Ten Reasons for an Independent Puerto Rico

1. The Current Political Status Has Failed

Puerto Rico suffers from an unhealthy dependence on U.S. federal funds. A significant portion of the population relies on social assistance, with more than 40 percent of its residents participating in the Nutritional Assistance Program.

2. Becoming a State of the U.S.is Not Viable

Puerto Rico cannot become a state of the U.S. because, as a Latin American nation, it has a separate national identity. Moreover, as a U.S. state, Puerto Rican taxpayers would face possible financial ruin as a result of having to pay federal taxes to the U.S. For example, a Puerto Rico resident making $100,000 a year would get an 80% tax hike under statehood.

3. Ability to Foster Local Capital

Sovereignty gives nations the tools needed to promote the creation of local capital, something that Puerto Rico has never been able to achieve on a consistent basis under U.S. rule. Only with full control over its economic policies can Puerto Rico break away from its dependency on U.S. federal funds and move toward a prosperous, self-sufficient economy.

4. Having It’s Own Central Bank

With its own central bank, Puerto Rico would be better able to adapt to changes in the local economy and guide it in a way that promotes growth.

5. Control Over Territorial Waters

Under independence, Puerto Rico would be empowered to charge fees to those using its ports and to levy tariffs on goods entering the archipelago. This would bring significant revenue to Puerto Rico’s treasury, given that Puerto Rico imports approximately $55 billion in goods annually.

6. International Trade Agreements

If Puerto Rico were independent, it could make trade deals with other countries, which would open up significant business opportunities.

7. New Sources of Revenue

Under independence, Puerto Rico can develop its own sources of revenue. For decades, U.S. companies have repatriated about $36 billion in income generated in Puerto Rico each year. These companies did not pay taxes to Puerto Rico until 2010, when the government imposed a modest 4 percent tax. Under independence, a fair tax of 10 to 15 percent on these companies could help foster a self-sufficient economy.

8. It’s Own Currency

Upon gaining independence, Puerto Rico will have the power to establish its own monetary policy. A nation’s ability to determine its exchange rate is a critical component of its economic development, as it serves as a mechanism to increase exports and decrease imports.

9. Better Control of Cost of Living

Sovereignty gives Puerto Rico the necessary tools to protect its real estate market from foreign speculators and will have better control of excessive housing costs. In addition, its citizens would have access to cheaper markets, free from the U.S.’s excessive tariffs.

10. No Jones Act

Under independence, Puerto Rico would save approximately 1.5 billion per year because it would not be subject to the Jones Act, a law that grants a monopoly to U.S.-flagged cargo ships in Puerto Rico’s trade with the U.S.