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I don't see anything in the article mentioning a huge factor in Puerto Rico's poverty, the Jones Act. It requires all goods that Puerto Rico buys be transporte
by WillyOnWheels 10y ago
I don't see anything in the article mentioning a huge factor in Puerto Rico's poverty, the Jones Act.
It requires all goods that Puerto Rico buys be transported on an American made ship(as in built in an American shipyard), staffed with an American crew, jacking up prices.
It causes a crazy situtation where Puerto Rican company will ship their goods to the mainland, and THEN ship them back to the island, so that Puerto Ricans can buy them.
Puerto Ricans don't have decent representation in the national government, so they have no hope of getting it repealed.
Shipping companies LOVE the Jones act, Puerto Ricans hate it
http://www.businessinsider.com/r-us-shippers-push-back-in-battle-over-puerto-rico-import-costs-2015-7 http://www.businessinsider.com/r-us-shippers-push-back-in-ba...
"The report found that the price of imports from U.S. states was at least double that in neighboring islands like the U.S. Virgin Island, which is not covered by the act."
http://www.fundacionlibertadpr.org/single-post/2016/09/14/The-Jones-Act-and-Puerto-Rico%E2%80%99s-Economy http://www.fundacionlibertadpr.org/single-post/2016/09/14/Th...
Richard Wolff interviews Professor Ian Seda of John Jay College on the legacy of colonialism and the Jones Act in Puerto Rico:
http://www.democracyatwork.info/eu_puerto_rico_s_crisis_is_systemic http://www.democracyatwork.info/eu_puerto_rico_s_crisis_is_s...
- yummyfajitas 10y agoPuerto Ricans have had numerous opportunities to change their situation, most recently in 2012. The results were ambiguous. https://en.wikipedia.org/wiki/Puerto_Rican_status_referendum,_2012 https://en.wikipedia.org/wiki/Puerto_Rican_status_referendum... Puerto Rico actually has a pretty good deal - no federal income taxes. I'd happily give up my right to vote for the same benefit.
- areyousure 10y agoIf Puerto Rico acquired statehood, then the Jones Act (in this case, the "Merchant Marine Act of 1920") would still apply to them and still jack up prices. That's the case in Hawaii. (This comment thread is complicated a bit because the "Jones Act of Puerto Rico" -- the Jones–Shafroth Act -- is different from the Merchant Marine Act, also called the Jones Act.)
- amorphid 10y agoCan I move from California to Puerto Rico and stop paying federal income tax?
- hiphipjorge 10y agoAbsolutely.
- true_religion 10y agoWait? This is true in all cases? I thought the US government required you to pay income taxes after a certain income point even if you were in foreign countries. Why would Puerto Rico, which is part of the US itself, be an exception?
- vinay427 10y agoBecause foreign countries are not explicitly exempted, while PR is due to past agreements. Note that you have to live there for a good amount of the tax year to qualify, which is fairly typical.