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Not entirely accurate. At least some Puerto Ricans in PR pay federal income tax.

If a PR resident has income from sources outside PR, then that resident must file a U.S. tax return based on that income.

In some cases a PR resident may need to file a U.S. return to report self-employment income and pay SE tax.

To illustrate the general murkiness regarding the territories and U.S. taxation, I'll note that the IRS classifies PR taxation as an international issue rather than a domestic one.

Quote: rxwine

You think we should have territories without obligations? It's a two-way street. They don't get representation in congress, and they get less federal funds than states. They would actually need more federal funds if they were a state. So it would be even more MONEY to them. Federal funding programs would automatically apply to them when it goes to states.

I know it will be costly to add them as a state. They have been pseudo Americans for decades. Let them be full Americans, or not American at all. I’m ok with either result. Let the people of PR decide.

In general, I am against the concept of ‘territories’. Let them have full citizenship rights, or let them be independent.

Quote: Altstates93

Not entirely accurate. At least some Puerto Ricans in PR pay federal income tax.

If a PR resident has income from sources outside PR, then that resident must file a U.S. tax return based on that income.

In some cases a PR resident may need to file a U.S. return to report self-employment income and pay SE tax.

To illustrate the general murkiness regarding the territories and U.S. taxation, I'll note that the IRS classifies PR taxation as an international issue rather than a domestic one.

Correct. My point was that Jose Q Publico, the manager of the hotel we stayed at, does not pay US federal income taxes. The owner of a multinational corporation based in Puerto Rico does pay federal taxes on the overseas earned moolah. The vast majority of Puerto Ricans pay no US federal income tax.

Quote: SOOPOO

I know it will be costly to add them as a state. They have been pseudo Americans for decades. Let them be full Americans, or not American at all. I’m ok with either result. Let the people of PR decide.

In general, I am against the concept of ‘territories’. Let them have full citizenship rights, or let them be independent.

Give them 2 Senators and a House rep

From Wikipedia
Puerto Rico residents pay more in federal income taxes every year than do residents of six U.S. states: "From 1998 up until 2006, when Puerto Rico was hit by its present economic recession, Puerto Rico consistently contributed more than $4 billion annually in federal taxes and impositions into the national fisc." This was more that the IRS collected from taxpayers in six States of the Union: Vermont, Wyoming, South Dakota, North Dakota, Montana, and Alaska, as well as the Northern Mariana Islands.[17][18]

Quote: SOOPOO

Correct. My point was that Jose Q Publico, the manager of the hotel we stayed at, does not pay US federal income taxes. The owner of a multinational corporation based in Puerto Rico does pay federal taxes on the overseas earned moolah. The vast majority of Puerto Ricans pay no US federal income tax.

Why should we care more about that than Buffet's example of a secretary paying more taxes than the top earners here?

Quote: rxwine

Why should we care more about that than Buffet's example of a secretary paying more taxes than the top earners here?

Buffet’s example is bogus.

Quote: AZDuffman

Buffet’s example is bogus.

I'm sure he'll call you for advice. How old do you expect to be when bitcoin hits 720k. An Octogenarian?

Quote: rxwine

I'm sure he'll call you for advice. How old do you expect to be when bitcoin hits 720k. An Octogenarian?

My advice to him is simple. Quit being a hypocrite. If you (he) want to pay more taxes then quit structuring your pay to minimize taxes. Or just do like Trump and voluntarily pay more even if not 100% of POTUS salary like Trump did.

I figure bitcoin hits there around 2030. I will not live until 80.

Quote: AZDuffman

My advice to him is simple. Quit being a hypocrite. If you (he) want to pay more taxes then quit structuring your pay to minimize taxes. Or just do like Trump and voluntarily pay more even if not 100% of POTUS salary like Trump did.

I figure bitcoin hits there around 2030. I will not live until 80.

Then I suggest the same to SOOPOO. If he wants more taxes paid, he can pay them himself.

Quote: rxwine

Why should we care more about that than Buffet's example of a secretary paying more taxes than the top earners here?

Perpetrating the Big Lie. Secretaries do NOT pay less than top earners here. You may find individual years were a billionaire has little ‘income’ but still has dividend and bond interest that is taxed at far higher dollar figures than any ‘secretary’. Even the worst example, TRUMP, intentionally leaked the one return where he paid what, $34,000,000 in taxes? What I think you are referring to is the sum of FICA, which (theoretically) is not a tax, but a contribution, and the secretary’s federal tax. Then divide it by her overall income and come up with a percentage. And find a billionaire who only had capital gains which I think is taxed at 20%? Then say the secretary paid 30% and the billionaire only 20%.

What is musk going to pay this year in taxes? I’ll bet you it is many billions. Enough to equal tens of thousands of secretaries.