Contact us
CALL US NOW 1-888-GOLD-160
(1-888-465-3160)

Peter Schiff: Fleeing From the Tax Man

  by    0   1

As you may know, several years ago, Peter Schiff relocated to Puerto Rico. Have you ever wondered why? What are the advantages? And what can his move teach us more generally about economics and politics?

Peter recently appeared on the Puerto Rico ICON Podcast and answers some of those questions.

The primary reason Peter moved was the tax benefits of operating a business in Puerto Rico. He’s not subject to federal income tax, which is a huge economic incentive. As Peter put it, the more expensive they make it to stay in the US, the more attractive they make it relocate to Puerto Rico.

Peter discussed the possibility of Puerto Rico statehood. He said he thinks it’s a bad idea. For one thing, it would take on part of the federal government’s $23 trillion debt.

The United States is much more heavily in debt that Puerto Rico. So, Puerto Ricans would compound their debt problem by joining the United States.”

And of course, the biggest downside for Puerto Ricans is that they would be subject to the federal income tax.

As somebody who has been subject to that tax, you don’t want that. I mean, you don’t want IRS agents descending on Puerto Rico. That’s not how to invigorate the Puerto Rican economy – to infest it with IRS agents.”

Peter said the best thing for Puerto Rico would not be adding more government through statehood, but actually shrinking the existing government.

We need less government here in San Juan, not more government coming from Washington D.C. So, we can focus on making government smaller and freeing up more resources to the private sector and reducing taxes even further.”

Peter said big government is one of the problems facing the mainland US. The Trump administration has played lip-service to shrinking government, and it did lower taxes. But it’s given us higher deficits.

So, we’re borrowing to pay for bigger government instead of taxes to pay for bigger government. But the bottom line is it’s the bigger government that is undermining real economic growth and rising living standards.”

Peter said getting politicians to lobby for money and government programs isn’t the pathway to prosperity.

We want private enterprise. The absence of the IRS, a lower tax rate, that is much better for economic growth than having politicians who can try to get more government money redirected back into government programs in Puerto Rico. That is not what is going to grow the Puerto Rican economy. I lived in Connecticut. I had congressional representation. I left that. In fact, my congressman didn’t represent me at all.”

If you’re not sending money to Washington, you don’t have to beg to get it back.

So, I would rather let the people in the 50 states fight over those crumbs. We don’t need those crumbs. We could just keep all of our money and not have to lobby Congress to get some of it back.”

Ultimately, all governments are inefficient.

That’s why you don’t want the government doing things. You want the free market to do things because they will be efficient. They will control the costs and continuously improve the quality — the opposite of what government does.”

Get Peter Schiff’s key gold headlines in your inbox every week – click here – for a free subscription to his exclusive weekly email updates.
Interested in learning how to buy gold and buy silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!

Related Posts

Peter Schiff: People Will Be Wiped Out By the Inflation Tax

The printing presses are running at full speed as the Federal Reserve creates money out of thin air at an unprecedented rate. Peter Schiff recently appeared on Kitco News to talk about the impact of all money-printing, borrowing and government spending. Somebody has to pay for this and we all will. In fact, a lot […]

READ MORE →

Peter Schiff: A Very Dangerous Road to Go Down

As if there weren’t enough headwinds for the economy already, the Washington Post reported the Trump administration was exploring the possibility of canceling some US debt obligations to China.  President Trump denied it but floated the idea of tariffs on Chinese imports as punishments for that country’s handling of the coronavirus. Peter Schiff appeared on […]

READ MORE →

Peter Schiff: Gold Mines are Literally Gold Mines

Earnings reports started coming in last week. It was a mixed bag, with some companies showing the negative impacts of the coronavirus-induced government shutdowns, but other companies coming in more upbeat. Peter Schiff appeared on RT Boom Bust to talk about it. He said the only thing the stock markets have going for them right […]

READ MORE →

Peter Schiff: The Great Inflation Debate

Peter Schiff recently appeared on Newsmax The Income Generation with David Scranton to talk about the impacts of the coronavirus government shutdown on the economy. The segment turned into a somewhat contentious debate about inflation. Guest host Jeff Small insisted we aren’t going to see price inflation, despite the Federal Reserve creating trillions of dollars […]

READ MORE →

Peter Schiff: Who’s Going to Pay for All This?

The federal government is borrowing and spending trillions to bail out everybody. The Federal Reserve is enabling this by printing trillions of dollars out of thin air. On a recent InfoWars interview, Peter Schiff asked the question nobody seems to be grappling with: who’s going to pay for all this? Peter reminds us that ultimately […]

READ MORE →

Comments are closed.

Call Now