DOCSLIB.ORG

Contents Índice

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Contents Índice CONTENTS ÍNDICE LETTER FROM THE PRESIDENT & CARTA DEL PRESIDENTE Y 3 9 CHIEF EXECUTIVE OFFICER PRINCIPAL OFICIAL EJECUTIVO 25-YEAR HISTORICAL FINANCIAL RESUMEN FINANCIERO HISTÓRICO 6 12 SUMMARY (25 AÑOS) MANAGEMENT & GERENCIA Y 8 14 BOARD OF DIRECTORS JUNTA DE DIRECTORES Popular, Inc. (NASDAQ: BPOP) is the leading financial Popular, Inc. (NASDAQ: BPOP) es la institución institution by both assets and deposits in Puerto bancaria líder en depósitos y activos en Puerto Rico and ranks among the top 50 U.S. bank holding Rico y se encuentra entre las primeras 50 entidades companies by assets. Founded in 1893, Banco Popular tenedoras de instituciones bancarias por número de Puerto Rico, Popular’s principal subsidiary, provides de activos. Fundado en 1893, Banco Popular de retail, mortgage and commercial banking services in Puerto Rico, la principal subsidiaria de Popular, Puerto Rico and the U.S. Virgin Islands. Popular also brinda servicios de banca individual, hipotecas y offers in Puerto Rico auto and equipment leasing and banca comercial en Puerto Rico e Islas Vírgenes financing, investment banking, broker-dealer and estadounidenses. Popular también ofrece en Puerto insurance services through specialized subsidiaries. Rico servicios de financiamiento de autos y equipo, In the mainland United States, Popular provides retail, inversiones y seguros a través de subsidiarias mortgage and commercial banking services through especializadas. En Estados Unidos, Popular provee its New York-chartered banking subsidiary, Popular servicios de banca individual, hipotecas y banca Bank, which has branches located in New York, New comercial a través de su filial bancaria en Nueva Jersey and Florida. York, Popular Bank, la cual cuenta con sucursales localizadas en Nueva York, Nueva Jersey y Florida. CORPORATE INFORMATION INFORMACIÓN CORPORATIVA Independent Registered Public Accounting Firm: Firma registrada de Contabilidad Pública PricewaterhouseCoopers LLP Independiente: PricewaterhouseCoopers LLP The company’s Form 10-K, proxy statement and any El Formulario 10-K, el proxy y otra información other financial information is available on financiera están disponibles en popular.com/en/investor-relations/annual-reports/ popular.com/accionistas/informe-anual/ ANNUAL MEETING REUNIÓN ANUAL The 2021 Annual Stockholders’ Meeting of La Reunión Anual de Accionistas de Popular, Inc. Popular, Inc. will be held on Thursday, May 6, se celebrará el jueves 6 de mayo de 2021 a las 2021, at 9:00 a.m. AST by means of remote 9:00 a.m. AST exclusivamente vía comunicación communication, in a virtual format only through remota, mediante formato virtual a través de www.virtualshareholdermeeting.com/BPOP2021. www.virtualshareholdermeeting.com/BPOP2021. 2 | POPULAR, INC. POPULAR, INC. YEAR IN REVIEW DEAR SHAREHOLDERS: The year 2020 was certainly a challenging one, starting with the earthquakes in the southwestern part of Puerto Rico, which were shortly followed by an unexpected global pandemic. Yet, despite all the professional and personal difficulties, we continued serving our customers, delivering value to our shareholders, supporting our colleagues, and providing much- needed services and assistance to our communities. We generated net income for the year of $507 million, 24% lower than the previous year. The decrease was largely driven by a higher provision expense, lower fees and lower net interest income related to the economic disruption caused by the pandemic. However, as business restrictions were loosened, the economy began to improve. Credit quality results remained positive throughout the year, notwithstanding the economic impact of the pandemic. We granted payment deferral assistance to approximately 132,000 customer accounts, representing $8.3 billion of loans or 28% of the total loan balance. At year-end, 97% of customers had exited payment relief programs and approximately 94% of these accounts remained current. While pleased with our results, given the uncertainty related to the pandemic, we continue to closely monitor developments in the health and economic fronts and their impact on our business. Capital levels remained strong with a year-end Common Equity Tier 1 ratio of 16.3%. Our robust capital position allowed us to increase the quarterly common stock dividend from $0.30 to $0.40 per share in the first quarter of 2020 and return $500 million to our shareholders through stock repurchases. Even with these actions, our tangible book value increased by nearly $8 or 14% per share to $63.07. The year 2020 was certainly a challenging one, starting Our stock closed 2020 at $56.32, 4% lower than in 2019. This performance with the earthquakes in compares favorably against the KBW Nasdaq Regional Banking Index, the southwestern part of which decreased by 12%, but underperformed versus our U.S. peers, who experienced an increase of 8% in their stock price. Puerto Rico, which were shortly followed by an Faced with the pandemic, we acted decisively to ensure the safety of unexpected global pandemic. our employees and customers while continuing to offer essential banking services. We adapted our operations in a rapidly evolving situation, leveraged the strength of our digital channels and provided support and relief to our customers in multiple ways. One of the most important efforts revolved around the Small Business Administration’s Paycheck Protection Program (PPP). Aware of the importance of the program for small and mid-sized businesses, we mobilized all resources at our disposal to process as many applications as possible. 2020 ANNUAL REPORT | 3 Despite the efforts devoted to managing We drew on talent from across the organization, pandemic-related matters, we continued developed new digital tools and streamlined our strengthening our business and executing processes to provide the much-needed help to our our strategy, which is structured around customers. In the first round, we funded $1.4 billion in four pillars. loans, representing 28,000 small and medium sized businesses and 278,000 employees. SUSTAINABLE AND PROFITABLE GROWTH In Puerto Rico, we grew loans by 7%, driven by an Last year, I shared that we had embarked on a process increase in commercial, auto and mortgage loans. to formalize our priorities regarding environmental, Deposits increased by 35%, registering growth in social, and governance (ESG) practices. As part of retail, commercial and public deposits. We expanded this process, we committed to establish specific our customer base on the island, adding 106,000 targets, track our progress, and communicate our new customers during the year. In the United States, results regularly. During 2020, we published our our loan portfolio grew by 8% and deposits by 2%. first Corporate Sustainability Report, an important We continued to expand niche businesses, mainly milestone in our journey towards greater transparency community association banking and health care and accountability. Another key achievement was the lending, and also achieved strong growth in our approval of a series of revisions to our commercial credit residential mortgage program. policy which formally incorporate ESG considerations into the credit analysis and evaluation processes. We SIMPLICITY believe these changes will result in more sustainable We continued to streamline our operations to credit decisions for the long-term well-being of our achieve efficiencies. We realigned our New York markets. Metro branch network, closing 11 branches, which will allow us to reduce operating expenses and While we are satisfied with our progress on this front, leverage resources to focus on small and medium we acknowledge there are opportunities to continue size businesses. After a pre-tax charge of $23 million expanding our efforts. To this end, we have created in 2020, we expect annual savings of approximately the Corporate Communications and Public Affairs $12 million moving forward. Group to integrate several existing functions at the company to achieve a unified and more impactful CUSTOMER FOCUS approach for strategic communications, government We continued reinforcing the areas of affairs, and ESG strategy. To lead this group, María communication, recognition, and collaboration Cristina González Noguera is joining Popular as our among our employees to ensure the sustainability Chief Communications and Public Affairs Officer. íMar a our service framework. We also leveraged the strength of our digital channels and saw an Cristina has extensive experience in both the public accelerated adoption that we believe will remain and private sectors. Most recently, she was the SVP of after the pandemic passes. In Puerto Rico, we Global Public Affairs at The Estée Lauder Companies reached 1.1 million active customers in our digital and was previously the Director of Communication banking platform, an increase of 154,000 customers to First Lady Michelle Obama and Special Assistant from 2019. In addition, we captured 67% of deposit to President Barack Obama. We are confident she transactions through digital channels, up from 52% will bring critical insights that will help us solidify our in the previous year. position as a leader in corporate sustainability. FIT FOR THE FUTURE I am extremely proud of our accomplishments Given the COVID-19 pandemic, we focused on during 2020. I am especially proud of our colleagues’ the well-being of our employees on all fronts. remarkable commitment to serve our customers and We implemented protective health measures, their ability to adapt to a rapidly changing environment,
Load more

Recommended publications
  • An Overview of the Special Tax Rules Related to Puerto Rico and an Analysis of the Tax and Economic Policy Implications of Recent Legislative Options
    AN OVERVIEW OF THE SPECIAL TAX RULES RELATED TO PUERTO RICO AND AN ANALYSIS OF THE TAX AND ECONOMIC POLICY IMPLICATIONS OF RECENT LEGISLATIVE OPTIONS ____________ Prepared by the Staff of the JOINT COMMITTEE ON TAXATION June 23, 2006 JCX-24-06 Contents Page INTRODUCTION .......................................................................................................................... 1 I. EXECUTIVE SUMMARY............................................................................................. 2 A. Introduction................................................................................................................ 2 B. Overview of the U.S. Tax and Non-Tax Rules Related to U.S. Possessions............. 2 C. Special Tax Rules Related to Puerto Rico ................................................................. 3 D. Statehood, Commonwealth, and Independence Status .............................................. 5 E. Economic Analysis.................................................................................................... 5 F. Legislative Options.................................................................................................... 6 II. PRESENT LAW TAX PROVISIONS RELATED TO PUERTO RICO AND OTHER U.S. POSSESSIONS ....................................................................................... 13 A. Overview of U.S. Tax Provisions Relating to Puerto Rico...................................... 13 1. In general..........................................................................................................
    [Show full text]
  • The House Report
    821) CONGRESS OUSE OF REPRESENTATIVES '.' REPOR d Session f No. 1832 APPROVING THE CONSTITUTION OF THE COMMON- WEALTH OF PUERTO RICO WHICH WAS ADOPTED BY TIHE PEOPLE OF PUERTO RICO ON MARCH 3, 1952 ArnI. 30, 1952.-Committed to tho Committee of the Whole House on the State of tho Union and ordered to be printed Mr. MURDOCK, from the Committee on Interior and Insular Affairs, submitted the following R E P O R T [To accompany II. J. Res. 430] The Committee on Interior and Insular Affairs, to whom was referred the joint resolution (II. J. Res. 430) approving the Constitution of tlhe Commonwealth of Puerto Rico which was adopted by the people of Puerto Rico on March 3, 1952, having considered the same, report favorably thereon without amendmenCl(lllt and recommend that the joint resolution (10 pass. The enactment into law of House Joint Resolution 430, which approves the Constitution of Puerto Rico adopted by thlo people of Puerto Rico in a referendum on March 3, 1952, constitutes the latest of a series of enactments through which the Federal Government lias provided ever-increasing self-government in Puerto Rico. ADVANCEIMENT' OF 8ISELF-GOVERINMIENT IN PU1EWITO rICO Puerto Rico was coded to the United States by Spain under the terms of the Treaty of Paris in 1898, which followed the Spanish- American War. The island continued under military government of the United States until Congress passed the Foraker Act in 1900, which was an act temporarily to provide revenues tand civil govern- mont for Puerto Rico. Under this first organic act the affairs of Puerto Rico were administered by a Governor appointed by the President of the United States and six department heads and justices of the supreme court, likewise appointed by the Prjinlent.
    [Show full text]
  • Special Source Rules Applicable to Certain Gains of Former United States Residents ° 1
    Tax Special source rules Residents applicable to certain gains Taxpayers of former United States residents March 22, 2021 Note: All legal references are to applicable sections of the United States Internal Revenue Code of 1986 and the regulations issued thereunder, unless expressly stated otherwise. One of the appealing aspects of becoming a bona fide resident of Puerto Rico (“BFR-PR”) from a tax perspective lies in the United States federal tax treatment of certain items of income derived by Puerto Rico residents. This article focuses on the federal income tax implications of certain capital gains derived by a new BFR-PR that previously resided in the United States. As a general rule, capital gains on the sale or exchange of personal property by a BFR-PR are excluded from US income tax under §933 and §865(a). However, special rules apply to gains resulting from the sale of certain property owned by the individual before establishing Puerto Rico residency (“Previously Owned Property”) and sold within 10 years of the move. Any individual that falls within the scope of these rules should understand its tax impact and prepare to report gains derived from transactions of Previously Owned Property in the corresponding income tax return. This reading does not pretend to offer an extensive discussion of all questions that may arise in connection to Previously Owned Property and a new BFR-PR. Instead, our intention is to provide some basic guidance on the federal tax implications that the sale of Previously Caroline López, CPA, Esq. Owned Property may trigger to some BFR-PR and provide a general overview of the interplay Tax Manager of these rules with virtual currencies.
    [Show full text]
  • Community, Family and Youth Resilience (CFYR) Program Annual Report October 1, 2018 to September 30, 2019
    Community, Family and Youth Resilience (CFYR) Program Annual Report October 1, 2018 to September 30, 2019 Submission Date: October 30, 2019. Updated December 18, 2019. Submitted by: Creative Associates International 1 ACRONYMS AND ABBREVIATIONS AAA - Action and Advocacy Agenda BLES - Basic Life and Employability Skills CARICOM – Caribbean Community CSWC - Charlotte Street Wesleyan Church COP - Chief of Party CEC - Community Enhancement Committees CFYR - Community, Family and Youth Resilience Program CSP - Community Safety Plan CLC - Critchlow Labour College DQA - Data Quality Assessment DCOP – Deputy Chief of Party DPP - Director of Public Prosecution FACES - Family Adaptability and Cohesion Scales FACT - Family Awareness Consciousness Togetherness FGD – Focus Group Discussion FYCW - Family and Youth Community Worker JJR – Juvenile Justice Reform LOP - life of program MoCD - Ministry of Community Development, Gender Affairs and Social Services (St. Kitts) MoE - Ministry of Equity, Social Justice, Empowerment and Local Government (Saint Lucia) MoPT - Ministry of Public Telecommunications (Guyana) MoSP - Ministry of Social Protection (Guyana) NOC – New Opportunity Corps NIA - Nevis Island Administration PIFSM - Prevention and Intervention Family Systems Model RLE - Regional Learning Exchange 2 RLN - Regional Learning Network RLIC - Ruimveldt Life Improvement Centre SCP - Social Crime Prevention SDCP - Social Development and Crime Prevention SLHTA - Saint Lucia Hospitality & Tourism Association SLS - Social and Leadership Skills SSDF - Saint
    [Show full text]
  • EXECUTIVE SUMMARY Economic Development in Puerto Rico Faces Unprecedented Challenges
    EXECUTIVE SUMMARY Economic Development in Puerto Rico faces unprecedented challenges ECONOMIC CONTRACTION IRMA & MARIA HURRICANES The economy of Puerto Rico has been The magnitude of the devastation on the contracting for more than a decade. It has Island caused by the hurricanes Irma and a debt that exceeds 100 percent of its María is historic and demands an annual economic output and has caused extraordinary response for Puerto Rico to get fiscal liquidity and solvency challenges. back on its feet. PROMESA FEDERAL TAX REFORM The approval of PROMESA in 2016 has The federal tax reform (Tax Cuts & Jobs Act) created a certain lack of clarity regarding will have an impact, both on our current governance matters, which in turn may manufacturing base, and on the promotion impact our business climate. Uncertainty is strategies and incentives use to attract not good for local or external investors. foreign investment to the island. EVOLUTION OF PUERTO RICO’s ECONOMY IN THE PAST 70 YEARS ADVANCE MANUFACTURING, KNOWLEDGE ECONOMY, AGRARIAN ECONOMY INDUSTRIAL ECONOMY SERVICES Sugar cane, tobacco & coffee Petro-chemical, electronics, Life Sciences, Aerospace, Technology, apparel & textiles, Agro Tech Industries, Export Services, pharmaceuticals Tourism/Visitor’s Economy < 1950’s 1950-1990’s > 2000’s O U R E C O N O M Y TODAY GROSS DOMESTIC PRODUCT SHARE BY MAIN ECONOMIC SECTOR GPN $70.1 billion FISCAL YEAR 2017 GDP $105.0 billion Construction & Mining GDP PER CAPITA $30,516 0.9 Utilities 2.1 0.8 Agriculture EXPORTS VALUE $71.9 billion Government IMPORTS
    [Show full text]
  • Understanding the Urgent Need for Subtitling for the Deaf and Hard of Hearing in the Spanish-Speaking Greater Antilles
    Understanding the Urgent Need for Subtitling for the Deaf and Hard of Hearing in the Spanish-Speaking Greater Antilles Adrián Fuentes-Luque Universidad Pablo de Olavide Pabsi Livmar González-Irizarry Universidad Pablo de Olavide _________________________________________________________ Abstract Citation: Fuentes-Luque, A. & González- Even though audiovisual translation (AVT) is growing and flourishing Irizarry, P.L.. (2020). Understanding the throughout the world, it is practically unheard-of in the Caribbean, Urgent Need for Subtitling for the Deaf and Hard of Hearing in the Spanish- where accessibility faces an even bleaker existence. The circumstances Speaking Greater Antilles. Journal of of the deaf and hard of hearing (also referred to as D/deaf) are no less Audiovisual Translation, 3(2), 286–309. alarming: social barriers and exclusion are widespread. This paper Editor(s): A. Matamala & J. Pedersen emphasizes the need to make subtitles accessible in the Spanish- Received: February 1, 2020 speaking Caribbean, specifically on the islands of Puerto Rico, Cuba, and Accepted: July 22, 2020 the Dominican Republic, and underscores the challenges faced by the Published: December 21, 2020 D/deaf communities on each island. Our research focuses on issues like Copyright: ©2020 Fuentes-Luque & AVT laws and regulations, the habits of viewers of audiovisual (AV) González-Irizarry. This is an open access products, and literacy and limitations on each island. This paper also article distributed under the terms of the examines the different types of D/deaf audiovisual consumers in the Creative Commons Attribution License. This allows for unrestricted use, Spanish-speaking Caribbean and the difficulties each community faces distribution, and reproduction in any when accessing media and entertainment.
    [Show full text]
  • An Introduction to Puerto Rico
    This page was intentionally left in blank. 2 Table of Contents Chapter 1: An Introduction to Puerto Rico .................................................... 8 1. Historical Overview .......................................................................................................... 8 2. Geography ....................................................................................................................... 8 3. Government Systems ...................................................................................................... 8 4. Demographics.................................................................................................................. 9 5. Language ......................................................................................................................... 9 6. Currency and Monetary Policy ...................................................................................... 10 7. Macroeconomic Overview and Key Indicators ............................................................ 10 A. Gross Domestic Product (GDP) ........................................................................... 10 B. Work Force ............................................................................................................ 11 C. External Trade ....................................................................................................... 11 D. Retail Sales.............................................................................................................11 E. Consumer Price Index
    [Show full text]
  • Incentive Regulation Code English AK
    GOVERNMENT OF PUERTO RICO DEPARTMENT OF ECONOMIC DEVELOPMENT AND COMMERCE SAN JUAN, PUERTO RICO INCENTIVE REGULATION MO-DEC-013 SEPTEMBER 2020 TABLE OF CONTENTS CONTENT PAGES PREAMBLE 5 SUBTITLE A. - GENERAL PROVISIONS 7 Ar6cle 1000.01-1. - Title 7 Ar6cle 1000.01-2. - Legal Basis 7 Ar6cle 1000.01-3. - Scope 7 Ar6cle 1000.01-4. - Purpose 7 Ar6cle 1000.01-5. - Terms Used 8 Ar6cle 1000.02-1. - Classifica6on 8 Ar6cle 1000.02-2. - Organiza6on 8 Ar6cle 1000.04(e)-1. - Most Favorable Terms and Condi6ons; Interrela6onship with other Laws 9 CHAPTER 1. - RESERVED 10 CHAPTER 2 - DEFINITIONS 10 SUBCHAPTER A. - GENERAL DEFINITIONS 10 SUBCHAPTER B. - DEFINITIONS APPLICABLE TO INDIVIDUALS 25 SUBCHAPTER C. - DEFINITIONS APPLICABLE TO EXPORTS OF GOODS AND SERVICES 27 SUBCHAPTER D. - DEFINITIONS APPLICABLE TO FINANCE, INVESTMENT AND INSURANCE 34 SUBCHAPTER E. - DEFINITIONS APPLICABLE TO VISITOR ECONOMY 35 SUBCHAPTER F. - DEFINITIONS APPLICABLE TO MANUFACTURING 54 SUBCHAPTER G. - DEFINITIONS APPLICABLE TO INFRASTRUCTURE AND GREEN OR HIGHLY EFFICIENT ENERGY 55 SUBCHAPTER H. - DEFINITIONS APPLICABLE TO AGRO-INDUSTRIES 56 SUBCHAPTER I. - DEFINITIONS APPLICABLE TO CREATIVE INDUSTRIES 59 SUBCHAPTER J. - DEFINITIONS APPLICABLE TO OTHER INDUSTRIES 63 SUBTITLE B. - ECONOMIC DEVELOPMENT INCENTIVES 65 CHAPTER 1. - INCENTIVES OF GENERAL APPLICATION 65 SUBCHAPTER A. - GENERAL RULE ` 65 SUBCHAPTER B. - SMALL AND MEDIUM-SIZED ENTERPRISES (SMES) 66 SUBCHAPTER C. - VIEQUES AND CULEBRA 67 SUBCHAPTER D. - OTHER INCENTIVES 68 CHAPTER 2. - INDIVIDUALS 71 SUBCHAPTER A. - ELIGIBILITY 71 SUBCHAPTER B. - RESERVED 74 SUBCHAPTER C. - REGISTRATION FOR THE CONCESSION OF EXEMPTION 74 SUBCHAPTER D. - SPECIAL PROVISIONS 74 CHAPTER 3. - EXPORT OF GOODS AND SERVICES 75 SUBCHAPTER A. - ELIGIBILITY 75 SUBCHAPTER B.
    [Show full text]
  • DIRECTORY a GOLDEN OPPORTUNITY It Is with Great Pleasure I Welcome You to the 2013 ICSC Caribbean Conference Being Held in San Juan, Puerto Rico
    DIRECTORY A GOLDEN OPPORTUNITY It is with great pleasure I welcome you to the 2013 ICSC Caribbean Conference being held in San Juan, Puerto Rico. We come from a fantastic region, unique in the world. We are united by a common history, a vibrant present and a bright and promising future. From the Gulf of Mexico, through Central America to the northern area of South America; continuing on our journey, the region is interlaced with heavenly islands which, like pearls emanating from the sea, make up an extraordinary gem, famous in the world for its wealth in cultural diversity. This is Puerto Rico, this is the Caribbean Conference, where there is no other conference like it. Where we are going to feel at home and have the golden opportunity to meet with industry professionals of the most important shopping centers in this region, to network, share experiences, projects and visualize together our future. We look forward to another successful conference this year with great speakers and informative sessions. I hope that you also take advantage of meeting, networking and doing deals with this year’s exhibitors at the Trade Exhibition. I am excited that you can join us and hope to meet you during the conference. Alfredo Cohen ICSC Trustee, 2013 Caribbean Conference Program Planning Committee Chair Director Constructora Sambil Caracas, Venezuela GOLD SPONSORS SILVER SPONSOR BRONZE SPONSOR February 4–6, 2013 • Puerto Rico Convention Center • San Juan, Puerto Rico government finances. Now, signs of revival in economic activity MONday, FEBRuary 4, 2013 in the Caribbean are emerging. Nevertheless, while the recovery continues to move forward, growth globally is moving to a 8:00 am – 7:00 pm weaker, rather than a stronger, performance profile, thereby limiting Caribbean longer-term economic prospects.
    [Show full text]
  • U.S. Tax Imperialism
    Seattle University School of Law Digital Commons Faculty Scholarship 2015 U.S. Tax Imperialism Diane Lourdes Dick Follow this and additional works at: https://digitalcommons.law.seattleu.edu/faculty Part of the Tax Law Commons Recommended Citation Diane Lourdes Dick, U.S. Tax Imperialism, 65 Am. U. L. Rev. 1 (2015). https://digitalcommons.law.seattleu.edu/faculty/729 This Article is brought to you for free and open access by Seattle University School of Law Digital Commons. It has been accepted for inclusion in Faculty Scholarship by an authorized administrator of Seattle University School of Law Digital Commons. For more information, please contact [email protected]. ARTICLES U.S. TAX IMPERIALISM IN PUERTO RICO DIANE LOURDES DICK* This Article uses historical and legal analysis to demonstrate how U.S. domination over Puerto Rico's tax and fiscal policies has been the centerpiece of a colonial system and an especially destructive form of economic imperialism. Specifically, this Article develops a novel theory of U.S. tax imperialism in Puerto Rico, chronicling the sundry ways in which the United States has used tax laws to exert economic dominance over its less developed island colony. During the colonial period, U.S. officials wrote and revised Puerto Rican tax laws to serve U.S. economic interests. In more recent years, U.S. tax laws have disadvantagedPuerto Ricans, who still lack voting rights and full democratic representation in Congress. A theory of tax imperialism may also have applicationfar beyond the U.S.-Puerto Rican experience. For instance, it may help us understand the relationships between the United States and its other possessions and territories throughout history, and between the United Kingdom and its British Crown dependencies, overseas territories, and newly-independent colonies.
    [Show full text]
  • Puerto Rico: Continuing Socio-Economic Deterioration and the Need for Change
    PUERTO RICO: CONTINUING SOCIO-ECONOMIC DETERIORATION AND THE NEED FOR CHANGE J. Tomas Hexner President of Hex, Inc. Founder and director, Science Initiative Group at the Institute for Advanced Study at Princeton, New Jersey Arthur MacEwan Professor Emeritus of Economics at the University of Massachusetts Boston Development Discussion Paper: 2017-12 ABSTRACT The long-run decline of the Puerto Rican economy, predating the recession of the last decade, is evident in the relative stagnation that emerged from 1980 onward. The roots of both the relative stagnation and the long recession lie in the political status of the island. The option of statehood, however, can be the foundation for a new era of economic expansion. The long-lasting economic problems of Puerto Rico are evidenced by several measures: the low rate of economic growth, the high unemployment rate and the low labor force participation rate, the falling investment rate, the high poverty level, the extreme degree of economic inequality, and the massive exodus to the states. And, of course, there is the very high—crisis level— amount of public debt. In addition and of central importance, the poor treatment of Puerto Rico relative to the states by the U.S. government has contributed to the economic situation on the island and demonstrates the role of status in bringing about economic weakness and decline. The popular belief that Puerto Rico receives ―generous‖ treatment from Washington is belied by the data. Moreover, while many observers viewed Puerto Rico as an economic success story during the late 1900s, this view erred in measuring success by the growth of GDP instead of GNP, the former including the profits of firms based off the island (mainly in the U.S.) and not providing a measure of economic conditions of Puerto Rican people of firms.
    [Show full text]
  • PUERTO RICO RELOCATION GUIDEBOOK PUERTO RICO PUERTO RICO RELOCATION GUIDEBOOK RELOCATION by ELOCATE GUIDEBOOK by Second Edition, 2021 ELOCATE
    PUERTO RICO RELOCATION GUIDEBOOK RICO RELOCATION PUERTO PUERTO RICO PUERTO RICO RELOCATION GUIDEBOOK RELOCATION BY ELOCATE GUIDEBOOK BY Second Edition, 2021 ELOCATE PRelocate is one of a select few government licensed Qualified Promoters under the Act 60 (formerly Acts 20/22) tax decree program. Extensive FAQ, Real Estate Overview, Our mission is to help individuals and businesses minimize the time and Compliance and cost of moving to Puerto Rico, from when they first consider the Best Practices idea to when they relocate. As successful entrepreneurs who moved to Puerto Rico several years Second ago, we saw an opportunity to assist future relocators. We provide Edition subject-matter expertise on the relocation process so you can focus 2021 on other priorities: your business, your family, your life. To help you conduct diligence and quickly determine whether Puerto Rico is right for you, we’ve distilled Learn How to Move to Puerto Rico and Pay 4% the latest and most important information Corporate Income Tax and 0% Capital Gains Tax about relocation into this easy-to-use guide. MICHAEL SAMUEL B. SCHOENFELD SILVERMAN Free Downloads & Templates EL OC AT Visit RelocatePuertoRico.com E SAMUEL B. SILVERMAN MICHAEL SCHOENFELD Call 787-503-8184 Puerto Rico Relocation Guidebook PRelocate 2 The Official PRelocate Guidebook, Second Edition Copyright © 2021 by PRelocate, LLC Miramar Plaza, 954 Avenida Ponce de Leon, Suite 205 San Juan, Puerto Rico 00907 https://relocatepuertorico.com 787-503-8184 All rights reserved. No part of this book may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage, dissemination, and/or retrieval system without prior written permission from the Author.
    [Show full text]