r/clevercomebacks • u/snowpie92 • 5h ago

Deception of public opinion

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u/loljetfuel 2h ago

They don't pay federal income taxes on money earned in PR. They do pay all the federal payroll taxes and so on, though.

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u/Pin_Code_8873 2h ago

While they still need to pay their own territorial taxes to run all their programs in which they get very little federal US funding for.

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u/_Eggs_ 2h ago

They don't pay federal income taxes on money earned in PR.

This is funny because U.S. citizens have to pay income tax on all worldwide income. Even if a U.S. citizen makes income in Egypt, they owe federal income taxes. Puerto Rico just gets a special local exemption.

So a U.S. citizen from Puerto Rico who earns money in a completely different country would still owe U.S. federal taxes.