Puerto Rico Economic Situation

[Marylandteachergirl]

They also do not pay federal income tax

 

This is correct. They want the benefits and the bailouts but do not, and do not want to pay federal taxes. You can't have it both ways.

[Aviator of the Seas]

This is correct. They want the benefits and the bailouts but do not, and do not want to pay federal taxes. You can't have it both ways.

 

This is not correct. Certain income from Puerto Rico sources is exempt from federal income taxes. And that's not just for residents of the island, but for many U.S. and global companies that operate there. Otherwise, Puerto Ricans are subject to social security and medicare taxes, unemployment tax, and yes, sometimes federal income tax. This is on top of very high local income and sales taxes.

[Aviator of the Seas]

I'm certainly not concerned about Puerto Rico's ability to entertain visitors. I'm more concerned about rather large investments of my retirement money. When a governor nonchalantly says "Gee we may not be able to pay your money back that we borrowed from you", I have trouble feeling very understanding or calm. After all the reason for a person to invest in bonds as opposed to stocks and mutual funds is for the safety of their investment. It is upsetting to realize it's not safe at all!

 

The governor's English is not the best and his statement was more a slip of the tongue than a statement of official policy. He has backtracked and explained that what he intended to say was that Puerto Rico's debt is not sustainable, which is true. I'm no fan of him, but his government is taking steps to try and remedy the situation, although as we have seen, many of these steps have been clumsy at best. On the particular issue of bonds, Puerto Rico has not defaulted and it is not the intention of the government to default. They want to restructure that debt. Since Puerto Rico has no bankruptcy protection, it will be up to the bondholders (you) to allow that or not.

[RaiderFaninNM]

Great one more Greece on the horizon, well you created it then solve it!

 

 

I love it when something like this happens and they expect others to solve their issues, poor money management is NOT the issue of the US government! TAKE responsibility yourself..........:mad:

 

With alot of tourist $$$ coming in the country and they seem to not even try to solve issues themselves, sad that the people have to pay the price.

[alfaeric]

I'm from Puerto Rico, and most of my family (parents, sister, aunts, uncles, cousins) and most of my childhood friends still live there. While the economy is the hot topic of the day and everybody is genuinely concerned about the island's future, every day life hasn't changed much. Everyone is going about their daily lives like they have before the current situation was announced. Most likely, you as a tourist will not notice any changes (yet) unless you read the newspaper.

 

Having just gotten back, I fully agree with this.

 

We spent a week in Ponce, with my in-laws, and noticed that personal consumption of stuff still is quite strong- going to the mall was packed with people buying stuff, just like going to Home Depot (or the Walmart next to it). Lots and lots of new cars driving around.

 

I could not tell, other than road work that has been slow for the past two decades, that there are any serious economic problems.

 

There are major Government problems, but not nearly equal private issues.

 

One note- sales tax went up one of the days we were there. So check your purchases in San Juan if they are actually duty free.

[alfaeric]

With alot of tourist $$$ coming in the country and they seem to not even try to solve issues themselves, sad that the people have to pay the price.

 

On a side note, as pointed out in a prior post, while Tourism is important, it's not THE important source of money.

 

But high tourist prices are also not unique to Puerto Rico. Next time you get a hotel, check the taxes. Anywhere.

[Lard Greystoke]

I love it when something like this happens and they expect others to solve their issues, poor money management is NOT the issue of the US government!

 

So the US government doesn't have problems with poor money management?

 

Since when?

[RaiderFaninNM]

So the US government doesn't have problems with poor money management?

 

Since when?

 

Reread the original post and that was not mentioned..............:rolleyes:

[Marylandteachergirl]

This is not correct. Certain income from Puerto Rico sources is exempt from federal income taxes. And that's not just for residents of the island, but for many U.S. and global companies that operate there. Otherwise, Puerto Ricans are subject to social security and medicare taxes, unemployment tax, and yes, sometimes federal income tax. This is on top of very high local income and sales taxes.

 

 

Statistically, very few PR citizens pay federal income tax. Many sources are exempt. If they receive the benefits of medicare and social security, citizens should pay into it. That's fair. I pay almost 40% of my salary in taxes and deductions. Different states have different tax rates. We even pay a tax here on rain. My point is, if you expect assistance, you should contribute. Fair.

 

I will agree to disagree.

[Lard Greystoke]

Statistically, very few PR citizens pay federal income tax. Many sources are exempt. If they receive the benefits of medicare and social security, citizens should pay into it. That's fair. I pay almost 40% of my salary in taxes and deductions. Different states have different tax rates. We even pay a tax here on rain. My point is, if you expect assistance, you should contribute. Fair.

 

I will agree to disagree.

 

FICA taxes are separate from federal income. You can't get medicare/social security benefits without paying into it. You're a teacher????

 

?????

[Marylandteachergirl]

Great one more Greece on the horizon, well you created it then solve it!

 

 

I love it when something like this happens and they expect others to solve their issues, poor money management is NOT the issue of the US government! TAKE responsibility yourself..........:mad:

 

With alot of tourist $$$ coming in the country and they seem to not even try to solve issues themselves, sad that the people have to pay the price.

 

 

Puerto Rico is a territory of the United Staes, so in essence, it is our responsibility to help. But PR also needs to help.

[Jana60]

The governor's English is not the best and his statement was more a slip of the tongue than a statement of official policy. He has backtracked and explained that what he intended to say was that Puerto Rico's debt is not sustainable, which is true. I'm no fan of him, but his government is taking steps to try and remedy the situation, although as we have seen, many of these steps have been clumsy at best. On the particular issue of bonds, Puerto Rico has not defaulted and it is not the intention of the government to default. They want to restructure that debt. Since Puerto Rico has no bankruptcy protection, it will be up to the bondholders (you) to allow that or not.

 

I pray you're right because the resale value of my bonds has dropped by 55% and I don't want to realize that lost so I'm not selling so I hope Puerto Rico recovers and is able to pay me back my original investment eventually.

[Marylandteachergirl]

FICA taxes are separate from federal income. You can't get medicare/social security benefits without paying into it. You're a teacher????

 

?????

 

I am well aware what the deductions are and where they go as well as all the taxes I pay. I also understand FICA and Social Security. Having worked since I was 15, I understand the necessity of having enough quarters earned within the SS system. I also assist with tax returns, so yes, I do know...

 

I took early retirement from the public school system a few years ago. I work for the government now. I am well educated enough, so I certainly hope you didn't imply I don't understand something because I am "a teacher".

 

And what do you do?

[Aviator of the Seas]

Statistically, very few PR citizens pay federal income tax. Many sources are exempt. If they receive the benefits of medicare and social security, citizens should pay into it. That's fair. I pay almost 40% of my salary in taxes and deductions. Different states have different tax rates. We even pay a tax here on rain. My point is, if you expect assistance, you should contribute. Fair.

 

I will agree to disagree.

 

Well, employees and employers in Puerto Rico DO pay the same FICA taxes as those in the states, yet we DO NOT receive the same benefits. Our Social Security and Medicare benefits are capped by Congress, again, even if we pay the SAME as you on the mainland. To add to this, employers in PR also pay the SAME in FUTA (federal unemployment taxes) as stateside employers, but we receive only a fraction of the benefits in return.

[Marylandteachergirl]

In that case, I pray the situation for all of you improves very soon. Perhaps when we have a new administration in 2016.

[Marylandteachergirl]

Glad to hear that you're brilliant. Certainly that gives you the right to stand in judgment of the entire population of Puerto Rico.

 

I'm only a person of ordinary intelligence - and logical ability - but here's the original quote I was responding to:

 

"Statistically, very few PR citizens pay federal income tax. Many sources are exempt. If they receive the benefits of medicare and social security, citizens should pay into it. That's fair."

 

Clearly this implies a connection between a) not paying federal income tax, and b) receiving social security benefits. There is no such connection. It remains a fact that you cannot receive social security benefits without paying for them.

 

Why imply that Puerto Ricans are getting benefits unfairly when it is in fact impossible? Just don't like certain people?

 

 

This is also incorrect. There are many exemptions to this, here in the states as well as territories.

[Lard Greystoke]

This is also incorrect. There are many exemptions to this, here in the states as well as territories.

 

LIke what? SSI, I guess. Are we claiming that Puerto Ricans are faking disability? Because here's the quote, again:

 

"If they receive the benefits of medicare and social security, citizens should pay into it. That's fair."

 

So we're saying Puerto Ricans don't pay into it? That they're getting SSI improperly? That survivors are getting benefits which were not earned?

[Marylandteachergirl]

LIke what? SSI, I guess. Are we claiming that Puerto Ricans are faking disability? Because here's the quote, again:

 

"If they receive the benefits of medicare and social security, citizens should pay into it. That's fair."

 

So we're saying Puerto Ricans don't pay into it? That they're getting SSI improperly? That survivors are getting benefits which were not earned?

 

Really? I wasn't even referencing a specific group. Just citing that there are exceptions within the Social Security System.

 

It seems you make a habit of going on cruise sites with message boards and attacking people. I can reference comments about Sweden you have made and comments suggesting others are too out of shape/fat to participate in volcano hikes. You obviously need something else to do.

 

I have reported you to the site admins for harassment. You may want to go re-read the harassment policy and posting guidelines for cruise critic.

[Marylandteachergirl]

And to Aviator of the Seas, thank you for the corrections, honest answers, and candid statements. I appreciate the time and the information you provided. I was NOT maligning a specific group, rather citing inconsistencies that seem in need of revision. I hope the situation improves there quickly.

[Aviator of the Seas]

And to Aviator of the Seas, thank you for the corrections, honest answers, and candid statements. I appreciate the time and the information you provided. I was NOT maligning a specific group, rather citing inconsistencies that seem in need of revision. I hope the situation improves there quickly.

 

Me too!

[Lard Greystoke]

Really? I wasn't even referencing a specific group. Just citing that there are exceptions within the Social Security System.

 

It seems you make a habit of going on cruise sites with message boards and attacking people. I can reference comments about Sweden you have made and comments suggesting others are too out of shape/fat to participate in volcano hikes. You obviously need something else to do.

 

I have reported you to the site admins for harassment. You may want to go re-read the harassment policy and posting guidelines for cruise critic.

 

Love the hostility. I quote:

 

"Statistically, very few PR citizens pay federal income tax. Many sources are exempt. If they receive the benefits of medicare and social security, citizens should pay into it. That's fair."

 

Seems like "PR citizens" and "if they receive the benefits of medicare and social security, citizens should pay into it. That's fair", are in pretty close proximity.

 

Who were you referring to? Ukrainians? Because it says "PR citizens".

 

And if the moderators are interested, I believe strongly that PR citizens should not be singled out as receiving the benefits of medicare and social security, without paying for it, any more than any other people.

[Racefanan]

Love the hostility. I quote:

 

"Statistically, very few PR citizens pay federal income tax. Many sources are exempt. If they receive the benefits of medicare and social security, citizens should pay into it. That's fair."

 

Seems like "PR citizens" and "if they receive the benefits of medicare and social security, citizens should pay into it. That's fair", are in pretty close proximity.

 

Who were you referring to? Ukrainians? Because it says "PR citizens".

 

And if the moderators are interested, I believe strongly that PR citizens should not be singled out as receiving the benefits of medicare and social security, without paying for it, any more than any other people.

 

sheesh does anyone cruise with you:eek: