Free Republic

Now that you’ve created the next great app and your investment in your startup is worth a billion dollars, at least on paper, it’s time for a really difficult challenge: how to cash out without paying capital gains taxes anywhere in the world? With no U.S. or Puerto Rican tax on much investment income of new residents, U.S. citizens now can pay zero tax on capital gains. For several hundred affluent Americans over the last couple of years (including Toby Neugebauer, a key financier to Ted Cruz) the answer has been to establish a principal residence in Puerto Rico, and...

Summary •Puerto Rico's borrowings represents an exceptionally complex set of credits in the (already arcane-enough) municipal bond market. •The Legislature's recent rejection of the Governor's tax reform proposal leaves fewer options to balance the budget and raises liquidity concerns. ~ snip ~ Puerto Rico released its most recent quarterly financial report on May 7. The report's list of risk factors includes the possibility of the Commonwealth running out of cash and defaulting on debt payments as soon as September. As organizations go, state and local governments are hideously illiquid. Even in the best of times, their political constituents do not...

The governor of Puerto Rico told the New York Times that the island cannot pay back it's $72 billion debt and will seek permission from its creditors to defer payments. The news precedes an address by Governor Alejandro Garcia to the Puerto Rican legislature, where he will unveil a budget that cuts about $670 million from a $9.8 billion budget, while setting aside another $1.5 billion to pay the debt. Fox News: Gov. Alejandro Garcia Padilla's spokesman, Jesus Manuel Ortiz, confirmed that the island's government is seeking to defer payments while negotiating with creditors. He confirmed comments by Garcia that appeared...

The governor of Puerto Rico has admitted that it can't keep paying down the over $72 billion worth of public debt obligations. As a result, it finds itself in a uniquely awful position. It can't go into bankruptcy according to its own laws, so now it has to deal exclusively with its creditors to restructure its debt. That means it has to deal with Wall Street. "I think the surprise was that it happened this quickly," said Brian Kelly, CEO of Connecticut-based fund Brian Kelly Capital. "We thought it would take 6 months to a year... the solution is a...

Puerto Rico's governor believes the U.S. territory will not be able to pay back its $72 billion public debt, a spokesman told the Associated Press late Sunday. Gov. Alejandro Garcia Padilla's spokesman, Jesus Manuel Ortiz, confirmed that the island's government is seeking to defer payments while negotiating with creditors. He confirmed comments by Garcia that appeared in a report in The New York Times published late Sunday, less than a day before Garcia is scheduled to deliver a public address amid debate on a $9.8 billion budget that calls for $674 million in cuts and sets aside $1.5 billion to...

Like Greece, the Puerto Rican government has more debt than it can service, and some are calling for a bailout by U.S. taxpayers. The major Puerto Rican state-owned or controlled enterprises are all losing money, including the power authority which is insolvent. Puerto Rico is an American territory that was acquired from Spain in 1898 during the Spanish-American War. The island has a population of about 3.6 million, which is declining as many Puerto Ricans emigrate to the U.S. mainland or elsewhere because of the continuing economic stagnation. Puerto Ricans are American citizens, but their per capita income is about...

Fresh off a setback on his tax reform plan, Puerto Rico's governor laid out a recovery roadmap on Thursday for the U.S. commonwealth's struggling finances. In his state of the Commonwealth address, Governor Alejandro Garcia Padilla chastised the Puerto Rico House of Representatives for rejecting tax changes critical to his financial recovery plan, saying it made recovery harder but not impossible. Padilla said he will form a group of financial experts charged with improving Puerto Rico's liquidity and another to take on a reorganization of the government. He also released an agenda that calls for spending cuts in all government...

Puerto Rico is in trouble, after years of bad policies, mismanagement, excessive debt and bad luck. Its economy has been shrinking or stagnant for a decade and the unemployment rate sits at nearly 12 percent. The commonwealth and its utilities have a debt of $73 billion, its public pension funds are woefully underfunded and one state agency has warned that the government could be forced to shut down soon because it might run out of money. Lawmakers in Washington and San Juan need to come up with a plan that addresses the financial and economic problems of the territory, which...

Puerto Rico's Government Development Bank warned Wednesday that it is very likely the U.S. territory's government could be forced to shut down in the next three months because of a lack of funds. The bank made the warning in a letter made public a day after it was sent to Gov. Alejandro Garcia Padilla and the presidents of the island's Senate and House of Representatives. "The island's financial state is extremely uncertain," the letter said. "A government shutdown would have a devastating impact on the economy, with salary and public service cuts, and a long and painful recovery."

Puerto Rico's top finance officials said the government of the US territory will most likely shut down in three months because of a looming liquidity crisis, and they warned of a devastating impact on the island's economy. In a letter to leading lawmakers, including Gov. Alejandro Padilla, the officials said a financing deal that could potentially salvage the government's finances looked unlikely to succeed. It warned of laying off government employees and reducing public services. "A government shutdown is very probable in the next three months due to the absence of liquidity to operate," the officials said. "The likelihood of...

Antonio Weiss, the former Wall Street banker who became a top adviser to the Treasury secretary this year, has made two trips to Puerto Rico in recent weeks. Kent Hiteshew, who runs the Treasury Department’s office of state and local finance, has also met with government officials in San Juan multiple times this spring. The Treasury Department is quietly stepping up its involvement in Puerto Rico, indicating that the island’s financial problems, which have been simmering for years, are reaching a critical point. High-ranking officials have been shuttling between Washington and Puerto Rico, advising commonwealth officials as they try to...

Professors who rail against the imprisonment of blacks rarely show as much interest in black victims of crime. “In 1980, there were 500,000 Americans in prison or jail,” Jason Stanley writes in The Chronicle Review. “By 2013, there were more than 2.3 million.” “The explosion in incarceration has fallen disproportionately on the descendants of slaves. White Americans are 77 percent of the U.S. population, and black Americans 13 percent. Yet more blacks are incarcerated than whites.” Stanley is a philosophy professor at Yale. His conclusions resemble those of 20 scholars who recently completed a study under the auspices of the...

How do you fix a failing high school? Change the grades. Under pressure to boost student achievement, the state-designated “out of time” Automotive HS in Greenpoint, Brooklyn, has resorted to rigging Regents exam scores. The failing scores of five students who took the Regents in January were switched to passing scores of 65 or higher on their transcripts, the city Department of Education has confirmed. One junior saw his scores upped to pass two exams required for graduation — Living Environment (biology) and algebra — even though he had failed both classes. The student insisted he deserved a break on...

Dodd acknowledged his role in the change after a Treasury Department official told CNN the administration pushed for the language. Both Dodd and the official, who asked not to be named, said it was because administration officials were afraid the government would face numerous lawsuits without the new language. ---snip-- "I agreed reluctantly," Dodd said. "I was changing the amendment because others were insistent."

Dr. Gary Dee figured the state’s fiscal troubles would lead radiologists like him to face a cut in their Medicaid payment rates. But he wasn’t anticipating the 42.5 percent cut Gov. Dannel P. Malloy’s administration imposed this spring. Now, Dee’s private practice has stopped taking new Medicaid patients. “The reimbursement is to the point where we can’t take care of these patients. They’re going to lose access,” said Dee, president of MidState Radiology Associates in Meriden. The result is that it could become harder for the more than 725,000 state residents with Medicaid to find specialists to treat them, undermining...

Ten years ago, on June 23, 2005, the United States Supreme Court dropped a judicial thunderbolt in Kelo v. City of New London. By a narrow five-to-four margin it rejected a spirited challenge that Susette Kelo and her neighboring landowners had raised against the ambitious land-use development plan put forward by the City of New London, Ct. The formulaic account of the holding is that a local government does not violate the “public use” component of the Constitution’s takings clause — “nor shall private property be taken for public use, without just compensation” — when it condemns property that will...

Listen Live: Sound Off Connecticut with Jim Vicevich 9 a.m. to noon ET (Daily Thread)Sound Off Connecticut is a popular conservative/libertarian call in talk show hosted by Jim Vicevich weekday mornings from 9 a.m. to noon ET. Although based in Connecticut, the show welcomes callers from all over the United States! This is your chance to sound off America! Call into the show toll free (800) 966-9842! Listen to the LIVE AUDIO STREAM at http://wtic.com - it's free and NO registration is required! If you're in southern New England listen over the air to WTIC 1080 AM, the 50,000 watt...

Witnesses say the white gunman who killed nine people at the historic Emanuel African Methodist Episcopal Church in Charleston, S.C., was quite vocal about his motives: He wanted to kill black people. Sylvia Johnson, whose cousin the Rev. Clementa Pinckney was one of three ministers killed in the church, said a survivor of the horror told her the shooter muttered, "I have to do it. You rape our women and you're taking over our country. And you have to go." In Charleston, a slaughter in the sanctuary In Charleston, a slaughter in the sanctuary Facebook photos and other evidence suggest...

A new study in the American Journal of Public Health claims that the state of Connecticut’s 1995 gun licensing law has reduced firearm homicide rates by 40 percent. But this just released study gives academics a bad name. Not surprisingly, anti-gun activist and former New York City mayor Michael Bloomberg and the left-wing Joyce Foundation funded the research. The study cherry picks which states with gun licensing laws are examined, which years are looked at, and the type of crime to study. Any normal researcher would look at all the states in the country that have passed a similar law...

Now that we know that race is a state of mind, rather than a genetic inheritance, the question must be asked: is Barack Obama secretly a white man? Perhaps, like Rachel Dolezal, he tells people that he is black, but he is actually white. Again, black is an attitude, a state of mind. Sure, it helps if you braid your hair into long ropes and tie it on top of your head like Dolezal did, or have an afro during your pot- and cocaine-using days like Obama. But what really counts is what is going on inside your mind. And...