Friday, July 25, 2014


Territories Eliminated from Obama Care
Juy 21, 2014
The White House issues another illegal exemption.
Last week's burst of world disorder was ideal for a news dump, and the White House didn't disappoint: On no legal basis, all 4.5 million residents of the five U.S. territories were quietly released from ObamaCare. Where does everybody else apply?

The original House and Senate bills that became the Affordable Care Actincluded funding for insurance exchanges in these territories, as President Obama promised when as a Senator he campaigned in Puerto Rico, the Virgin Islands and other 2008 Democratic primaries. But the $14.5 billion in subsidies for the territories were dumped in 2010 as ballast when Democrats needed to claim the law reduced the deficit.

As a consolation, Democrats opened several public-health programs to the territories and bestowed most of ObamaCare's insurance regulations, which liberals euphemize as "consumer protections," such as requiring insurers to accept all comers and charge the same premiums regardless of patient health. "After a careful review of the law," said Health and Human Services in a 2012 letter, HHS granted the territories' request to apply these rules "to the maximum extent permitted by law."

Thursday, July 24, 2014

CORPORATE WELFARE - “I don’t care if it’s legal,” Obama declared. “It’s wrong.”

Obama wants limits on tax-driven mergers by US companies overseas

AP - July 24,2014
LOS ANGELES — Staking out a populist stand ahead of the midterm elections, President Barack Obama on Thursday demanded “economic patriotism” from U.S. corporations that use legal means to avoid U.S. taxes through overseas mergers.

“I don’t care if it’s legal,” Obama declared. “It’s wrong.”

Obama and congressional Democrats are pushing to severely limit such deals, a move resisted by Republicans who argue the entire corporate tax code needs an overhaul. At issue are companies that enter into arrangements with foreign companies, shifting their tax addresses overseas while retaining their U.S. headquarters.

“They’re technically renouncing their U.S. citizenship. They’re declaring they are based someplace else even though most of their operations are here,” Obama said at a technical college in Los Angeles. “You know, some people are calling these companies corporate deserters.”


The use of the US Territory of Puerto Rico as an offshore tax shelter for US Corporations is the reason why Puerto Rico has not been admitted as a State of the Union. The beneficiaries of this enormous tax evasion scheme have used their power and money to prevent PR from becoming a state.

That's why my 30-year battle against this outrageous Tax Evasion Benefit. Corporate Welfare and Special Tax breaks for the rich, have benefited a few for almost a century and kept the US Citizens of Puerto Rico, a territory of the US, without basic rights.

Today I am proud to say that Corporate Welfare seems to be coming to an end.  We thank all our anonymous advisers and supporters who have never given up and help along this very difficult way. The battle is not yet won... but remember, this is a David vs Goliath fight. We thank Luis and Jose and others. You know who you are...

Puerto Rico a US Territory with US citizens for over 100 years is the largest victim of Corporate Greed. Greedy politicians in Puerto Rico, a US Territory of American citizens, in alliance with interested sectors in the island, including corporate lobbyists, CFC's, the local opposition parties, workers unions, local Banks, etc. have lobbied Congress for decades to obtain tax exempt privileges for US Corporations who do business in Puerto Rico. 

This has consisted in obtaining legislation that created IRS Codes to define Puerto Rico as a foreign country for tax benefit purposes. CFC (Controlled Foreign Corporations) does not mean they are foreign, it means Puerto Rico is foreign! This is a legal violation of the US Constitution Territorial Clause. 
Obama presses to close corporate tax loophole 'inversions'
LOS ANGELES, July 24 Thu Jul 24, 2014 6:00am EDT

U.S. President Barack Obama will call for an end to a corporate loophole that allows companies to avoid federal taxes by shifting their tax domiciles overseas in deals known as "inversions," White House officials said.

Obama will make the comments during remarks about the economy at Los Angeles Technical College. The president is in California on a three-day fundraising swing for Democrats. 

So-called inversion deals occur when a U.S. company acquires or sets up a foreign company, then moves its U.S. tax domicile to the foreign company and its lower-tax home country.

Nine inversion deals have been agreed to this year by companies ranging from banana distributor Chiquita Brands International Inc to drugmaker AbbVie Inc and more are under consideration. The transactions are setting a record pace since the first inversion was done 32 years ago.

Several Democrats have offered bills to curb inversions, which let companies cut their taxes primarily by putting foreign earnings out of the reach of the Internal Revenue Service. Obama will throw his weight behind the Democratic bills, calling for a rule change that would deem any company with half of its business in the United States to be U.S.-domiciled.

The proposed changes, already put forward in Obama's annual budget, would be retroactive to May of this year and implemented independently of moves to achieve broader tax reform. 

"We have seen increased activity from companies in the inversion space and as a result the president's view ... is that we should be acting as quickly as possible," a White House official told reporters on a conference call. "That will buy us more time and space to ... reform our tax code as a whole."

Republicans prefer a change to inversions to be part of an effort to reform the U.S. tax code. The White House supports broad tax reform but argues that action on inversions is needed now.
"We can't afford to wait to reform our tax code completely to deal with inversion," the official said, adding that such deals would cost the United States an estimated $17 billion in revenue over the next decade. (Additional reporting by Kevin Drawbaugh in Washington; Editing by Ron Popeski)

* ELA - ESTADO LIBRE ASOCIADO - US Territory of Puerto Rico

Wednesday, July 23, 2014


Puerto Rico court ordered to hear Doral case against govt 'immediately'
By Kieran Lonergan - Wednesday, July 23, 2014
Puerto Rico's supreme court ordered the territory's court of first instance to proceed 'immediately' with local bank Doral's case against the government.
Puerto Rico's economic woes worry bondholders
Jul 23, 2014 6:41 By JOEL WALDMAN, @joelwaldmanfox5
Puerto Rico just balanced its first budget in more than a decade. Sales taxes are up. But optimism remains low when it comes to those making financial investments in the commonwealth.

Maglan Capital hedge fund managers David Tawil and Steven Azarbad seem to think Puerto Rico itself is not in any imminent financial danger, just its major utility companies. So why is this news to you? The simple answer: Puerto Rico is a major player when it comes to what Wall Street investors are interested in. It is one of the most prolific bond issuers in the United States, with $70 billion in outstanding debt, Tawil said.

The IRS has allowed Puerto Rico to issue bonds on a triple tax-free basis, meaning you can buy Puerto Rico debt free of federal, state, and city taxes.

But, with its major utility companies -- Puerto Rico Electric Power Authority to the Puerto Rico Aqueduct and Sewer Authority -- on the financial precipice and downgrades from the major U.S. ratings companies, Wall Street is scared of Puerto Rico impacting the entire mutual fund and bond markets. That would more than likely affect some of your investments, too, because the debt could be held in your 401(k) or other municipal bond mutual fund you may own.

Justin Velez Hagan, the founder of the National Puerto Rican Chamber Commerce and an economic policy researcher at the University of Maryland, said that it has been bad for most owners of bonds in Puerto Rico.