Puerto Rico And Their Taxing Issues
I just read an article online about the major finincial problems of their nation and their people. It seems that Puerto Rico’s politicians have the same ignorance to reality issues that ones here in the states have about taxing. When you listen to the BBC like I like to do, you realise that the EU countries with their major financial woes also feed into the theory of more taxes will make all their problems go away, it doesn’t make the problems go away, it just makes the plight of the people in the lower income levels much worse off.
I grew up in a town about an hours drive west of Chicago Illinois in the town of Belvidere. It was a working class town of about 15,000 people at that time. I didn’t get to listen to much radio in our home but when my dad wasn’t around I would listen to WLS, 89 AM. It was there that I got to listen to the politics and the issues of the day. If you know anything about Chicago you know they are consumed with political intrigue. Politicians and their antics almost always get top billing from the local news agencies. This is when I started forming opinions about how things were handled there on issues like city services, financial issues, and taxes.
First I am going to talk about Chicago city services like their rail and bus systems. As most all of us know there are two things that a politician wants from each of us, our vote and all of our money. That seems to be true of most all of them no matter what level of office they want to hold. I remember several times listening to the people on the radio programs talk about their mass transit financial woes. It seemed to be the problem was always addressed the same way, raise the cost per ticket and cut some of the routes from existence. There are a couple of major problems with this format. If for example the cost of a ticket each day into town so you can get to your job cost $1.00, so that equals $2.00 per day. So, you are paying $10.00 per five day work week. The politicians look at ridership numbers on each route so they will know which ones to eliminate, also how much they think they need to raise the price of each ticket to correct the financial red ink. So they go by ridership numbers, how many people are riding your bus that you use to get to work on each day. But, you live in one of the many poor neighborhoods where the bus is essential for getting to their jobs because they can’t afford a car. What the politicians don’t understand is when they keep increasing the ticket cost, the people who need the service the most get to where they can’t afford the cost of the tickets so they have to quit their jobs, or walk.
If I owned one of those busses and say it holds 50 people and the bus ridership on each of my routes averaged 35 sold tickets. Now, I think that my cost figures were calculated at a ridership averaging 45. So I decide to raise the cost of the tickets to make up that difference. This is what always happens in real life, the politicians think the way to put more money in their bank is to raise the cost, raise the taxes. But the result always backfires, their total revenue goes down because with the cost of the ticket goes up, the ridership numbers go down. So, at the end of the year they now see that their total income is less than the year before and they just can’t understand why. The next thing the politicians at City Hall do is to cut these routes that aren’t making the city money. This is stupid and cruel, the routes they cut are always to the poorest neighborhoods, the people that needed the bus the most now lose their jobs because they can’t get to them. The answer to the problem of not enough ridership is simple, if they would give a darn they could look at the numbers because it is all about the money intake. Always when the price of the tickets goes up, ridership goes down, especially in the poorer neighborhoods. Here is my answer to correcting the problem but it is one that politicians just won’t do, lower the cost of the tickets and you will fill the busses seats because now more people can afford to ride. If the busses are always full your revenue will increase. It is such a simple solution to so many of the public’s financial woes weather it is in the mainland, England, France, or Puerto Rico.
If your government really cares about you there in Puerto Rico they need to cut all taxes way back, say 50%, both on all the people and on all the business. This would stimulate your economy very quickly, creating jobs because businesses would want to expand and produce more products, the people would have jobs in which to pay income taxes with which stimulates your economy as you are able to buy things from your local stores which creates more tax revenue for the state. It is a win win situation for your people and for the country itself.
I really wish that people like Ms Priscilla Vazquez from the Manufactures Association would press your government very loudly with these solutions I have just written about. Please think about this solution for your country’s financial problems. Please think about how life for you the people of Puerto Rico is right now. Now, what are the answers your country’s leadership is putting upon you the people. They say tax everything more, what is the result you are getting? The factories are closing and people are losing their jobs. The end result is the people go hungry and lose everything they have spent their whole lives working for. Also, this also causes the amount of total income for the state to fall to less than it was before they raised the taxes.
I did take a little bit of economics when I was in college but my degrees are in other career fields. But, I really don’t think it takes a brain surgeon to be able to see this simple solution. The more people are able to be involved in a nations economy creates a larger GDP which creates more tax revenue, this is done by lowering the taxes. I guess all that I can do is to pray for you all and wish the best of luck for each of you because I don’t think any politician has the guts to really do these things that are needed to be done.