Congresswoman Bush Joins Congresswoman Ramirez, Local Leaders Call for an End to the Tax Evasion Driving Puerto Rico’s Crisis of Displacement
Washington, D.C. (October 25, 2024) — Yesterday, Congresswoman Cori Bush (MO-01) joined Representatives Delia C. Ramirez (IL-03), Congresswoman Nydia Velázquez (NY-07) and Alexandria Ocasio-Cortez (NY-14), in announcing the introduction of United with Puerto Ricans Opposed to Act 22 Risks (UPROAR) Act. The UPROAR Act urges the Puerto Rican and federal governments to address Act 22 and stop the exploitation of federal tax loopholes that result in millions in lost revenues for local communities.
Created to incentivize investment in the Puerto Rican economy, Act 22, now part of Act 60, has created a tax haven for American millionaires and billionaires, allowing them to avoid federal and local taxes. According to reports, Act 22 beneficiaries are raising housing costs and displacing Puerto Ricans, endangering important nature reserves and historical sites, destabilizing the island's already weak electrical grid, and influencing local elections through unprecedented donations.
Recently, the IRS revealed to Congress that 647 Americans who received the benefits of Act 22 paid $557,978,112 in federal taxes during the five years before moving to Puerto Rico, representing million-dollar losses for the federal government and the social programs that are supported by them. Likewise, the government of Puerto Rico estimates that the island will lose around $4.5 billion in income between 2020 and 2026 due to Act 22.
“I proudly join in solidarity with my colleagues and the advocates and community members from across the Puerto Rican diasporas who are speaking out against the Act 22 tax loophole,” said Congresswoman Bush. “This policy is a handout to wealthy tax evaders moving to Puerto Rico and could cost the island an estimated $4.5 billion in tax revenues from 2020 to 2026. The loophole has exacerbated the housing crisis and increased displacement of Puerto Rican residents. This Resolution is a crucial step toward protecting the future of Puerto Rico and its communities. It's time for Congress to demand accountability for the tax evasion created by Act 22 while supporting the self-determination of the Puerto Rican people.”
“As Congress prepares to debate the funds available for safety net programs, we must urgently address Act 22 in Puerto Rico and the exploitation of federal tax loopholes that allow wealthy Americans to avoid their responsibility to pay local and federal taxes. I am proud to join a community of organizers in my district and Puerto Rico to introduce a resolution that puts tax evaders on notice. Enough is enough,” said Congresswoman Ramirez. “From Puerto Rico to IL-03, our communities deserve accessible housing, access to their lands, and an economy and democracy that works for them.”
“Act 22 has caused unprecedented damage in Puerto Rico, fueling displacement, rising prices, and reckless development across the island. At the same time, the law has led to tax avoidance on the mainland, depriving the federal government of billions of dollars of critical revenue. From the IRS to Congress, we need a whole of government approach to examine how this law is hurting Puerto Ricans and take action to mitigate its damage. I was proud to work with Representatives Ramirez and Ocasio-Cortez to elevate this issue and urge the federal government to increase oversight and transparency around this predatory law,” said Congresswoman Nydia M. Velázquez.
In addition to Congresswoman Bush, the resolution is cosponsored by Reps. Ro Khanna (CA-17), Raul Grijalva (AZ-07), Dan Goldman (NY-10), Adriano Espaillat (NY-13), Rashida Tlaib (MI-12), Barbara Lee (CA-12), Jim McGovern (MA-02).
“Wealthy Americans moving to Puerto Rico are driving up the cost of living while not having to pay their fair share due to federal tax loopholes. I’m proud to join Congresswoman Ramirez to close these loopholes that are depriving Puerto Rico’s schools and infrastructure of critical funding,” said Congressman Ro Khanna.
The UPROAR resolution is endorsed by local, national, and Puerto Rican organizations like Alianza for Progress, Power 4 Puerto Rico, Puerto Rican Agenda, Puerto Rican Cultural Center, Losing Puerto Rico, El Otro Puerto Rico, the National Puerto Rican Agenda, Esperanza, Popular Democracy, Construyamos Otro Acuerdo, Ayuda Legal Puerto Rico, Sembrando Sentido, Coalición PR No Se Vende, Vamos PR, Sindicato Puertorriqueño de Trabajadores (SPT), Mi Patria, Boricuas Unidos en la Diáspora (BUDPR), New York Communities for Change (NYCC), Vocal New York, Churches United for Fair Housing (CUFFH), and Hedge Clippers.
Read the full resolution here.
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