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In the closing days of the Harris vs Trump election campaign in October 2024, Trump attends a rally in Madison Square Garden in New York city. Harris visits a Baptist church in Philadelphia, and talks to young black men at a barber shop, visits a Puerto Rican restaurant in Philly. The visit to the Puerto Rican restaurant comes as a comedian at the Trump Madison Square Garden rally makes racist remarks about Latinos, Blacks and Jews, and calls Puerto Rico an "island of garbage." About 579,000 Latinos and Puerto Ricans make up the voting public in Pennsylvania. Latino stars put up video clips of the comments on Latinos on social media expressing their disapproval.

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This WSJ report says IRS is working on collecting $10.7 bill in taxes from Amgen for the shift of $14 billion in profits to its Puerto Rican subsidiary. Puerto Rico is considered a foreign country for US tax purposes, and by locating profits there Amgen paid much lower taxes than most companies. In 2013 this was effective tax rate of 3.5%. Now this is coming into careful scrutiny from the US government as president Biden plans to generate revenues to pay for the shift to renewable energy to combat climate change with COP26 commitments by the US, and to reduce pharmaceutical cost inflation for the US public. This is the idea behind the $369 billion Inflation Reduction Act of 2022, both a climate and a tax bill that is being passed in the US Congress.

This bill is the biggest climate change bill in history and yes it depends on revenues from fair taxation that has not happened till the Biden administration's resolute effort in this direction.

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Puerto Rico Electric Power Authority's longer term bonds trade at about 40 cents to the dollar in 2014. The utility struggled to make a bond payment, and has $9 billion in debt. Utility rates for customers are about twice that in the U.S.

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Puerto Rico's main pension fund for 250,000 government workers is only 6% fundeed and is expected to run out of money by 2014. Another pension fund for 80,000 teachers is only 20% funded. Puerto Rico faces problems with lack of economic growth, widespread tax evasion. The economy has gone through a five year recession. A new government was elected in 2012 which promised not to layoff government workers and teachers and find ways to fund pensions. Electronic receipts are now made a requirement for financial transactions to ensure sales taxes are collected. There are risks of a downgrade in credit ratings.

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This editorial in the WSJ says Puerto Rico is a failed welfare state and has similiarities to the problem in Greece with a bloated public sector (25% of the workforce in the public sector). It points out that the benefits are generous even though the employment is shrinking by 14% since 2005, as 300,000 young people have left for the U.S. since 2005. Welfare benefits it points out are $1743 a month compared to $1159 for minimum wage work. Puerto Rico's Governor Alejandro Padilla says the $72 billion debt "is not payable." Debt is 100% of GNP. Three public pension funds and the Electric Power Authority face serious problems. To manage its finances Puerto Rico has taxed ever higher, increasing sales taxes to 11.5%. The editorial says Puerto Rico is ready for a Detroit style restructuring of the debt, and rewriting of labor and other contracts following the U.S. giving access to Chapter 9 bankruptcy to Puerto Rico, doing this with orderly restructuring.

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Hedge funds, private equity and other investors are showing interest in providing a $2 billion loan to Puerto Rico at yields approaching 10%. This is almost twice the rate a highly rated city pays in the municipal debt market. Moody's rates Puerto Rico one notch above junk.

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Puerto Rico is expected to sell $3 billion in new debt at rates of between 8.62% to 8.87%. Investors get the higher yields with the general obligation pledge- the constitution states all the island's available resources would be used to see that investors are protected. The borrowing at lower rates than expected gives time for the region to help restore the stability of its finances.