Puerto Rico $70 billion in debt

Hesher said:
https://www.policygenius.com/blog/puerto-rico-tax-savings/
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The tax holiday excuse won't wash if that's what you're implying, unless you can show that the residency requirement is not enforced.

As I have shown, a huge number of Puerto Ricans are mired in poverty. I doubt they can afford to jet back and forth to gain a tax break.


Puerto Ricans with means and education are fleeing for the mainland. The island has lost some 440,000 people in the past decade, with about 1,200 decamping every week.

With growing debt and a shrinking number of taxpayers, the island appears trapped in an economic death spiral. Those who stay face ever-higher bills: The sales tax rose 7 to 11.5 percent in 2016 — the highest in the country — and water and electricity rates have spiked. The foreclosure rate is soaring. People are literally leaving their homes empty with the keys in the house.
 
For decades, Puerto Rico issued bonds to cover budget shortfalls, and investors snapped them up because the bonds are exempt from federal, state, and local taxes in all 50 states.

Then, in 1996 the territory hit an economic crossroads.

Congress ended hefty tax breaks for U.S. manufacturers operating in Puerto Rico, and American firms began shuttering their operations on the island, causing the economy to slump.

Instead of restructuring its economy, Puerto Rico doubled its debt over the next 10 years, and Wall Street firms made nearly $1 billion off the fees.

Those bond sales let the territory's bloated government — which employs a quarter of the workforce — meet its budgets without laying people off. But the economy remained stagnant, and the government was soon overwhelmed by its vast debt obligations.

It's worth noting that this happened under DEMOCRATS.


http://theweek.com/articles/614667/puerto-rico-crisis-explained
 
Right said:
The US has assets to sell: western land.
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Would you believe that is just one of the reasons we get the credit worldwide that we do? Our government has put all of our properties, your property, our national assets and all of our future earnings as collateral.
 
Sailor said:
Would you believe that is just one of the reasons we get the credit worldwide that we do? Our government has put all of our properties, your property, our national assets and all of our future earnings as collateral.
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That's how loans work, except in this case, the exact deed of the property isn't public knowledge.

FedCo long ago sold off the gold in Fort Knox. There's very little in there now, if any.
 
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