Puerto Rico Creates Tax Shelters in Appeal to the Rich
Sunshine, rum, crystal clear water, and low taxes. That’s the millionaire paradise that is Puerto Rico. In an attempt to draw financial stimulus to the island, efforts have been made in reaching out to not just millionaires, but billionaires as well. They are currently advertising capital gains tax rates ranging from ten to zero percent.
A major tax break is a powerful pull for America’s wealthiest. They have to consider it when thinking about where they will live and how they will invest. Puerto Rico wants to be the ideal tax haven and ideal place to live as well. Americans don’t even have to give up citizenship to reap the benefits of the new laws enacted by Puerto Rico. Instead, all they have to do is live there 183 days of the year and hopefully spend their money to boost the economy. Puerto Rico hopes that the boost will be enough to save the economy, as it was just downgraded by Moody’s as a result of its terrible pension fund, expected to run out by 2014.
This latest development is no different than the wealthy running to Switzerland or people finding out how Apple pays ridiculously low taxes by finding loopholes in the code. I don’t approve of the unpatriotic move to avoid paying Uncle Sam, but I’m not being taxed six figures a year. So I’m just going to throw up my hands, applaud the cleverness of the tax experts, and hope Puerto Rico is saved so I can keep daydreaming about visiting it one day.