In their cutting-edge new book, "Pay to the Order of Puerto Rico," economist Arthur Laffer along with businessman and Puerto Rico resident Alexander Odishelidze reveal the onerous burden that Puerto Rico places on the United States.
Astonishingly, say Laffer and Odishelidze, American families pay $22 billion per year to maintain a dependent colony!
"Since the 1920s, industries on the island, particularly U.S. pharmaceutical companies, have enjoyed a targeted tax break that essentially relieved them of all U.S. corporate income tax on their earnings in Puerto Rico. However, this tax giveaway no longer accomplishes any meaningful purpose for the Puerto Rican economy. Instead, it benefits a wealthy and well-connected few. Moreover, it punishes the Puerto Rican people who suffer the fraud of dependency," said Odishelidze.
As a result, today Puerto Rico is ranked 52nd in per capita income among U.S. states and territories.
"Puerto Rico has had less than full freedom within the American system for more than a century. Indeed, the Congress of the United States has not once passed legislation that would permit Puerto Rico to stage a clear and consequential vote on acceptable options for a permanent status," write Odishelidze and Laffer.