Puerto Rico: Potential Federal Fiscal Implications of Statehood PDF
Preview Puerto Rico: Potential Federal Fiscal Implications of Statehood
LATIN AMERICAN POLITICAL, ECONOMIC, AND SECURITY ISSUES P R UERTO ICO P F F OTENTIAL EDERAL ISCAL I S MPLICATIONS OF TATEHOOD No part of this digital document may be reproduced, stored in a retrieval system or transmitted in any form or by any means. The publisher has taken reasonable care in the preparation of this digital document, but makes no expressed or implied warranty of any kind and assumes no responsibility for any errors or omissions. No liability is assumed for incidental or consequential damages in connection with or arising out of information contained herein. This digital document is sold with the clear understanding that the publisher is not engaged in rendering legal, medical or any other professional services. L A P , ATIN MERICAN OLITICAL E , S I CONOMIC AND ECURITY SSUES Additional books in this series can be found on Nova’s website under the Series tab. Additional e-books in this series can be found on Nova’s website under the e-book tab. LATIN AMERICAN POLITICAL, ECONOMIC, AND SECURITY ISSUES P R UERTO ICO P F F OTENTIAL EDERAL ISCAL I S MPLICATIONS OF TATEHOOD ROBERT MERRILL EDITOR New York Copyright © 2014 by Nova Science Publishers, Inc. All rights reserved. No part of this book may be reproduced, stored in a retrieval system or transmitted in any form or by any means: electronic, electrostatic, magnetic, tape, mechanical photocopying, recording or otherwise without the written permission of the Publisher. For permission to use material from this book please contact us: Telephone 631-231-7269; Fax 631-231-8175 Web Site: http://www.novapublishers.com NOTICE TO THE READER The Publisher has taken reasonable care in the preparation of this book, but makes no expressed or implied warranty of any kind and assumes no responsibility for any errors or omissions. No liability is assumed for incidental or consequential damages in connection with or arising out of information contained in this book. The Publisher shall not be liable for any special, consequential, or exemplary damages resulting, in whole or in part, from the readers’ use of, or reliance upon, this material. Any parts of this book based on government reports are so indicated and copyright is claimed for those parts to the extent applicable to compilations of such works. Independent verification should be sought for any data, advice or recommendations contained in this book. In addition, no responsibility is assumed by the publisher for any injury and/or damage to persons or property arising from any methods, products, instructions, ideas or otherwise contained in this publication. This publication is designed to provide accurate and authoritative information with regard to the subject matter covered herein. It is sold with the clear understanding that the Publisher is not engaged in rendering legal or any other professional services. If legal or any other expert assistance is required, the services of a competent person should be sought. FROM A DECLARATION OF PARTICIPANTS JOINTLY ADOPTED BY A COMMITTEE OF THE AMERICAN BAR ASSOCIATION AND A COMMITTEE OF PUBLISHERS. Additional color graphics may be available in the e-book version of this book. Library of Congress Cataloging-in-Publication Data ISBN: (cid:28)(cid:26)(cid:27)(cid:16)(cid:20)(cid:16)(cid:25)(cid:22)(cid:22)(cid:21)(cid:20)(cid:16)(cid:22)(cid:26)(cid:27)(cid:16)(cid:23) (eBook) Published by Nova Science Publishers, Inc. † New York CONTENTS Preface vii Chapter 1 Puerto Rico: Information on How Statehood Would Potentially Affect Selected Federal Programs and Revenue Sources 1 United States Government Accountability Office Chapter 2 Puerto Rico’s Political Status and the 2012 Plebiscite: Background and Key Questions 143 R. Sam Garrett Index 163 PREFACE Chapter 1 - Puerto Rico has access to many federal programs, and is subject to certain federal tax laws; however, for some programs and for some aspects of tax law, Puerto Rico is treated differently than the states. Options for Puerto Rico’s political status include statehood. GAO was asked to review potential fiscal implications for federal programs if Puerto Rico were to become a state. This report examines potential changes to selected federal programs and related spending changes, and changes to selected federal revenue sources that would be expected should Puerto Rico become a state. This report also discusses economic and fiscal factors under statehood that could influence changes in spending and revenues. To evaluate potential changes to selected federal programs and revenue sources, GAO reviewed federal laws and regulations and interviewed federal and Puerto Rico agency officials. To discuss factors that could influence changes in spending and revenue, GAO reviewed economic data from Puerto Rico’s government and interviewed officials from the current and past Puerto Rico government administrations. Chapter 2 - For the first time since 1998, voters in Puerto Rico went to the polls in November 2012 to reconsider the island’s relationship with the federal government (a concept known as “political status”). Voters were asked to answer two questions: (1) whether they wished to maintain Puerto Rico’s current political status; and (2) regardless of the choice in the first question, whether they preferred statehood, independence, or to be a “sovereign free associated state.” According to results certified by the Puerto Rico State Elections Commission, approximately 54.0% of those who cast ballots answered “no” to the first question. In the second question, approximately viii Robert Merrill 61.2% of voters chose statehood. The island’s new governor and territorial legislature contend that the results were “inconclusive.” The plebiscite results are potentially significant if they are interpreted to mark the electorate’s desire to change the island’s present political status. The significance of the plebiscite remains to be seen, however, particularly because in the same election in which voters arguably endorsed a change in the status quo and favored statehood, they also voted out the pro-statehood incumbent governor and former Resident Commissioner, Luis Fortuño, as well as majorities in the territorial legislature believed to be generally supportive of statehood. No change in Puerto Rico’s political status could occur without congressional action.
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