Puerto Rican Statehood

Statement

Just east of the Dominican Republic lies an island almost identical to the State of Connecticut in size and population. Its 3.5 million residents mostly speak Spanish and earn an income of about half of the U.S. average. While it may be easy for both them and the rest of us to forget it at times, the residents of this island are U.S. citizens.

Even though Puerto Rico is geographically small, its population is actually larger than those of 21 states, including Hawaii. That being the case, it is seemingly strange that the island would remain a mere federal territory today rather than a full state. One reason for this, of course, is Puerto Rican nationalism: Puerto Ricans have voted against statehood numerous times. However, in 2012, residents voted for statehood for the first time ever, showing that opinions are beginning to shift.

Despite the 2012 referendum results, and despite verbal support given by both major parties and President Obama, the federal government has dragged its feet when it comes to actually admitting Puerto Rico as a state. One of the reasons for this is that many in Congress simply do not care about Puerto Rico. Another reason is that the Puerto Rican economy is in very poor condition, and it does not seem that this will be changing any time soon so long as current circumstances are maintained. That being the case, some members of Congress see Puerto Rico as deadweight that should be avoided.

Current circumstances should not be maintained, however. One of the reasons for Puerto Rico's economic woes is the fact that companies shy away from the political uncertainty that surrounds the island. Bean counters do not like uncertainty. If we could know that Puerto Rico is either going independent or being incorporated as the 51st state, we could all make the appropriate plans. The continuing ambiguity, though, just leaves everyone frustrated and debilitated.

In fiscal and economic terms, there are pros and cons both for Puerto Rico and for the U.S. federal government when it comes to statehood. In the long term, though, the real deciding factor will be the ability to promise political stability and certainty to companies that move there. This trumps everything else. There is also the fact that the political structure of a dependent commonwealth such as Puerto Rico is naturally more conducive to corruption, so allowing Puerto Rico to form a real state government will help to address many of its corruption issues. Another matter that is very important in the short term is the fact that, for the first time ever, Puerto Rico has defaulted on its public debt. In admitting Puerto Rico as a state, the federal government will have a greater ability to help Puerto Rico restructure this debt and build a more stable fiscal future.

As for the detriments of statehood, the biggest one is the fact that Puerto Ricans would suddenly have to pay federal personal income tax, which is currently not the case. While this seems fair in a sense, as Puerto Rico would be the poorest state, and as federal policy has contributed to its economic woes, it would also seem fair to not suddenly drop that burden on the new State of Puerto Rico overnight.

Based on the reasoning mentioned here, my position on Puerto Rico is that it should be admitted as a state but that federal personal income tax should be phased in slowly* over a period of 15 years. If elected, I intend to push Congress to do exactly that. This will not only help Puerto Rico to cope with its immediate fiscal debacle, but will also help the island to move toward a bright and prosperous future.

Some might say that the woes of Puerto Rico are not the concern of a congressman from Texas, but I beg to differ. Unlike the residents of countries that received the $37.9 billion of U.S. foreign aid in 2015, Puerto Ricans are U.S. citizens, and our federal policy has contributed significantly to their plight. We should strive to be a force for good in the world and help as many people as we can, but we should start with our own.

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*Only for people already living there. New residents will enjoy no such tax breaks.

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