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Wealthy Investors Are Buying Property in Puerto Rico, Driving Up Prices for Locals 

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The effort is largely driven by tech investors and cryptocurrency traders who are flocking to the island for tax cuts.


Tax Incentives Drive Investors in PR

Wealthy investors are moving to Puerto Rico at record rates and causing serious issues for locals.

Many of the mainlanders settling the island are doing so to take advantage of tax incentives that were created to attract outside money to Puerto Rico, which is climbing out of bankruptcy. Under the tax break law, resident investors must acquire residency and buy property in Puerto Rico within two years of moving to qualify for a reduction of income taxes on long-term capital gains, dividends, interest, as well as revenues from their services. 

Notably, the law has been in place in some fashion since 2012, but the appeal of the tax breaks has increased significantly in recent years.

After Hurricane Maria devastated the island in 2017, displacing thousands from their homes, housing prices dropped and investors moved in to swoop up the cheaper properties. 

The number of applications from people trying to become resident investors has also skyrocketed during the pandemic as more people move to remote work. According to The New York Times, the island had received a record 1,349 applications as of October 2021.

As The Times notes, while there are new settlers beyond just those who want tax breaks, “it is the finance and tech investors who have formally applied for tax-break status who have drawn the most attention.”

Specifically, the island has attracted many cryptocurrency traders, but other prominent names have moved there as well. Last February, YouTuber Logan Paul announced on his podcast that he was moving from Los Angeles to Puerto Rico, in part because of the tax breaks.

“It’s crazy here in California, paying taxes, and for what?” he said. “The streets are not fixed, homeless people everywhere, a dearth of employment, COVID not handled.” 

Rapid Gentrification

The influx of resident investors snapping up properties has dramatically driven up rent and housing prices, forcing many people out of their homes. In some cases, locals have been pushed out of their towns entirely as the real estate boom moves from the capital of San Juan to smaller towns. 

In addition to moving to the island themselves, many resident investors are also buying residential properties that they either resell at higher prices or turn into vacation rentals.

Not only does this turn entire neighborhoods into Airbnbs for wealthy tourists, but it also creates a housing shortage that makes it harder for residents who have been pushed out of their homes to afford new ones, especially given that 43% of Puerto Ricans live under the federal poverty line.

To make matters even worse, the over three million Puerto Ricans already living on the island don’t get the same tax breaks because, in order for an investor to qualify, they have to prove they have not been a resident of Puerto Rico for at least ten years prior. 

Backlash and Protests

The growing crisis has prompted widespread outrage among many locals, who have pushed for the end of the tax breaks and for the resident investors to leave.

In San Juan, anti-gentrification posters have been cropping up that show pictures of Paul and Bitcoin billionaire Brock Pierce with the text: “This is what our colonizers look like.”

Last month, dozens of protestors gathered in old San Juan to call for the tax breaks to end. The demonstrators also assembled in front of a former children’s museum owned by Pierce, where they graffitied “Brock Pierce is a colonizer” and “Gringo go home” on the outside walls.

However, Puerto Rican Governor Pedro Pierluisi has championed the policy and seems unlikely to remove it anytime soon.

“My stance has always been that statehood for Puerto Rico is the best option,” he told Time in April, adding that until then, the law is part of the ongoing “effort to attract population and new investment.”

The majority of the island has voted for statehood multiple times, including most recently in 2020, but the power to make Puerto Rico a state ultimately resides in the hands of Congress.

See what others are saying: (The New York Times) (Time) (The Los Angeles Times)

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Lincoln College to Close for Good After COVID and Ransomware Attack Ruin Finances

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Last year, 1,043 schools in the U.S. were the victim of ransomware attacks, including 26 colleges or universities, according to an analysis by Emsisoft.


One of the Only Historically Black Colleges in the Midwest Goes Down

After 157 years of educating mostly Black students in Illinois, Lincoln College will close its doors for good on Friday.

The college made the announcement last month, citing financial troubles caused by the coronavirus pandemic and a ransomware attack in December.

Enrollment dropped during the pandemic and the administration had to make costly investments in technology and campus safety measures, according to a statement from the school.

A shrinking endowment put additional pressure on the college’s budget.

The ransomware attack, which the college has said originated from Iran, thwarted admissions activities and hindered access to all institutional data. Systems for recruitment, retention, and fundraising were completely inoperable at a time when the administration needed them most.

In March, the college paid the ransom, which it has said amounted to less than $100,000. But according to Lincoln’s statement, subsequent projections showed enrollment shortfalls so significant the college would need a transformational donation or partnership to make it beyond the present semester.

The college put out a request for $50 million in a last-ditch effort to save itself, but no one came forward to provide it.

A GoFundMe aiming to raise $20 million for the college only collected $2,452 as of Tuesday.

Students and Employees Give a Bittersweet Goodbye

“The loss of history, careers, and a community of students and alumni is immense,” David Gerlach, the college’s president, said in a statement.

Lincoln counts nearly 1,000 enrolled students, and those who did not graduate this spring will leave the institution without degrees.

Gerlach has said that 22 colleges have worked with Lincoln to accept the remaining students, including their credits, tuition prices, and residency requirements.

“I was shocked and saddened by that news because of me being a freshman, so now I have to find someplace for me to go,” one student told WMBD News after the closure was announced.

When a group of students confronted Gerlach at his office about the closure, he responded with an emotional speech.

“I have been fighting hard to save this place,” he said. “But resources are resources. We’ve done everything we possibly could.”

On April 30, alumni were invited back to the campus to revisit the highlights of their college years before the institution closed.

On Saturday, the college held its final graduation ceremony, where over 200 students accepted their diplomas and Quentin Brackenridge performed the Lincoln Alma Mater.

Last year, 1,043 schools in the U.S. were the victim of ransomware attacks, including 26 colleges or universities, according to an analysis by Emsisoft.

See what others are saying: (The New York Times) (Herald Review) (CNN)

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U.S. Tops One Million Coronavirus Deaths, WHO Estimates 15 Million Worldwide

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India’s real COVID death toll stands at about 4.7 million, ten times higher than official data, the WHO estimated.


One Million Dead

The United States officially surpassed one million coronavirus deaths Wednesday, 26 months after the first death was reported in late February of 2020.

Experts believe that figure is likely an undercount, since there are around 200,000 excess deaths, though some of those may not be COVID-related.

The figure is the equivalent of the population of San Jose, the tenth-largest city in the U.S., vanishing in just over two years. To put the magnitude in visual perspective, NECN published a graphic illustrating what one million deaths looks like.

At the beginning of the pandemic, the White House predicted between 100,000 and 240,000 Americans would die from the coronavirus in a best-case scenario.

By February 2021, over half a million Americans had died of COVID.

The coronavirus has become the third leading cause of death in the U.S. behind heart disease and cancer.

The pandemic’s effects go beyond its death toll. Around a quarter of a million children have lost a caregiver to the virus, including about 200,000 who lost one or both parents. Every COVID-related death leaves an estimated nine people grieving.

The virus has hit certain industries harder than others, with food and agriculture, warehouse operations and manufacturing, and transportation and construction seeing especially high death rates.

People’s mental health has also been affected, with a study in January of five Western countries including the U.S. finding that 13% of people reported symptoms of PTSD attributable to actual or potential contact with the virus.

Fifteen Million Dead

On Thursday, the World Health Organization estimated that nearly 15 million people have died from the pandemic worldwide, a dramatic revision from the 5.4 million previously reported in official statistics.

Between January 2020 and the end of last year, the WHO estimated that between 13.3 million and 16.6 million people died either due to the coronavirus directly or because of factors somehow attributed to the pandemic’s impact on health systems, such as cancer patients who were unable to seek treatment when hospitals were full of COVID patients.

Based on that range, scientists arrived at an approximate total of 14.9 million.

The new estimate shows a 13% increase in deaths than is usually expected for a two-year period.

“This may seem like just a bean-counting exercise, but having these WHO numbers is so critical to understanding how we should combat future pandemics and continue to respond to this one,” Dr. Albert Ko, an infectious diseases specialist at the Yale School of Public Health who was not linked to the WHO research, told the Associated Press.

Most of the deaths occurred in Southeast Asia, Europe, and the Americas.

According to the WHO, India counts the most deaths by far with 4.7 million, ten times its official number.

See what others are saying: (NBC) (U.S. News and World Report) (Scientific American)

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Official Says Missing Alabama Convict and Corrections Officer Had a “Special Relationship”

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Authorities have also said they now believe the officer willfully helped the inmate escape.


New Information on Missing Inmate & Officer

Authorities in Alabama revealed Tuesday that Assistant Director of Corrections for Lauderdale County Vicky White, who is accused of helping a murder suspect Casey Cole White escape from jail, had a “special relationship” with the inmate.

“Investigators received information from inmates at the Lauderdale County Detention Center over the weekend that there was a special relationship between Director White and inmate Casey White,” Lauderdale County Sheriff Rick Singleton said in a statement. “That relationship has now been confirmed through our investigation by independent sources and means.”

Officials have previously said that the two are not related, despite their shared surname.

Singleton elaborated on the nature of the relationship while speaking to CNN later on Tuesday. He said it took place “outside of her normal work hours” and added that although it did not include “physical contact,” he still characterized it as “a relationship of a different nature.”

“We were told Casey White got special privileges and was treated differently while in the facility than the other inmates,” Singleton said.

Also on Tuesday, the Marshals Service issued a statement confirming that authorities believe Officer White had helped Mr. White escape. The authorities described her as a “wanted fugitive” and offered a $5,000 reward for any information on her whereabouts. Earlier this week, the Marshals Service also offered a $10,000 reward for any information that could lead to Mr. White’s capture.

Singleton echoed the belief that Officer White’s actions were intentional while speaking to Good Morning America Wednesday.

“I think all of our employees and myself included were really hoping that she did not participate in this willingly. But all indications are that she absolutely did,” he said. “We’re very disappointed in that because we had the utmost trust in her as an employee and as an assistant director of corrections.”

Mysterious Escape

Vicky White and Casey White were last seen leaving the Lauderdale County jail just after 9:30 a.m. Friday. The officer told other employees that she was taking the inmate to a mental health evaluation at a courthouse just down the road, and that she would be going to a medical appointment after because she was not feeling well.

Officials later said her actions violated an official policy that required two sworn deputies to transport people with murder charges. In 2020, Mr. White was charged with two counts of capital murder in connection to a fatal stabbing he confessed to and was awaiting his trial in Lauderdale County.

Mr. White was also serving time for what officials said was a “crime spree” in 2015 which included home invasion, carjacking, and a police chase. He had also previously tried to escape from jail, police said.

It wasn’t until 3:30 p.m. on Friday that a jail employee reported to higher-ups that he was not able to reach Officer White on her phone and that Mr. White had never been returned to his cell.

During a press conference that same night, Singleton told reporters that there had never even been a scheduled mental health evaluation. At another briefing Monday, he announced that an arrest warrant had been issued for Vicky on a charge of “permitting or facilitating an escape in the first degree.”

At the time, Singleton said it was unclear “whether she did that willingly or was coerced or threatened” but added, “we know for sure she did participate.” 

See what others are saying: (CNN) (ABC News) (NPR)

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