican (sic) residents, although usually with caps inferior to those allocated to the states." (The Louisiana Purchase and American Expansion: 1803–1898. By Sanford Levinson and Bartholomew H. Sparrow. New York: Rowman and Littlefield Publishers. 2005. Page 167. For a comprehensive coverage of federal programs made extensive to Puerto Rico see Richard Cappalli's Federal Aid to Puerto Rico (1970)). It has also been estimated (See Egleforum.org) that, because the population of the Island is greater than that of 50% of the States, if it were a state, Puerto Rico would have six to eight seats in the House, in addition to the two seats in the Senate.(See Eagleforum.org, CRF-USA.orgArchived 2009-06-10 at the Wayback Machine and Thomas.govArchived February 1, 2016, at the Wayback Machine [For the later, the official U.S. Congress database website, you will need to resubmit a query. The document in question is called "House Report 110-597 - Puerto Rico Democracy Act of 2007." These are the steps to follow: THOMAS.govArchived September 29, 2006, at the Wayback Machine > Committee Reports > 110 > drop down "Word/Phrase" and pick "Report Number" > type "597" next to Report Number. This will provide the document "House Report 110-597 - 2007", then from the Table of Contents choose "Background and need for legislation".). Another misconception is that the import/export taxes collected by the U.S. on products manufactured in Puerto Rico are all returned to the Puerto Rico Treasury. This is not the case. Such import/export taxes are returned only for rum products, and even then the US Treasury keeps a portion of those taxes (See the "House Report 110-597 - Puerto Rico Democracy Act of 2007" mentioned above.)
United States Government Printing Office, at Amendments to the Constitution of the United States of AmericaArchived 2008-02-05 at the Wayback Machine; see generally United States v. Thomas, 788 F.2d 1250 (7th Cir. 1986), cert. denied, 107 S.Ct. 187 (1986); Ficalora v. Commissioner, 751 F.2d 85, 85-1 U.S. Tax Cas. (CCH) ¶ 9103 (2d Cir. 1984); Sisk v. Commissioner, 791 F.2d 58, 86-1 U.S. Tax Cas. (CCH) ¶ 9433 (6th Cir. 1986); United States v. Sitka, 845 F.2d 43, 88-1 U.S. Tax Cas. (CCH) ¶ 9308 (2d Cir.), cert. denied, 488 U.S. 827 (1988); United States v. Stahl, 792 F.2d 1438, 86-2 U.S. Tax Cas. (CCH) ¶ 9518 (9th Cir. 1986), cert. denied, 107 S. Ct. 888 (1987); Brown v. Commissioner, 53 T.C.M. (CCH) 94, T.C. Memo 1987–78, CCH Dec. 43,696(M) (1987); Lysiak v. Commissioner, 816 F.2d 311, 87-1 U.S. Tax Cas. (CCH) ¶ 9296 (7th Cir. 1987); Miller v. United States, 868 F.2d 236, 89-1 U.S. Tax Cas. (CCH) ¶ 9184 (7th Cir. 1989); also, see generally Boris I. Bittker, Constitutional Limits on the Taxing Power of the Federal Government, The Tax Lawyer, Fall 1987, Vol. 41, No. 1, p. 3 (American Bar Ass'n).
Contrary to common misconception, residents of Puerto Rico do pay U.S. federal taxes: customs taxes (which are subsequently returned to the Puerto Rico Treasury) (See Dept of the Interior, Office of Insular Affairs. DOI.gov)Archived 2012-06-10 at the Wayback Machine, import/export taxes (See Stanford.wellsphere.com)Archived 2010-04-01 at the Wayback Machine, federal commodity taxes (See Stanford.wellsphere.com)Archived April 1, 2010, at the Wayback Machine, social security taxes (See IRS.gov), etc. Residents pay federal payroll taxes, such as Social Security (See IRS.gov) and Medicare (See Reuters.com), as well as Commonwealth of Puerto Rico income taxes (See Puertorico-herald.org and HTRCPA.comArchived April 29, 2011, at the Wayback Machine). All federal employees (See Heritage.org)Archived 2010-02-10 at the Wayback Machine, those who do business with the federal government (See MCVPR.com)Archived May 15, 2011, at the Wayback Machine, Puerto Rico-based corporations that intend to send funds to the U.S. (See p. 9, line 1.)Archived September 3, 2009, at the Wayback Machine, and some others (For example, Puerto Rican residents that are members of the U.S. military, See Heritage.orgArchived February 10, 2010, at the Wayback Machine ; and Puerto Rico residents who earned income from sources outside Puerto Rico, See pp 14–15.) also pay federal income taxes. In addition, because the cutoff point for income taxation is lower than that of the U.S. IRS code, and because the per-capita income in Puerto Rico is much lower than the average per-capita income on the mainland, more Puerto Rico residents pay income taxes to the local taxation authority than if the IRS code were applied to the island. This occurs because "the Commonwealth of Puerto Rico government has a wider set of responsibilities than do U.S. State and local governments" (See GAO.gov). As residents of Puerto Rico pay into Social Security, Puerto Ricans are eligible for Social Security benefits upon retirement, but are excluded from the Supplemental Security Income (SSI) (Commonwealth of Puerto Rico residents, unlike residents of the Commonwealth of the Northern Mariana Islands and residents of the 50 States, do not receive the SSI. See Socialsecurity.gov), and the island actually receives less than 15% of the Medicaid funding it would normally receive if it were a U.S. state. However, Medicare providers receive less-than-full state-like reimbursements for services rendered to beneficiaries in Puerto Rico, even though the latter paid fully into the system (See p 252).Archived 2011-05-11 at the Wayback Machine In general, "many federal social welfare programs have been extended to Puerto Rican (sic) residents, although usually with caps inferior to those allocated to the states." (The Louisiana Purchase and American Expansion: 1803–1898. By Sanford Levinson and Bartholomew H. Sparrow. New York: Rowman and Littlefield Publishers. 2005. Page 167. For a comprehensive coverage of federal programs made extensive to Puerto Rico see Richard Cappalli's Federal Aid to Puerto Rico (1970)). It has also been estimated (See Egleforum.org) that, because the population of the Island is greater than that of 50% of the States, if it were a state, Puerto Rico would have six to eight seats in the House, in addition to the two seats in the Senate.(See Eagleforum.org, CRF-USA.orgArchived 2009-06-10 at the Wayback Machine and Thomas.govArchived February 1, 2016, at the Wayback Machine [For the later, the official U.S. Congress database website, you will need to resubmit a query. The document in question is called "House Report 110-597 - Puerto Rico Democracy Act of 2007." These are the steps to follow: THOMAS.govArchived September 29, 2006, at the Wayback Machine > Committee Reports > 110 > drop down "Word/Phrase" and pick "Report Number" > type "597" next to Report Number. This will provide the document "House Report 110-597 - 2007", then from the Table of Contents choose "Background and need for legislation".). Another misconception is that the import/export taxes collected by the U.S. on products manufactured in Puerto Rico are all returned to the Puerto Rico Treasury. This is not the case. Such import/export taxes are returned only for rum products, and even then the US Treasury keeps a portion of those taxes (See the "House Report 110-597 - Puerto Rico Democracy Act of 2007" mentioned above.)
