Site icon Foundation For Poverty/ Child Poverty

The Truth About Federal Taxes In Puerto Rico

One of the most common arguments for denying equality to U.S. citizens residing in Puerto Rico is that Puerto Rico does not pay taxes to the federal government. This argument is totally false. U.S. citizens residing in Puerto Rico do pay federal taxes. These taxes include payroll taxes for unemployment insurance, social security tax and medicare, among others. In addition, every U.S. citizen resident in Puerto Rico who receives income from the federal government or sources of investment originating in any state in the nation must file an income tax return with the federal government.

In 2014, over $3 billion in federal taxes were remitted from Puerto Rico to the federal government's coffers. Since 1999, U.S. citizens residing in Puerto Rico pay an average of nearly $4 billion in federal taxes.

The most striking fact about the payment of federal taxes in Puerto Rico is that 93% of the taxes that are remitted to the federal government come from individuals. In other words, the economic burden of federal taxes falls almost entirely on the shoulders of U.S. citizens residing in Puerto Rico, not corporations.

It is not fair that U.S. citizens residing in Puerto Rico have to pay over $3 billion annually in federal taxes without receiving the full benefits of their U.S. citizenship. U.S. citizens residing in Puerto Rico are being penalized simply for living in Puerto Rico. It is time that their rights and equality as citizens of the United States be recognized.

Exit mobile version