Equality’s First Step for Puerto Rico

Paying American income taxes is fundamental

Guest Opinion for The Latino Newsletter

The ongoing debate surrounding Puerto Rico's status has long been a contentious issue, with opinions divided on the best path forward. One argument stands out for its clarity and potential benefits: full assimilation, integration and acculturation as the way to achieve complete annexation into the United States. This path aligns with the principles of equality and unity. It also presents tangible economic and social advantages that make people’s lives better.

The integration process begins with the financial assimilation of Puerto Rican residents into the American tax system. Currently, Puerto Rico residents are exempt from paying U.S. federal income taxes on money earned within the territory, creating a financial distinction between them and mainland Americans. This exemption, while seemingly beneficial in the short term, perpetuates separateness and dependency.

In 2024, the minimum income level at which Americans must start paying federal income taxes is set at $12,950 for single filers under the age of 65, as per IRS guidelines. Implementing this tax threshold in Puerto Rico would generate additional revenue for American public services and foster a greater sense of civic duty and participation in the American dream among Puerto Rico’s residents.

Accounting for purchasing power parity (PPP), Puerto Rico’s 2022 per capita income was $17,786. This means a vast majority of Puerto Rico residents would immediately pay federal income taxes and start contributing towards full financial integration into the United States.

Economic Benefits

One of the primary arguments against annexation is the potential economic burden of paying federal taxes. However, this perspective overlooks the significant economic benefits that integration can bring. By fully participating in the American economy, Puerto Rico would gain access to a broader market, increased federal funding and improved infrastructure. These advantages far outweigh the costs of taxation.

Integration would attract investment and create jobs, reducing the unemployment rate and boosting the local economy. Moreover, with the elimination of the current tax haven status, Puerto Rico would become a more attractive destination for businesses looking to establish a stable and predictable tax environment. This stability would, in turn, lead to sustainable economic growth and development.

Social and Cultural Equality

Beyond economic factors, full assimilation into the United States offers profound social and cultural benefits. It would promote a greater sense of belonging and national identity among residents, fostering unity and reducing the cultural divide. This integration would also enhance the educational system, providing students with equal opportunities and resources available to their counterparts on the mainland.

Acculturation is not about erasing cultural identity but rather about embracing and celebrating the diversity that Puerto Rico brings to the American tapestry. This mutual exchange would enrich both the island and the mainland, leading to a more inclusive and vibrant national culture.

Addressing Concerns and Misconceptions

Critics of annexation often raise concerns about the loss of cultural identity and the imposition of American values. However, it is essential to recognize that cultural preservation and integration are not mutually exclusive. The experiences of other states with rich cultural heritages —such as Hawaii, Arizona and New Mexico— demonstrate that it is possible to maintain cultural uniqueness while fully participating in the American union.

Another common misconception is that annexation would lead to a decline in the standard of living. On the contrary, the increased movement of Americans, federal support and economic opportunities that come with statehood would likely improve residents’ quality of life. Access to better healthcare, education, and infrastructure would contribute to a higher standard of living and overall well-being.

The path to annexation requires a clear and strategic approach, beginning with a referendum to gauge the interest of the people in fully participating in the American dream. This democratic process would ensure that the decision unequivocally reflects the collective supermajority desire of the residents. Following a positive outcome, the next steps would involve negotiations with the federal government to outline the terms of statehood, including the transition to the American tax system and the integration of federal programs and services.

Conclusion

The full assimilation, integration and acculturation of Puerto Rico into the United States is not merely an administrative change but a profound transformation that promises equality, economic growth and cultural enrichment. This starts by contributing to America’s general fund, which is the source of programs like Medicaid, Supplemental Security Income (SSI) and the Supplemental Nutrition Assistance Program (SNAP). By embracing this path, residents would gain the benefits of full American citizenship, including the right to vote in federal elections and equal representation in Congress.

Paying American income taxes is a fundamental first step in this journey, reaffirming the commitment to full equality and shared responsibility. As the debate continues in the U.S. Congress, it is crucial to focus on the long-term benefits of annexation, rather than the short-term challenges. The vision of a united and prosperous America is within reach, and the full integration of Puerto Rico is a vital step towards realizing that vision.

About the Author

Javier Ortiz, with over 30 years of experience in technology, business and the public sector, leads investment technical due diligence and innovation at Falcon Cyber Investments.

The Latino Newsletter welcomes opinion pieces in English and/or Spanish from community voices. You can email them to our interim publisher, Julio Ricardo Varela. The views expressed by outside opinion contributors do not necessarily reflect the editorial views of this outlet.

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