New York – The Jackson County legislature in Missouri passed two resolutions this month; one to include provisions that promote food sovereignty in Puerto Rico as part of an eventual transition to the Supplemental Nutrition Assistance Program (SNAP), and the second to close the tax loophole of Act 22 under which tax exemptions are granted.
The resolutions adopted by the organization were sponsored by Manuel Abarca IV, legislator of District 1.
Resolution 21628 in favor of food sovereignty for the island passed the legislative body’s screen on June 10 after it was presented on May 20.
The document, which calls for the inclusion of language that encourages food sovereignty as part of the new “Farm Bill” being discussed in the United States Congress, points out that Puerto Rico currently imports approximately 85% of its food, leaving island residents exposed to global market fluctuations and at the mercy of supply chain disruptions.
“Strengthening the local agriculture sector by reprogramming funds from the federal Department of Agriculture (USDA) toward the purchase of locally grown items will significantly improve food sovereignty and resilience on the island,” states the text sent to El Diario.
Food sovereignty also implies greater resilience in the midst of natural disasters
The resolution states that the above will also help Puerto Rico in its ability to recover from natural disasters by reducing its dependence on federal aid and demonstrating a model of resilience that can be replicated throughout the country.
In the opinion of legislators, other effects of supporting local agriculture through the Farm Bill would be to boost economic growth, entrepreneurship and job creation.
Additionally, the initiative will promote sustainable agricultural practices that reduce the carbon footprints associated with food transportation, which in turn will contribute to mitigating the effects of climate change.
Specifically, the county legislature supports that, as part of a transition from PAN (Nutrition Assistance Program) to SNAP, funds be reprogrammed to Puerto Rico for the purchase of locally grown products, and information on changes in Spanish language or in a culturally competent way to facilitate the insertion of Puerto Rican farmers in the processes.
The PAN is the block or limited SNAP grant that has applied to the territory since 1982. Various sectors have been advocating since last year for the inclusion of Puerto Rico in the SNAP program, such as in the states and Virgin Islands and Guam (two others US territories).
The Farm Bill is omnibus legislation that must be reauthorized every five years. The legislative package includes funding for food assistance programs for states, territories and other jurisdictions in the US. So far, Democrats and Republicans have not been able to agree on its final content.
The inclusion of Puerto Rico in SNAP was ruled out in the version of the Farm Bill approved by the House of Representatives Agriculture Committee led by Pennsylvania Republican Glen Thompson.
In the case of the Senate, the transition provision presented by Michigan Democrat Debbie Stabenow, who is also the chair of the Agriculture Committee in that body, remains.
Activists linked to the issue and led by the Power4PuertoRico coalition have been pressing for the new Farm Bill being discussed in the federal capital to include provisions that promote food sovereignty on the island or the right of communities to decide how they produce, market and consume food.
For example, last May, Puerto Ricans from 15 states who are part of the collective held an advocacy day in the federal Congress in which they insisted on the need to advance this discussion. The tour included meetings with 34 members of Congress.
At that time, the speakers stated that the need for food security in the archipelago can become a matter of life or death in cases of emergencies such as hurricanes when the distribution chain and the transit of products to the island are interrupted.
County Legislature also approves resolution against Law 22
The Jackson County legislature also approved Resolution 21627 in order to call on the federal Congress to act on the tax loophole of Law 22 or “Law to Incentive the Transfer of Individual Investors to Puerto Rico”, another of the key demands of the aforementioned diaspora organization.
The document states that, although the purpose of the tax exemption decrees granted by the Department of Economic Development and Commerce (DDEC) to foreigners who relocate to the island was to promote investment and therefore economic growth, the results have been another address.
“A decade later, evidence from an Internal Revenue Service (IRS) investigation indicates the misuse of these incentives, leading to growing frustrations among Puerto Ricans due to apparent favoritism; and despite the influx of investors, there is limited evidence of indirect benefits to the broader economy in Puerto Rico, as reported by the Washington Post on September 22, 2023,” the resolution states.
Worse yet, lawmakers argue that misuse of this privilege undermines the intent of the tax incentives, displacing local residents and causing significant economic disparities.
The legislative body asks members of Congress to take immediate action to clarify and amend the US tax code to prevent the above.
They clarify that any amendment to said law must preserve the intention of promoting the economic growth of Puerto Rico, while preventing potential misuse and addressing negative economic impacts on the local population.
This resolution, although it was approved on May 20, was also released this week.
The resolutions were sent to top House and Senate leaders in the US; to President Joe Biden, and to the governor of Puerto Rico, Pedro Pierluisi.
Law 22, approved by the Puerto Rico legislature in 2012, exempts foreigners who settle in Puerto Rico for at least 183 days a year from paying taxes on dividends, interest and capital gains.
Currently, the US Senate Finance Committee is investigating the audit being carried out by the IRS of some 100 Act 22 recipients who have allegedly lied about their stay on the island to avoid paying the federal taxes that correspond to them. .
Keep reading:
Food sovereignty in Puerto Rico: the most recent battle of activists in Congress in the midst of the discussion over SNAP
Senator Ron Wyden’s office confirms to El Diario a briefing at the end of the month on the IRS investigation of beneficiaries of Law 22 in Puerto Rico
Puerto Rico: Representative Cori Bush and Chicago councilors join the call against Law 22 and ask to close a legal loophole that benefits millionaire foreigners
Puerto Rico: DDEC confirms supply of information to the IRS for investigation of foreigners with decrees under Law 22
Puerto Rico: foreigner guilty of appropriating $110 million from the cryptocurrency and child pornography market has a decree under Law 22
Interview: Representative Delia Ramírez closely follows the issue of foreigners who do not pay taxes under Law 22 and displacement in Puerto Rico