A Bloomberg News article reports on the tax benefits available to those who move to Puerto Rico from the 50 states:
Under Puerto Rico's new rules, an individual who moves to the island pays no local or federal capital gains tax (capital gains are charged based on your tax home rather than where you earn them) and no local taxes on dividend or interest income for 20 years. Even someone working for a mainland company who is a resident of the island would be exempt from paying U.S. federal taxes on his salary. Moving to the island won't kill all taxes: U.S. citizens still have to pay federal taxes on dividend or interest income from stateside companies.
Fascinating stuff. Alas, Bloomberg has to put it into a tendentious political context: "Tax bills have risen after a 10-year break under President George W. Bush that disproportionately favored the rich."
Clifford Asness points out that the Bush income tax cuts did not disproportionally favor the rich. But even beyond that, I chuckled at the phrase "a 10-year break under President George W. Bush." Funny how Bloomberg News retroactively declares 2009 and 2010, during which Democrat Barack Obama was president of the United States, and the Democratic Party also controlled both houses of Congress, part of the Bush administration.