Democratic lawmakers pay a draft law to end the tax exemptions for encryption in Portorico
Democratic lawmakers have presented new legislation on Monday to eliminate the attractiveness of Portorico as a tax coding.
The fair taxes of digital assets were in the 2025 Porturico Law foot By actor Nidia Villazkuiz from New York. This measure aims to fill a loophole that allows investors to encryption not to pay any federal taxes by moving to the island.
At the present time, the residents of Portoresto who consider the island’s residents on the island can pay a few local or federal taxes without capital gains, including the profits gained from the trading of encrypted currency, under Law 60. This policy has attracted thousands of wealthy investors over the past decade.
The proposed law will add a ruling to the internal revenue law that requires taxes on the income of the digital assets that Puerto Rico’s residents gain under the same federal rules that the income acquires on the mainland of the United States.
Legislators blame the encryption investors for amplifying the costs of living
According to what was reported, the flow of encrypted investors has caused more harm than the local Portorico population, according to Velasuiz and other legislators.
Instead of strengthening the economy, they say that the flow of wealthy encryption dealers has inflated the costs of living, especially in the real estate markets.
“This wave of encryption investors did not help recover Puerto Rico or have strengthened the local economy,” said Villazkuiz.
According to her, she only paid the costs of housing, paid the local population, and added pressure to an island where nearly 40 % of people live in poverty – all with the costs of billions of federal government in missing tax revenues.
The Joint Taxes Committee said that the tax exemptions for investors will cause the federal government to lose an estimated $ 4.5 billion of revenues between 2020 and 2026.
The economic gap has become more clear in cities such as San Juan, where signs of luxury real estate developments have multiplied even with many local families dealing with high rents and limited options for work.
Earlier this month, the new governor of Puerto Rico, Jennifer Gonzalez, suggested a slight tightening law 60. Her proposal will keep the benefits in place until 2055, but it will apply a 4 % tax to new capital gains – is still much lower than 20-37 % that many Crypto investors will pay to programming.
Defenders are struggling to keep the separators
Supporters of the current tax system say it has attracted the investment and innovation that is in need of Puerto Rico. They say that the new wealthy arrivals help build a more powerful technology and financing sector, create job opportunities, and modernize the island’s economy.
Crypting advocates say that without tax exemptions, these investors had gone to another place with their money.
But critics are skeptical, noting that most of the benefits have gone to the wealthy, and not for Mediterranean Puerto Rican.
The political way to the draft law appears to be mysterious. The Republicans historically preferred less taxes and it seems unlikely to sign legislation to see it as a CRYPTO fight.
In addition to another touch to the political poker, President Donald Trump recently adopted cryptocurrencies. He pledged to retract the regulations that strangle the digital asset sector.
Velázquez has a hard battle with Congress that focuses on the wider tax arguments.
However, the effort confirms the tensions that escalate the budget of innovation in exchange for equity and economic justice – not only in Puerto Rico but at the national level.
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