(ZEROHEDGE) – President Joe Biden says the 1980s Reagan era trickle-down economics doesn't work as he wants to roll back tax cuts for the rich. The impending clampdown has spooked top affluent investors, including crypto investors, who are descending to Puerto Rico to dodge tax hikes.
Puerto Rico passed two important tax bills in 2012 that has transformed the island into a cryptocurrency tax haven paradise. Under Act 22 of its local tax code, the Caribbean island and unincorporated U.S. territory offers full exemption from all local taxes on passive income to new residents. Act 20, provides a 4% corporate tax rate and exemptions on dividends. This is a much better deal than the U.S., where investors pay 20% in long-term capital games and 37% in short-term gains.
The explosion of remote work, expansion of crypto markets, and tax haven have made the Caribbean island attractive for crypto investors.
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