United States Government Publishing Office publisher pbl distributor dst United States Government Accountability Office General Government Division author aut Government Organization text government publication eng GAOREPORTS Legislative Agency Publications gao legislative 2010-08-12 U.S. Government Printing Office 1996-08-15 monographic deposited born digital 62 p. GA 1.13:GGD-96-127 https://www.govinfo.gov/app/details/GAOREPORTS-GGD-96-127 P0b002ee180375d66 f:gg96127 DGPO 2010-08-12 2011-03-24 GAOREPORTS-GGD-96-127 machine generated eng fdlp REPORT GAOREPORTS-GGD-96-127 GGD-96-127 Personal income taxes Tax returns Taxpayers Territories and possessions Tax administration Tax credit Tax expenditures Tax law Puerto Rico Letter Report GGD S13227

Pursuant to a congressional request, GAO provided information on the potential effects of extending the Internal Revenue Code (IRC) to residents of Puerto Rico.<p/>GAO found that if IRC tax rules are applied to residents of Puerto Rico: (1) the residents would owe around $623 million in federal income tax before taking into account the earned income tax credit (EITC); (2) the aggregate amount of EITC would total $574 million; (3) 59 percent of the population filing individual income tax returns would earn some EITC; (4) 41 percent of the households filing income tax returns would have positive federal income tax liabilities, 53 percent would receive net transfers from the federal government, and 6 percent would have no federal tax liability; (5) more Puerto Rican residents and married couples would file federal tax returns if they qualified for EITC; (6) the average EITC earned by eligible taxpayers would be $1,494; (7) the Puerto Rican government would have to reduce its own individual revenue by 5 percent to keep the aggregate amount of income tax levied on its residents constant; (8) the taxes paid by certain classes of Puerto Ricans would change drastically; (9) the per capita combined individual income tax in Puerto Rico would increase by 5.5 percent; and (10) tax expenditures would total $2.8 billion in 1996 and $3.4 billion in 2000. https://www.govinfo.gov/content/pkg/GAOREPORTS-GGD-96-127/html/GAOREPORTS-GGD-96-127.htm https://www.govinfo.gov/content/pkg/GAOREPORTS-GGD-96-127/pdf/GAOREPORTS-GGD-96-127.pdf GAO/GGD-96-127 https://www.govinfo.gov/app/details/GAOREPORTS-GGD-96-127 Letter Report GAO/GGD-96-127; Tax Policy: Analysis of Certain Potential Effects of Extending Federal Income Taxation to Puerto Rico; Personal income taxes Tax returns Taxpayers Territories and possessions Tax administration Tax credit Tax expenditures Tax law Puerto Rico Title 48 Section 745 48 U.S.C. 745 Volume 107 Page 312 107 Stat. 312 Public Law 103-66