Ask the Scholar

{
    "localId": "1554456",
    "label": "Puerto Rico - Compact of Permanent Union, November 7, 1975",
    "core": "doc",
    "dtoType": "document",
    "citationUrl": "https://catalog.archives.gov/id/1554456"
}

{
    "id": "1554456",
    "sourceUrl": "https://catalog.archives.gov/id/1554456",
    "contentType": "document",
    "title": "Puerto Rico - Compact of Permanent Union, November 7, 1975",
    "citationUrl": "https://catalog.archives.gov/id/1554456",
    "collections": [
        "White House Special Files Unit Files",
        "Issue Decision Papers for the President"
    ],
    "subjects": [
        "Puerto Rico",
        "Intergovernmental relations",
        "Territories and possessions"
    ],
    "iiifBase": "https://s3.amazonaws.com/NARAprodstorage/lz/presidential-libraries/ford/grf-0010/569572/1554456/1554456_Page_02_Image_0001.jpg",
    "thumbnailUrl": "https://s3.amazonaws.com/NARAprodstorage/lz/presidential-libraries/ford/grf-0010/569572/1554456/1554456_Page_02_Image_0001.jpg",
    "largeImageUrl": "https://s3.amazonaws.com/NARAprodstorage/lz/presidential-libraries/ford/grf-0010/569572/1554456/1554456_Page_02_Image_0001.jpg",
    "imageCount": 59,
    "hasImages": true,
    "source": "import",
    "hasTranscription": false
}

{
    "url": "https://catalog.archives.gov/id/1554456",
    "naId": 1554456,
    "coverageEndDate": {
        "day": 14,
        "logicalDate": "1976-01-14",
        "month": 1,
        "year": 1976
    },
    "coverageStartDate": {
        "logicalDate": "1975-10-01",
        "month": 10,
        "year": 1975
    },
    "levelOfDescription": "fileUnit",
    "recordType": "description",
    "ocrSource": "nara-archive"
}

{
    "seq": 50,
    "pageIndex": 0,
    "type": "photo",
    "url": "https://s3.amazonaws.com/NARAprodstorage/lz/presidential-libraries/ford/grf-0010/569572/1554456/1554456_Page_51_Image_0001.jpg",
    "mediaId": "fc30bfe299f96fe2",
    "ocrText": "- 10 -\nThere should be specific listing of the proposal's effect\non relevant laws rather than reliance on the general statement\nin section (a) .\nSection 12(b) would provide that no new Congressional enact-\nments would be applicable to Puerto Rico except as provided in\nsubsections (c) and (d). Subsection (d) would provide that laws\nwhich directly affect the rights and duties of citizens and the\nsecurity and common defense, and laws which relate to foreign\naffairs and currency would apply. It is unclear whether it is\nintended that future Federal tax legislation affect Puerto Rican\ncitizens. It is uncertain if payment of taxes would be considered\na duty for purposes of the Compact and whether application of\nFederal tax legislation to Puerto Rico would be essential to\nUnited States interests and would be compatible with the Compact.\nSection 12(e) would provide that new Federal rules, regula-\ntions, and orders will be applicable to Puerto Rico over its\nobjection if the promulgating authority makes a finding and\ndeclaration that application to Puerto Rico is essential to the\ninterests of the United States and compatible with the Compact.\nSubjection of such declarations to judicial review will add to\nthe uncertainty of whether specific Federal tax rules, regula-\ntions, and orders may affect Puerto Rican citizens.\nTo summarize, it is not clear from the proposed compact\nwhat legal status is intended for the Commonwealth of Puerto\nRico. If it is intended that Puerto Rico be treated as a foreign\ncountry for purposes of the Internal Revenue Code of 1954, this\nshould be expressed. In the alternative, if Puerto Rico is to\nbe considered a possession, this should be stated. The proposed\ncompact may represent an attempt to assign to Puerto Rico a legal\nstatus heretofore unknown and unrecognized or contemplated by the\nCode. If this be the case and this compact were adopted, many\nprovisions of the Code would have to be amended to clarify their\napplication to Puerto Rico. Further, new provisions may have to\nbe added to the Code to deal exclusively with matters of income\ntaxation involving both the United States and Puerto Rico.\nIf one of the objectives of the proposal is to foster the\ndevelopment of Puerto Rico as a tax haven in order to boost its\neconomy, consideration should be given .to whether subpart F\n(secs. 951 and following) of the Code is incompatible with such\nan objective.\nI"
}