On multiple occasions, the U.S. has attempted to stabilize the infrastructure and economy in Puerto Rico which they are responsible for destabilizing. But instead of meeting the needs of the people and island, the U.S. often only meets its own financial needs which ends up causing more issues for the people of Puerto Rico. While there are countless examples, Acts 20 and 22 are both examples that have recently had a lot of influence on the island and caused a lot of issues.

Act 20, established in 2012, provides tax incentives to Puerto Rican companies to export their services to customers outside of Puerto Rico. Now the term “Puerto Rican companies” is used very loosely, typically it is an American company moving to Puerto Rico to get a tax break. Most Puerto Rican companies cater to Puerto Ricans and are not eligible for the tax incentives. The tax incentives include a 4% corporate tax rate, a 100% tax exemption on dividends or property distributions, and a 100% exemption on property taxes. So this leads to American companies relocating to Puerto Rico for the tax break, leading to those companies buying up more property, leading to gentrification, furthering the wealth gap on the island and damaging the infrastructure despite the act being enacted to stabilize the economy.

Act 22 on the other hand is more catered to the individual. Act 22, again made to try and stabilize the economy, was made to attract foreign investors to come be permanent residents of Puerto Rico which would hopefully lead to them investing in the island. Act 22 offers these foreign investors and traders a 100% tax exemption on all dividends and interest income, a 100% tax exemption on all capital gains, and a 4% corporate tax rate. For a simpler explanation, all their transactions on things like real estate or stocks are all tax-free. This act has similar effects as Act 20, it also will lead to huge gentrification throughout the island, massively furthering the already large wealth gap on the island and harming Puerto Rico’s infrastructure. These rich foreigners will of course buy up properties originally intended for the Puerto Rican population, and invest into those areas causing the property tax to rise, pushing out the Puerto Ricans that live in those areas, the same stuff happens in the minority neighborhoods here in Chicago.

These acts were made by the U.S. without the consultation of the Puerto Rican people. They were not voted on. These acts harm the nature of the island and push out its residents by furthering gentrification and the wealth gap. They were not agreed upon and are not working and therefore need to be addressed by the U.S. government. It may be a hot take, but I do not want to see Puerto Rico filled with rich White people. I want it filled with my people, and I want to see my people prosper. The U.S. doesn’t seem to get that.