[Congressional Record (Bound Edition), Volume 160 (2014), Part 4]
[House]
[Page 5373]
[From the U.S. Government Publishing Office, www.gpo.gov]




 PUERTO RICO: HOW STATEHOOD WOULD POTENTIALLY AFFECT SELECTED FEDERAL 
                      PROGRAMS AND REVENUE SOURCES

  The SPEAKER pro tempore. The Chair recognizes the gentleman from 
Puerto Rico (Mr. Pierluisi) for 5 minutes.
  Mr. PIERLUISI. Mr. Speaker, this week, the GAO published a report 
about the fiscal impact of Puerto Rico statehood on the Federal 
Government.
  In a 2012 referendum, a majority of voters in Puerto Rico said they 
didn't want Puerto Rico to remain a territory, and more voters favored 
statehood than any other option. In January, at my initiative, a law 
was enacted to provide funding for the first federally-sponsored vote 
in Puerto Rico's history. Meanwhile, in the past year, Puerto Rico's 
longstanding economic problems have devolved into a crisis. Every week, 
1,000 of my constituents move to the States in search of opportunity 
and equality. Thus, the GAO has released its report at a time when 
island residents are voting for statehood--at the ballot box and with 
their feet--in unprecedented numbers.
  The momentum in favor of statehood continues to build with this 
report, which supports the conclusion that statehood will be beneficial 
to Puerto Rico and to the U.S. as a whole.
  The report confirms that statehood will enhance the quality of life 
in Puerto Rico. As a territory, Puerto Rico is treated unequally under 
key Federal spending and tax credit programs. As a State, it will 
receive equal treatment. Based on the GAO's analysis and taking into 
account programs the GAO did not examine, it can be calculated that 
statehood will inject an additional $10 billion into Puerto Rico's 
economy each year. This underscores the scope and severity of the 
discrimination Puerto Rico faces as a territory.
  The report also alleviates the concern that statehood would have an 
adverse impact on the U.S. Treasury. As the GAO explains, new Federal 
outlays to Puerto Rico will be significantly counterbalanced by new 
Federal revenues generated from the island, which could amount to $7 
billion a year. As Puerto Rico prospers, collections will increase 
further.
  The report, thus, reinforces that statehood, which is so plainly in 
Puerto Rico's interest, is also in the national interest. This Nation 
will benefit when Puerto Rico's economy is strong, when its residents 
don't need to move to the States to achieve their dreams or vote for 
their national leaders, when individuals and businesses on the island 
flourish, and when the tax base expands. The U.S. will profit from the 
state of Puerto Rico's success, just as it currently pays an economic 
and a moral price for the territory's shortcomings.
  The reaction to the report from politicians in Puerto Rico who favor 
the status quo has been dishonest. Their strategy is clear: if you 
cannot convince the public, try to confuse the public.
  For example, they claim the report concludes that hardworking island 
residents would have a large Federal tax liability under statehood. The 
report says no such thing, and the assertion is false. A typical 
household in Puerto Rico will pay the same or less in total taxes under 
statehood than it pays now due to the application of Federal tax 
credits and the ability of the Puerto Rico Government to reduce its 
high local rates once it no longer needs to finance a disproportionate 
share of public services.
  In any event, this inaccurate argument shows disrespect for the 
people of Puerto Rico, who will be proud to assume both the rights and 
responsibilities of statehood. Throughout history, men and women have 
fought and fallen for equality and dignity. These principles are 
priceless.
  My colleagues who requested the GAO report should now schedule a 
hearing on it. Seventy-five days have passed since the enactment of the 
law authorizing Puerto Rico to hold a federally-sponsored referendum, 
and 132 Members of Congress have sponsored my legislation that calls 
for a referendum on Puerto Rico's admission as a State, which requires 
Federal action if a majority of voters chooses statehood. If the 
Governor of Puerto Rico believes his claim that the GAO report is 
somehow damaging to statehood, he should have the courage of his 
convictions to conduct a statehood admission vote with the available 
Federal funds without delay. His inaction speaks louder than his words.

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