Tax Considerations in the Puerto Rico Statehood Debate
Cintron, Lizbeth
Cintron, Lizbeth
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Abstract
This thesis examines the potential impact of Puerto Rico attaining statehood on the individual tax affairs of Puerto Ricans. Currently, as a U.S. territory with commonwealth status, Puerto Rico does not pay federal income taxes but is excluded from major federal programs. Under statehood, Puerto Ricans would be subject to federal income tax but would gain access to all federal tax credits, like the Earned Income Tax Credit. This study aims to determine whether the benefits of statehood, such as full congressional representation and increased access to federal funding, outweigh the costs of increased taxation. The research involves analyzing existing legislation and recent changes, including the American Rescue Plan, to assess the potential impacts on Puerto Ricans' Income and taxes. By evaluating these factors, this thesis seeks to provide insights into the implications of statehood for Puerto Ricans' taxation and federal program access.
Description
Undergraduate
Date
2024-01-01