The Truth About Millionaires And Reduced Taxes

By Myrtle Cash


One of the things reported in the news since year is Puerto Rico, which has been steadily touting itself as a tax haven for the rich and for corporations. This is largely due to the unique nature of their capital gains, as well as their corporate and income taxes. Also notable are their sales taxes and the policies that govern it. The Puerto Rico reduced taxes regulations are definitely factors that will ensure the state remain in the spotlight for some time.

The island has started a campaign since the start of the year with the purpose of the promotion of tax incentives. These tax incentives took place a little over a year ago and a lot of assets, including private schools, beaches and even bargain costs have been marketed. All of this is a sincere effort to bring in wealthy business executives.

A few millionaires that are under the radar have already made the move to relocate. Since then, reportedly forty others have followed their lead, most of them from the US. Majority of these new residents came from smaller financial firms as opposed to large corporations.

The savings on tax are capable of adding up to six figures, at least each year. The person who made this claim was Barry Breeman, who coincidentally, was making plans to move to Puerto Rico together with his wife. He also happens to be a co founder of the Caribbean Property Group, which is a real estate investment firm based out in New York and has some substantial holdings on Puerto Rico.

In addition to millionaires, billionaires are also included in the list of people the government was to reach out to. Specifically, John A. Paulson, who has been reported to be considering the move or at least he did, at one point. As a hedge fund manager, Paulson is the type of person that Puerto Rico wants to attract.

Real estate brokers and government officials need wealthy mainland Americans such as Paulson to elevate the island. This elevation will inevitably lead to comparisons to countries such as Ireland or Singapore, who are tax havens in their own right. A perk that Americans can avail of in Puerto Rico and not anywhere else is the retention of their citizenship even after being residents.

For someone to even qualify as a legal resident, one must live in the island for at least one hundred and eighty three days out the year. The wealthy would have no trouble doing that. Perhaps living in their private yachts for a hundred and eighty three days can be considered a vacation for them.

The USA may consider Puerto Rico as a commonwealth, but in terms of taxes they are treated quite differently. Most people there are not paying federal income tax, except for federal employees. This practice is quite different from most states.

The plan involving Puerto Rico reduced taxes and the inclusion of wealthy financiers is a very vital one, in the end. Because of the years the place spent suffering from a recession, the economy is in a very rough shape. The unemployment rate has gone beyond thirteen percent, which is higher than the rate of most states. The pension fund is also quite weak and is running out of money. It may be obvious why the plan is a sorely needed one.




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