What drawbacks would happen if Puerto Rico is a US state?

Answer 1

The main drawback for Puerto Rican citizens is they would no longer be exempt paying from Federal income tax on money earned in Puerto Rico. To be clear, Puerto Ricans pay PLENTY of taxes to the Federal government in payroll, Social Security, Unemployment, capital gains, interest income tax, and every other type of federal taxes on all income earned. Puerto Rican residents also pay federal income tax on money earned anywhere off the island. And they also pay massive state and municipal taxes. So the loss of the Federal income tax exemption is not a little thing.

Many companies that have located factories and other facilities in Puerto Rico for tax abatements would be likely to lose these tax cuts. This could cause an economic downturn on the island if businesses move out.

Another perceived disadvantage to Statehood, and really the biggest issue to many, is the alleged loss of cultural identity. Many people who vote against statehood do so because they believe that doing so would be turning their back on the 500 year-old Puerto Rican culture and way of life. This is something that is hard to battle with facts. It is an emotional argument with little to support it since Puerto Rico is in just about every other respect as much a part of the US as the District of Columbia already, but none-the-less it is very real to those who feel this way.

The main drawback for the US Government is purely political. Puerto Rico is overwhelmingly Democratic (as opposed to Republican). If Puerto Rico would become a state, it is estimated that it would have 6 or 7 representatives in the US House of Representatives and, of course, two Senators. Chances are that 5 or 6 of not all the Representatives and both Senators elected would be Democrats. This would tip the balance of power in the House and Senate as it stands right now.

Another drawback for the US government is that the aide programs would get larger in order to meet the same levels as other states receive on a per-capita basis. The aide that PR would receive in health, human services, education, infrastructure, etc would be more than what the Federal government would receive in new income taxes.

Answer 2

Absolutely nothing, It should actually gain from acquiring statehood. The present economic situation of the island called "commonwealth" is parallel with that of a spanish colony of the 1500's. Many politicians and experts have denounced the US dominion over Puerto Rico as a form of neocolonialism. We aren't given the resources necessary to kick start an economic growth in the territory, at the same time the US and US corporations receive a major percentage of wealth from the island's tourism, pharmaceutical, and of course from the people's consumerism.

Many corporations, especially pharmaceuticals aren't federally taxed here in the island like they are in US, because we aren't a state or a free country we cannot decide to tax them for our own financial gain. This is a problem, because the wealth cultivated in the island, the people don't see a penny of it, or see a very low percentage. The Puerto Rican people have to decide if they want to keep living under these circumstances or make a firm decision and with democracy change the path they want their country to follow.

In November 6, 2012 a plebiscite will ask the Puerto Rican population if they agree with the current status of the island, and if they don't agree they have to choose between: ELA soberano (Sovereign Commonwealth), Estadidad (Statehood) or Independence.