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From IVU To IVA In Puerto Rico: Will We Be Able To Eat

Updated on February 15, 2015
Froggy213 profile image

A Gringo who moved to Puerto Rico, Greg loves writing about the island he now resides on. He and Maria also wrote several bilingual books...

By United Satates Department of Labor  derivative work: Coronades [CC BY 2.0 (http://creativecommons.org/licenses/by/2.0)], via Wikimedia Commons
By United Satates Department of Labor derivative work: Coronades [CC BY 2.0 (http://creativecommons.org/licenses/by/2.0)], via Wikimedia Commons

He speaks with a forked tongue

Some time ago, the current Governor of Puerto Rico said he would not raise the sales tax which is called IVU. The Governor is Alejandro Javier García Padilla and he is a member of the Popular Democratic Party. That party is aligned quite near the Democrats, whereas the New Progressive Party is aligned to the Republican party.

García Padilla did not tell a lie; he isn't raising the IVU tax. As a matter of fact, his plan is to do away with the IVU tax. The IVU tax amounts to 7% of the total sales amount.

So are you yelling yea, no more tax?

Don't be so quick!

The plan that is about to go into effect is a different tax. It is considered a VAT tax. VAT stands for value added tax, and it will be called IVA. Guess what the new tax percentage will be?

16%

Yep, more than doubling the original tax that you once paid.

So you are needing some coffee....Can you really afford it? Let's look at the new amounts:

(click column header to sort results)
Amount  
IVU 7%  
IVA 16%  
Difference  
$1.00
.07
.16
.09
$20.00
$1.40
$3.20
$1.80
$50.00
$3.50
$8.00
$4.50
$100.00
$7.00
$16.00
$9.00

Awaken you citizens

Do you realize what this will do?

It is time to stand against this. Yes, Puerto Rico is in terrible financial shape, but using this IVA tax will hurt many people very bad.

As we drive the streets, it is evident of the terrible economic conditions on this island that is a territory of the United States. Many businesses have closed their doors, and there are abandoned houses and buildings everywhere. IVA will accelerate this condition. More businesses will close because citizens will not be able to afford to shop at them.

Crime will become unmanageable as people will find ways to survive even if it is illegal.

There are other avenues the government of Puerto Rico can take to help the economy instead of attacking the welfare of the citizens.

Will we find more white collar officials ending up in this facility?

Federal prison facility in Guaynabo, Puerto Rico
Federal prison facility in Guaynabo, Puerto Rico | Source
One of many abandoned buildings in Puerto Rico
One of many abandoned buildings in Puerto Rico | Source

Spending and Pay Cuts

Instead of the IVA tax, how about these government officials take some pay cuts?

Padilla makes $70,000 a year. There are many of these government officials making outrageous sums of money. If they just gave part of that back, this island would come out of the deficit it is in.

What will probably happen though is: The IVA tax will proceed and officials will vote themselves raises.

So what should the citizens of Puerto Rico do?

The Socialist Party

As Maggie and I were out and about near the Escorial Shopping Center, we were stopped at a light. A member of the Puerto Rican Socialist party handed us a flyer about this development in the Puerto Rico taxes.

I am not, nor will ever be affiliated with the Socialist Party, but what they said in the flyer makes good sense.

We as people need to revert back to how our forefathers operated. Trade and barter. Buy your goods at roadside stands, or trade your services for other services or goods.

We need to keep from paying this tax as much as possible. If the tax isn't making the government money, what will they do?

It is a stand that citizens must take together.

Please, for all of you in Puerto Rico...share this hub and tell people about this. Awareness is the first step in defeating this beast we call government.

They are stepping into bounds they shouldn't. The government is our employees-not vice versa.

The Government of the absolute majority instead of the Government of the people is but the Government of the strongest interests; and when not efficiently checked, it is the most tyrannical and oppressive that can be devised.

— John C. Calhoun

What can we put into the hands of people under oppressive regimes to help them? For me, a big part of it is information, knowledge - the ability to defeat propaganda by understanding it.

— Jimmy Wales

© 2015 Greg Boudonck

Comments

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    • Froggy213 profile imageAUTHOR

      Greg Boudonck 

      3 years ago from Returned to an Isla Del Sol - Puerto Rico Will Rise Strong

      Yes, you are correct. If enough people raise shouts of anger, maybe it can be stopped. Wish you the best sir.

    • profile image

      seabeerich 

      3 years ago

      Was born and raised there for 21 years and served my country in the U.S. Navy. Now retired, I want to find me a piece of land to call home and build to live quietly, but this tax will ruin me.....thanka to a greedy government that sucks the United States dry from monies it wastes for themselves... I also agree that if each official would take a pay cut, we would nt really have this problem.

    • Froggy213 profile imageAUTHOR

      Greg Boudonck 

      3 years ago from Returned to an Isla Del Sol - Puerto Rico Will Rise Strong

      Yes, you are right Bill...Not funny, but I am still giggling. Thanks my friend.

    • billybuc profile image

      Bill Holland 

      3 years ago from Olympia, WA

      It's the old joke that isn't really funny...how do you know when a politician is lying....his lips are moving.

      Hope you are having a great Sunday, buddy.

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