US citizens that don't pay federal taxes yet reap all the benefits. Sounds like a good deal...…..for them. No wonder they don't want to become an official state.
You are right Puerto Rican's don't pay U.S. income tax. If The island was a state and not a territory, folks would be taxed. I suspect this only affects a select few people in Puerto Rico.
Currently, households in Puerto Rico have a median annual income of $20,078 . The most individuals pay in the U.S. with an income of that level is 10%. Considering that the standard deduction for an individual is currently $12,000 or $13,500 if you are over 65, 24,000 for a married couple and $18,000 for head of household. Most if not all of the income tax you paid during the year will be refunded. It is also possible if you have tax credits, you'll get more than you paid in back. Only people with an income over $25,000 pay taxes on a portion of their Social Security benefits. The amount of that portion is broken into tax brackets.
I know someone who has a combined annual income from annuity and Social Security that is less than $20,000. However much income tax is deducted from her annuity is 100% returned each year. Nothing is deducted from her Social Security except for Medicare premiums.
People all over the U.S. with incomes below a certain level, do not pay income tax and yet they receive whatever benefits they qualify for. Why single out Puerto Ricans?
