Kerig3
04-29-2009, 12:42 AM
As I was Googling to learn more about the U.S. Territories, since it is they that seem to be imposing HR 669 upon us, the States, I came across the following information below. If I'm understanding this correctly (please correct me if I'm wrong) citizens of these territories get U.S. citizenship extended to them, but they do not pay federal U.S. taxes like we do. So I ask, why the hell do they have any influence over my rights, a U.S. citizen that does pay federal taxes???
The following was taken from HERE (https://secure.wikileaks.org/wiki/CRS:_Federal_Taxes_and_the_U.S._Territories:_An_Overview,_May_19,_2008)
Residents of the U.S. possessions are generally U.S. citizens. Typically, the United States taxes its citizens on their worldwide income, but residents of the U.S. possessions -- Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands -- are generally not required to pay federal income taxes on income whose source is within the possessions. Similarly, federal excise taxes do not apply in the possessions, and residents of the possessions may qualify for exemption from federal estate and gift taxes. For their part, corporations that conduct business operations in the possessions can also qualify for reduced federal taxes, although one federal tax benefit, delivered by the possessions tax credit and the Puerto Rican economic activity tax credit have expired.
In short the United States generally does not apply its taxes to the possessions. The precise outlines of the federal tax jurisdiction vary from territory to territory. And there are exceptions: Social Security taxes generally apply in the possessions.
The possessions apply their own tax systems. In some cases, their territorial tax systems are required to reflect federal tax provisions exactly: some possessions are required to apply so-called "mirror" tax systems. In other cases, however, the possessions' own tax systems depart significantly from federal tax rates and rules.
The following was taken from HERE (https://secure.wikileaks.org/wiki/CRS:_Federal_Taxes_and_the_U.S._Territories:_An_Overview,_May_19,_2008)
Residents of the U.S. possessions are generally U.S. citizens. Typically, the United States taxes its citizens on their worldwide income, but residents of the U.S. possessions -- Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands -- are generally not required to pay federal income taxes on income whose source is within the possessions. Similarly, federal excise taxes do not apply in the possessions, and residents of the possessions may qualify for exemption from federal estate and gift taxes. For their part, corporations that conduct business operations in the possessions can also qualify for reduced federal taxes, although one federal tax benefit, delivered by the possessions tax credit and the Puerto Rican economic activity tax credit have expired.
In short the United States generally does not apply its taxes to the possessions. The precise outlines of the federal tax jurisdiction vary from territory to territory. And there are exceptions: Social Security taxes generally apply in the possessions.
The possessions apply their own tax systems. In some cases, their territorial tax systems are required to reflect federal tax provisions exactly: some possessions are required to apply so-called "mirror" tax systems. In other cases, however, the possessions' own tax systems depart significantly from federal tax rates and rules.