US Multinationals in Puerto Rico and the Repeal of Section 936 Tax Exemption for U.S. Corporations

Feliciano, Zadia M.; Green, Andrew

doi:10.3386/w23681

Cited by 11 publications

(11 citation statements)

References 6 publications

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“…One of these altering economic changes was the derogation of Section 936 of the 1976 U.S. Internal Revenue Code in 2006 (Feliciano & Green, 2017). Under Section 936, U.S. companies who relocated to Puerto Rico were exempt from paying federal taxes on all remitted income (Feliciano & Green, 2017). These companies were also incentivized with cheap Puerto Rican labor (Cabán, 1989).…”

Section: Premigration Economymentioning

confidence: 99%

“…Meanwhile, members of the United States congress started to challenge Section 936 over concerns of lost tax revenue and the belief that the law was unfair to U.S. taxpayers 2 (Cabán, 2002). The U.S. Congress eventually derogated Section 936 in 1996 and phased it out within 10 years (Feliciano & Green, 2017). Around the same time, international trade agreements signed by the United States began allowing more pharmaceutical imports into the United States (Merling et al, 2017).…”

Section: Premigration Economymentioning

confidence: 99%

“…The 2006–2017 Puerto Rican migration wave is primarily linked to compounding U.S. economic actions that proved catastrophic for the island’s economy and standard of living (Feliciano, 2018; Krogstad, 2016; Merling, Cashman, Johnston, & Weisbrot, 2017). One of these altering economic changes was the derogation of Section 936 of the 1976 U.S. Internal Revenue Code in 2006 (Feliciano & Green, 2017). Under Section 936, U.S. companies who relocated to Puerto Rico were exempt from paying federal taxes on all remitted income (Feliciano & Green, 2017).…”

Section: Premigration Economymentioning

confidence: 99%

See 2 more Smart Citations

“It hurts but it’s the thing we have to do”: Puerto Rican colonial migration.

Gonzalez

Rosario

Abreu

et al. 2021

Journal of Latinx Psychology

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The current study used a theoretical triangulation approach to understand the premigration conditions, migration reasons, and migration decision making of Puerto Ricans who migrated to the United States between 2006 and 2017. The following research questions guided the current study: How was life in Puerto Rico for participants before migrating to Florida?; How do participants' make sense of the island's current conditions?; What contributed to participants' decision to migrate to Central Florida?; and What was the role of family in the participants' decision to migrate? Two focus groups were conducted (N ϭ 22) with Central Florida Puerto Rican adults. Using constructivist grounded theory, results revealed 3 core categories and 6 subcategories depicting Florida Puerto Rican premigration experiences: (a) economic and social disruption and conditions, (b) family and individual disruption and conditions, and (c) local political corruption. Participants' decision to migrate was accompanied by premigration stress and a wide range of emotions including sadness, pain, and significant loss. Migration was also perceived as misaligned with their cultural and family values. Drawing on Latinx critical theory, premigration conditions and causes and migration reasons are examined and interpreted in light of the colonial relationship between Puerto Rico and the United States to present a model of Puerto Rican colonial migration. This model captures significant determinants of premigration and migration decision making that have important implications for the mental health of Puerto Rican migrants in the United States and their postmigration adjustment. Public Significance StatementPuerto Ricans, facing economic and social disruption caused by colonialism on the island, have resorted to migrating to the mainland United States. A theoretical model of colonial migration was developed by identifying causal conditions and consequences related to colonial premigration stress among Puerto Ricans who migrated to the United States between 2006 and 2017.

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Section: Premigration Economymentioning

confidence: 99%

Section: Premigration Economymentioning

confidence: 99%

Section: Premigration Economymentioning

confidence: 99%

See 1 more Smart Citation

“It hurts but it’s the thing we have to do”: Puerto Rican colonial migration.

Gonzalez

Rosario

Abreu

et al. 2021

Journal of Latinx Psychology

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“…This chapter joins a growing number of papers that study Puerto Rico's debt and economic crisis. Feliciano and Green (2017) show the significant negative effect that the repeal of Section 936 tax exemptions had on Puerto Rican manufacturing wages and the number of manufacturing establishments. Chari et al (2017) find that increased default risk is associated with reduced economic activity in the aggregate and especially in government demand-dependent industries.…”

Section: Related Literaturementioning

confidence: 93%

Contract Provisions, Default Risk, and Bond Prices

Chari¹,

Leary²

2021

Sovereign Debt Diplomacies

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This chapter presents a case study that investigates the pricing of key contract provisions in Puerto Rican debt. It contributes to a body of research that asks whether investors price contract provisions and, if so, whether the pricing varies with credit risk. Contract provisions across different types of Puerto Rican bonds contain multiple sources of variation. Specifically, the chapter examines investor pricing of three key legal provisions of Puerto Rican debt; general obligation debt versus the secured bonds issued by the Puerto Rico Sales Tax Financing Corporation; debt issued under New York law versus Puerto Rican law; and finally impact of the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA) which retroactively enacted collective action clauses for Puerto Rican debt. In each instance, we find evidence consistent with the hypothesis that investors value specific contract provisions and legal protections and more so when credit risk is high, and restructuring becomes likely.

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“…Misfortunes do not come alone: 2 Persistent Colonialism To accurately examine post-María conditions in Puerto Rico one must understand how this natural disaster coalesced with the economic and social disaster that had already been caused by over 122 years of U.S. colonialism in Puerto Rico. 3 María made landfall at a time when Puerto Rico was experiencing a decade long economic recession (Cabán, 2017), resulting from persistent U.S. colonial policies in Puerto Rico (Cabán, 2017;Feliciano & Green, 2017;McGreevey, 2018;Merling et al, 2017;Morales, 2019;Torruella, 2017). In the late 1990s, Puerto Rico's economy quickly contracted after the U.S. Congress derogated Section 936 of the Internal Revenue Service, which for nearly 20 years exempted U.S. companies that relocated to Puerto Rico from paying federal taxes.…”

mentioning

confidence: 99%

Puerto Rico Se Levanta: Advocacy service and research in the aftermath of Hurricane María.

Rosario¹,

Fernández²,

Wejrowski³

2022

Qualitative Psychology

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This piece will examine the experiences of two Puerto Rican researchers who engaged in advocacy service and research with Puerto Rican communities on the island and in the United States in the aftermath of Hurricane María. Through this piece, the authors will share the challenges associated with conducting research and leading advocacy efforts as well as the rewards inherent from this work. Most specifically, the authors will discuss the secondary trauma and healing they experienced through their work with the Puerto Rican community as well as the ethical dilemmas they encountered throughout this process. The authors will discuss how these dilemmas were identified and navigated through the American Psychological Association's (APA) ethics code and the National Latinx Ethical Guidelines.

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US Multinationals in Puerto Rico and the Repeal of Section 936 Tax Exemption for U.S. Corporations

Cited by 11 publications

References 6 publications

“It hurts but it’s the thing we have to do”: Puerto Rican colonial migration.

“It hurts but it’s the thing we have to do”: Puerto Rican colonial migration.

Contract Provisions, Default Risk, and Bond Prices

Puerto Rico Se Levanta: Advocacy service and research in the aftermath of Hurricane María.

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