In the 1750s and 1760s, there was a political slogan popular in America: “No taxation without representation.”
Americans at that time were British citizens. They paid taxes to England, but they had no representation in the Parliament, which was similar to the House and Senate in the United States today. When England passed taxes on sugar, tea, and other items which Americans had to pay, Americans objected to having such laws made by a government in which they had no voice.
The people of Puerto Rico are citizens of the United States, just as the American colonists were citizens of Britain.
Does Puerto Rico pay taxes?
Puerto Rico pays taxes to the United States, too. In 2011, Puerto Rico paid $3.3 billion in taxes to the U.S., about the same amount as Vermont. In 2016, the total was $3.6 billion. Sometimes Puerto Rico pays more than Vermont.
Some of the kinds of taxes paid by the people of Puerto Rico:
- Social Security taxes
- payroll taxes
- import taxes
- export taxes
- commodity taxes
Most people in Puerto Rico do not pay Federal income taxes. However, they do pay local income taxes, and in many cases these are higher than Federal income taxes would be. What’s more, nearly half of the people on the mainland do not pay income taxes. They may have to file, but tax credits and deductions mean that many people in the United States do not pay federal income taxes.
So we can see that the people of Puerto Rico, as a group, pay taxes just as other U.S. citizens do.
What about representation?
U.S. citizens living on the mainland are represented in the U.S. government by a president whom they elect, and by senators and congressional representatives whom they elect. These representatives have a voice in the making of laws that affect the daily lives of their constituents, because they are able to vote on those laws.
U.S. citizens living in Puerto Rico are represented by a single Resident Commissioner. The first Resident Commissioner, Federico Degetau y González, was elected more than a century ago and served from 1901 to 1905. He didn’t even have a chair to sit in while Congress was meeting, and he remarked that Puerto Rico had been better represented in Spain than in the U.S.
Degetau y González spent several years of his tenure fighting to be allowed to speak in Congress. Today’s Resident Commissioner can speak and can serve on committees, but cannot vote when her vote would make a difference in the outcome.
Just like the Colonial Americans of the 1700s, the people of Puerto Rico do not have adequate representation in the government that collects taxes from them. As a State, Puerto Rico will have the same level of representation as the people living in the 50 states.
It is time for Puerto Rico to become a state.
46 Responses
I want Puerto Rico to become our 51st state.
Yes!!!
Become a state or an independent country.
Puerto Rico doesn’t pay taxes like us citizens. Only federal employees have to file at the end of the year. You can’t have the benefits without paying the cost.
+1…many articles purposely comfound the issue saying yes the pay social security…so what…they lay that so they can get Medicare
Think you mean 3.3 million, not billion :). The corporations pay taxes on profits, but personal taxes ate limited to Medicare/Medicaid, which is mant times less than the social benefits they receive from the US government. They have been represented very well through funding for their education, government, and law enforcement. Perhaps the greatest injustice that they have endured, is the dependency we’ve encouraged by throwing dollars, instead of jobs at their economy.
Hello I am nick gero im a african american but alot of people call me nick ger I have moved to puerto rico and I think we should be the 51st state!
In Puerto Rico we pay the same percent of Social Security and Medicare, and have fewer benefits than mainland citizens. Medicare and Social Security are taxes too. Many people in Puerto Rico have to pay federal income taxes too. That is because they received payment from Federal Government or they are privately contracted to work from here to the states. There are more reason, but this two are enough to probe that here in Puerto Rico we have “Taxation without representation”.
So you would like to opt out of social security and Medicare? Fine. Most people are collecting more benefits than they paid in. They are not the same as regular taxes where you don’t get your money back ever. They are more like insurance for your age.
Actually, that is not true. In 1967 I made my first payments into the system. The value of those dollars were real in that day–a hamburger was 15 cents, the first house my wife and i bought for $12,400 (3 bedroom, 1.5 bath, approximately 1,000 Sq ft), brick. A comprilble house in the area I live would likele be $150,00, more than 10 times what I paid. (You do the math for the hambuger). The devaluation of the dollar over the decades would mean that my modest “contribution” would be 10-15 times the face value if adjusted for inflation.
Then, if you added a modest interest rate, then what I’ve paid in over my almost 60 years of employment would amount to a staggering pile of money. Maybe a good example to help you understand my point about interest I suggest you look at the interest you will pay on a 30 year home loan.
Third, if you die as a single person, what you paid in is a gift to social security. I don’t know when the change was made but now a surviving spouse can reap some increase in their benefits, but not the full amount.
[…] official languages of Puerto Rico (the U.S. does not have an official language). Puerto Ricans pay federal taxes. Puerto Ricans are eligible to play Powerball, just as they are eligible to serve in the U.S. armed […]
Puerto Ricans have served in every major
war with Honor.Yet we are citizens that can not vote.Humm something wrong.
According to rumors on the mainland, you can vote. What is hard to find, is which party y’all voted for.
Puerto Rico residents cannot vote in U.S. presidential elections. Watch out for those rumors…
If they moved to Mexico they could, even have an absentee ballot sent to them.
How are some of the local taxes greater than federal income taxes? Is their top income rate 4%?
In past elections Puerto Rico chose to remian a territory. They have the benefit of receiving US protection and being able to move to the US. Also, the social security taxes and the payroll taxes are given back to Puerta Rican retirees, and those are probably the largest portion of taxes.
Puerta Ricans conduct so much business off the books that they would be parylized if they had to pay their fair share of income tax.
You’re spot-on target, there Jeff Creedle! This article is oversimplifies and rationalizes the plight of Puerto Ricans! They enjoy all the advantages of being US citizens without paying Federal Taxes for the privilege.
They paid $3.3 billion in federal taxes. What protection? 20-30% are still without power.
Only $1000 per person, including business, payroll, and corporate taxes? That includes US gov. workers who pay US taxes. They still get Social Security and Medicare? Holy Cow, all the benefits and non of the costs!!! People in the mainland would love to pay that.
I knew a fellow sailor when I was in the Navy who was from Puerto Rico and his family still lived there. He said that
every year during the election, it is put out to the people to vote on whether or not they want to become a state and
every year it is voted down. So it seems that the people who want to become a state are a minority.
This is actually not true. There have been a number of plebiscites over the years, but they have not been held every year. Read about the ones up to 2012 here: http://www.pr51st.com/none-of-the-above-the-strange-history-of-puerto-ricos-status-votes/
In June of this year, another vote was held, and statehood received 97% of the votes.
That’s because they are bankrupt now and want us to bail them out. We should just emancipate the place and be done with it, or convert it into a huge military installation. More Puerto Ricans live here than in Puerto Rico. Doesn’t sound lime such a great place to me, or they wouldn’t leave. No industry, commerce or real infrastructure. More liability than anything.
Wow, that is such a persuasive argument. I am really blown away by the logic. So citizens left the original 13 states and moved into the territories, but there were still more citizens in the original 13 states than the territories, and that meant when the territories were ready for statehood it should have been denied because having less people than the whole U.S. must have meant the territories were not such a great place. If I can follow this amazing logic, all travel and migration between territories and states means territories are bad places and we should have denied statehood to the 32 territories that became states. Gee, how come no one ever explained that before? And since Congress created the local government that has gone bankrupt, and gave that local government the power to tax the citizens, and that revenue is used by the local government to act on behalf of Congress and provide government services as a surrogate for Congress, now that the local government has gone bankrupt, is restoring sound fiscal and budget practices bailing out the citizens or is it bailing out Congress for allowing territorial government it created to spend beyond its means? Speaking of bailing out, what about the 18,000 U.S. citizens who were drafted to bail out the U.S. in WWI, or the tens of thousands drafted to serve in WWII, Korea and Vietnam, or the volunteers who served in Iraq and Afghanistan at a rate higher than most states? And what about the economic impact of federal tax shelters for big U.S. companies who evaded billions in taxes each year for 30 years and profited way out of proportion to local beenfits, while making it harder for small businesses without tax shelters to compete and succeed? Who was getting bailed out in that scam? Answer: The politicians in Congress and its surrogate local government who were getting campaign donations from companies exploiting “job creation” tax evasion laws.
Mr. Hills thank you for putting much better logic into this dialogue. Mainland Americans don’t seem to have all the facts when it comes to PR. Congress set up PR’s government since it was surrendered to the U.S after the war with Spain. So the island has a long relationship with the U.S. The U.S. has used the island for military strategic purposes for a long time. Like you mentioned the U.S.A. needed more men in the war, so what better place to get instant recruits by making PR’s citizens. So it’s easy for some non knowledgeable Americans to think that Puerto Ricans are just using the United States and taking money from them. When in fact the US made and gave PR concessions for allowing them to use the island and its people I gather. The islands demise has been slowly geminating since Bill Clinton remove the corporate tax incentives for a lot of American companies that had factories and businesses on the island. Due to congress taking away the corporate incentives, major corporation left. This left the island with high unemployment and no way of generating taxes, since most people just left the island back to the USA for jobs. The municipalities and infrastructure collapsed. Not to mention mismanagement or lack of and corrupt governance. I sincerely hope that the island can get back on its feet, the two storms did not help, along with the bond fiasco. PR was taken advantage of by some hedged fund investment companies. So despite all this I think if the islanders vote for statehood congress should give it to them.
[…] in its own national government. In other words, the Revolutionary War rally cry of “taxation without representation” is everyday life in Puerto […]
[…] in its own national government. In other words, the Revolutionary War rally cry of “taxation without representation” is everyday life in Puerto […]
Puerto Rico does not pay personal federal income tax to the United States on their Puerto Rican income, yet they receive many benefits from the United States. Yes, they do pay a Portion of their Social Security, Medicare/Medicaid taxes and they are also entitled to receive those benefits as is any other citizen in a state of the United States of American.
It is said that although Puerto Rico voted this year to become a state, that it will never happen because President Trump will never approve because of Puerto Rico’s democrat (socialist- in my opinion) voting and mostly Spanish speaking population. Hmmmm, if this is the reason- why didn’t President Obama wave his magic wand and make them a state in 2012 when they also voted for statehood? Could it be because it takes more than their desire and the ok by the President of the United States? Could it be because there are regulations such as they must be financially solvent and agree to abide by our constitution and laws to be considered for statehood? Puerto Rico does not fill either of those.
Actually, Congress admits new states, and there are no requirements to be solvent. It is required that a territory have a constitution approved by Congress in order to become a state. Puerto Rico’s constitution was approved in 1952.
you don’t pay federal income tax, therefore you will have limited representation compared to a mainland citizen. want to change that? vote to become a real state and pay full taxes, then you’ll be represented fairly
Puerto Rico pays Social Security and payroll taxes, as well as income taxes on income from the U.S. states. Voters chose statehood in 2017 and in 2012.
We all pay Soc Sec and payroll taxes as well as state and local taxes. PR Residents do not pay Federal Taxes on their PR Income.. only income they derive from US sources. They are getting the benefits of protection from the US without paying for them like the rest of the US.. They want voting rights then they should become a legal state and pay their fair share of Federal Taxes!
They fight with us in war. They are not paying for our protection. Plus we charge their citizens roughly 20% for the same goods here in the states. Must of their goods come from the states, btw
The Puerto Rican governor Carmen Yulin Cruz’s words of criticism against the Trump administration, are not only disgraceful; but a direct insult to the millions of Americans who voted him in office, as well as a slap in the face for the military and FEMA workers helping with the disaster– I am disgusted and will never visit Puerto Rico because of it, and, believe all Puerto Rican’s are the same as their elected governor UNGRATEFUL! GROSS! UNAMERICAN……shame on all of you.
The author would like to equate paying “local” taxes and “social security” tax as if it were a federal contribution and it isn’t.
I agree with Maria that Puerto Rico’s governor criticism is not warranted. Somebody should inform this dummy that if you don’t contribute to providing FEDERAL TAXES then you shouldn’t be receiving the benefits paid for by FEDERAL TAXES. The failed leadership if Puerto Rico and made it into a bankrupt s-hole. As I tell my children, you can have a say in the decision making when you step up and pay your own way. The same goes for the children managing Puerto Rico.
What does the US “mainland” have to gain by adding PR to the Union? Not much. Before Maria, it’s crippling debt would have been absorbed by the US govt and passed along to the taxpayers. Now with Maria, they’re relying on the US more than ever because they can’t even manage themselves, let alone a budget of any kind. I can’t imagine what would happen if PR were an independent nation, they wouldn’t be able to scrap together a fraction of what the US govt is doing for them. Any chance we’ll see all of the “aid” reimbursed? Not in our life time.
Just a reminder that federal funds distributed for emergency disaster response (to states or territories) never gets reimbursed.
“Most people in Puerto Rico do not pay Federal income taxes. However, they do pay local income taxes,”
Who gives a crap! Local taxes stay local. I as an American pay all the same taxes INCLUDING FEDERAL. “Most people in Puerto Rico do not pay Federal income taxes” Well the author would like you to believe this is the same and it isn’t. What Puerto Rico actually wants is representation without taxation. To be more specific they want FEDERAL DOLLARS where little to none are contributed. The local taxes paid are kept local and spent local. America NEVER sees a penny of those. Social Security taxes are collected and paid back directly accordingly to earnings. Lets be honest, Puerto Rico is a bankrupt s-hole and only wants to formally become a state for more handouts and nothing more. The United States need less freeloaders and not more. Want to become the 51st state then pay federal taxes like us Americans who actually work and contribute.
Kind Sir, I would like to add: Since my birth in 1975, I’ve known many Puerto Ricans who have become employed as Public Servants in State and Federal Judicial Systems, Departmental Offices (including Affirmative Action/Civil Service) and so many other roles. WHile my knowlege of such individuals was one of limited exposure in the states of NY, NJ, MA, and PA – that tells me “it’s just a sample” of other PR roles throughout the United States.
According to Wikipedia Puerto Rico receives about 21 billion dollars from the US federal government annually. But according to this article it only pays about 3.3 billion in Federal taxes annually. The state of Michigan receives 17.7 billion and pays 77 billion. My question would be is there really taxation without representation. Or does Puerto Rico just want the benifits without taxation.
Puerto Rico pays 20% more for the exact same goods we buy in the states, most of their goods coming from the US, which is like 80%..
‘Bona fide’ residents of Puerto Rico who do pay federal taxes either because they are currently serving in (or are retired from) the armed forces of the United States, or because they are currently working (or are retired from) the federal government, have to do so according to the terms of Section 933 of the Internal Revenue Code and under less than equal conditions.
What all these people who say “pay federal income taxes if you want to be a state” don’t seem to understand is that PR is asking to become a state….and consequently pay federal income taxes like any other resident of a state. What PR pays now in Federal income tax is irrelevant unless they are asking to be some special version of a state…..which they are not.
Stop calling the home of fellow Amerians a “shit hole”. We are all on the same team, I give no Fu*ks who you vote for, we’re all Americans.
Isla del Encanto should be changed to: Ten tu pastel y cómelo también.
The island motto should be: “You conquered us, now take care of us; forever.”
https://www.nbcnews.com/news/latino/puerto-rico-formally-exits-bankruptcy-largest-public-debt-restructurin-rcna20054
I wonder how many of us here in the US are on the hook for this debacle?
Viewing this page today as I have in the past, and continuing to see that Puerto Rico and it’s Residents remain, seemingly, in limbo of adequate Government representation and ability to provide their voice/opinion whilst the inaction of a divided Government stifles the growth and promise of Puerto Rico. I remember stories of my Father’s USAF days and being Stationed on PR (he passed in 2021) and he, as a Veteran, wanted to see the US Gov’t do “What is Right” by the Puerto Rican People by providing them with the equality and equity that they have been “starved” of for so long!
In 1997, I elected (while my Grandfather was still living) to apply with the Italian Consulate for dual citizenship and between 2007 and 2021, I watched as I became the sole survivor of my US lineage.. While I still return to visit friends occassionally, I defected in 2022 after my Fathers Estate was settled. IF Citizenship was something that could be given to those WORTHY of it, my goodness, I can’t think of a more worthy group of people who have endured weather events destroying parts of Puerto Rico requiring rebuilding and also have contributed SO MUCH to benefit the United States, as whole.
I EMPHATICALLY IMPLORE ANY/ALL US GOVERNMENT OFFICIALS TO BRING AN END TO THIS INJUSTICE AND EMBRACE PUERTO RICO, THEIR PEOPLE, AND AT THE SAME TIME, PROVIDE AN ACCOUNT OF THE WAYS THEY’VE INFLUENCED POSITIVE CHANGES WITHIN THE US GOVERNMENTAL STRUCTURE VIA THEIR WORK, CONTRIBUTIONS, IDEAS, AND SUGGESTIONS AND THREAT/GIVE THEM THE SAME RESPECT THEY’VE ALWAYS PROVIDED TO THE UNITED STATES. END THE INEQUALITY, INJUSTICE, AND INEQUITIES BY KEEPING THEM AS “STIFLED CITIZENS”. (Archie Bunker hasn’t told Edith to Stifle in over 40 years.. . Why is the US doing this to these people?)
Puerto Rican people that have influenced my life and enriched my soul: Rosalina Bosques – New York State Dept of Civil Service – Affirmative Action (1980 -2000); Elia Christensen NYS Dept. of Civil Service 1978 – 2000; Luz Allende – NYS Dept of Transportation – Commissioner during Gov. George Pataki; Luz Molina – Graphic Artist for both NYS Departments of Civil Service (under Gov. Mario Cuomo) and Transportation (under Gov. George Pataki).. While there are MANY others – these individuals remained pivotal role models (and co-workers of my Mother) while I was in Elementary, Middle, and High School and even College – I studied with many of their children. Rosalina was a subordinate to Elia and my mother a subordinate to Rosalina – during my middle school years, we changed residences within Albany County, NY (the NY’s Capital District area) and unknowingly, moved three houses down from Rosalina. Rosalina would bring me to church dinners and, on three occassions, paid my way to accompany her to visit her family in Puerto Rico. Sadly, while attending the University of Minnesota, Rosalina passed away from Brain Cancer – I never had a chance to say “Goodbye”. That summer, I returned to NY, her nephew Padiel from PR arrived in NY, and along with both of my parents, we contacted her Church Family to donate her belongings to so that we could list her home “For Sale” with the money going to her Family that I met in PR on those 3 visits.
I’m 48 now, prior to 2022, returned to school to attain my BSW, and have been working with victims of Gender-Based Crimes and LGBT youth of Orphan Populations in countries where their Leaders condone Femicide and punish suspected homosexuals with persecution/incarceration – shifting from working with individuals with Cognitive Disabilities and Traumatic Brain Injuries for over 25 years. I operate out of my (now) primary residence in Sorrento & Foggia, Italia.
One thing I learned in 2021 is that being “alone” in a country “sucks”. But I think that whether alone or in a group, having a Government silence you while calling you Citizens “sucks a whole lot more!” I’m so sorry for the years of Governmental inflicted disparities continuing into the 21st Century. It’s truly inexcusable!
(respond to me, let me hear your voice, don’t be silent). Respectfully, Giovanni
I like to close with a “famous quote” which hopefully is inspiring or meaningful to at least one person – and while Diana – Princess of Wales offers many of my favourites – I believe something “different is more appropriate.
“WHEN WE STAND TOGETHER,
WE ALL WIN,
WE ALL GROW,
WE ALL GET HEARD,
AND WE ALL BECOME MORE POWERFUL!
~Anonymous