4 ms·
Actually, only a small percentage of Puerto Rico's pay US federal income tax. Income earned on the island is essentially exempt unless it's from working for the
by danielvf 3y ago
Actually, only a small percentage of Puerto Rico's pay US federal income tax. Income earned on the island is essentially exempt unless it's from working for the US government. Here's an IRS note on the topic:
https://www.irs.gov/taxtopics/tc901 https://www.irs.gov/taxtopics/tc901
"If you're a bona fide resident of Puerto Rico during the entire tax year, you generally aren't required to file a U.S. federal income tax return..."
I'm having a hard time finding hard data, but the last number I could find, from 2010, showed the island paying $20 million total in individual federal income taxes, on a population of 3.7 million.
- deleted 3y ago[deleted]
- HWR_14 3y agoPR has been dealing with a shrinking GDP since 2004. In 2010 their per capita income was just over 2/3 of Mississippi's. And the exemption is if you are getting money from anywhere stateside. US government obviously qualifies, but so do a lot of other cases.