Therefore I have rapidly developed what might be called a professional curiosity about what goes on. This speech is in the nature of a very preliminary report. First. why can Puerto Rico offer Federaltax exemptions to emigrant mainland industries? The first step was taken approximately 36 years ago in the Organic Act. which provided that residents of Puerto Rico. who by the act also became American citizens. would not be subject to the Federal income tax. However. the real gimmick appeared in 1950. when the law was changed to provide that citizens born or naturalized anywhere in the United States. but who later became residents of Puerto Rico. could enjoy the same exclusion privilege with respect to income earned from sources within Puerto Rico. A similar privilege was provided for corporations. These provisions were affirmed in the 1954 Revenue Act. specifically by sections 931. 932. and 933 of the Internal Revenue Code of 1954.
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emigrant naturalized