OFFICIALS LEGISLATION INTEREST GROUPS PUBLIC STATEMENTS COMMITTEES VETOES

Puerto Rico Act 22

Floor Speech

Date: Dec. 7, 2023
Location: Washington, DC

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Mr. GARCIA of Illinois. Mr. Speaker, I rise today to draw attention to Puerto Rico Act 22 and echo the concerns of many, including my constituents, about this tax loophole.

Because of Act 22, Puerto Rico is the only place in the world where a mainland U.S. citizen can move and not pay a dime in Federal capital gains or income tax without renouncing their citizenship.

Act 22 was sold as an economic boost in the shadow of a recession, but that is not what has happened.

Millionaires and billionaires are flocking to the island to avoid paying taxes. A cottage industry of tax professionals and CPAs has emerged to support these tax evaders.

Crypto magnates, real estate speculators, and internet influencers, like Logan Paul, are part of a new generation of gentrifiers driving up costs and displacing Puerto Ricans.

I am pleased that the IRS is cracking down on related fraud. Thanks to my colleagues' efforts, Federal investigations on the impacts of these policies have begun. Act 22 is part of a larger story, and it should be repealed.

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