Friday, September 11, 2020 - Kenneth Rivera's column for El Nuevo Día
On September 9, the federal government filed a petition for certiorari with the U.S. Supreme Court in the case of US v. Vaello-Madero. The Vaello case involves an individual who was living in the United States and receiving Supplemental Security Income (SSI) benefits. SSI is a program that provides benefits to people who are over 65, blind or have special needs. It was created in 1972 to replace a program known as Aid to the Aged, Blind and Disabled (AABD). When SSI was adopted, it was extended to all 50 states, the District of Columbia and only one of the possessions, the Mariana Islands. Puerto Rico continued to use AABD, which is not as good, since fewer benefits are received than under SSI and the eligibility requirements are stricter.
When Vaello moved to Puerto Rico, his SSI eligibility was revoked and he was asked to return the SSI benefits he had earned since moving to Puerto Rico. Vaello sued and claimed that the change in treatment was unconstitutional because it violated the equal protection of the laws under the Due Process Clause. The federal government countered with previously used arguments, claiming that people in Puerto Rico do not pay federal taxes, that granting such benefits may be too costly for the United States, and that such an influx of federal funds could dislocate the local economy. Vaello prevailed in the Federal District Court and the federal Circuit Court of Appeals. So the federal government turned to the federal Supreme Court for a final request for judicial review. We should note that this application is discretionary in nature.
It disturbs a bit the argument that we don't pay federal taxes. In 2019 we paid $1,800,000 in federal taxes. While the bulk was in Social Security, a substantial portion was in income taxes. Moreover, the decision to treat Puerto Rico as a separate taxing jurisdiction from the United States was adopted by the federal Congress in the Internal Revenue Code of 1921 to help U.S. businesses compete with foreign companies. Such tax treatment is still in effect, and it does not seem fair to penalize us for a decision that was not originally adopted by us.
According to federal government estimates, extending SSI to Puerto Rico residents would represent an annual increase in benefits of $1.8 billion to $2.4 billion. However, the possible extension of benefits does not end there. Last August 3, using Vaello as a precedent, the case of Peña-Martínez v. US Department of Health was decided. This case not only extends SSI benefits to Puerto Rico but also recognizes that parity should be granted in food funds and in a drug coverage program. Including Puerto Rico in these programs could result in an additional $900 million increase in benefits. The case provided for an injunction ordering the extension of such benefits to all residents of Puerto Rico 60 days after the decision. Finally, there is another case filed, Consejo de Salud v. US, involving other Medicaid and Medicare benefits, which could represent an additional $2 billion in benefits.
Being a jurisdiction with such a high poverty level and in the face of our current economic situation, access to these funds could provide a respite for both our residents and our economic environment.