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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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College Board Changes AP African American Studies After Backlash From DeSantis Amid Education Culture War

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As requested by DeSantis, the College Board removed lessons on contemporary topics including Black Lives Matter, queer studies, and reparations.


College Board Rolls Out Curriculum

The College Board, which oversees Advanced Placement high school courses, announced an official curriculum framework for its new, landmark Advanced Placement African American studies on Wednesday.

The announcement, made on the first day of Black History Month, has faced scrutiny for seeming to scale back a number of relevant subjects that Florida Gov. Ron DeSantis (R) and other state education officials had criticized.

In January, DeSantis said that the new course would be banned in Florida unless changes were made, arguing that a draft version of the course was “woke.” 

Education officials claimed that the class, which had been in the making for nearly a decade, violated a recent state law dubbed the Stop WOKE Act. The legislation regulates public school instruction on race by banning critical race theory and any education that describes some groups as oppressed and others as privileged based on race or sex.

Democrats denounced DeSantis’ action as a political stunt and urged the College Board to maintain its principles.

According to reports, many historical topics like slavery largely remain intact from the previous draft. However, important contemporary issues like Black Lives Matter, affirmative action, queer studies, reparations, and intersectionality — all of which Florida leaders objected to — were removed from curriculum requirements and are no longer part of the AP exam.

Instead, those areas of study have been downgraded to be part of a list of options students can pursue for a mandatory research project. The College Board also added a new research project idea to that list that will certainly please the right: “Black conservatism.”

It has additionally been reported that the organization pulled names of multiple Black authors the state education officials had flagged as problematic, including many famous and pioneering Black scholars who wrote about critical race theory, the queer experience, and Black feminism. 

The College Board defended itself against criticism in a press release announcing the changes, claiming that the process of developing the framework “has operated independently from political pressure.”

DeSantis’ Ongoing Culture War

DeSantis’ attempts to influence the national curriculum of an AP course are just his latest in a much broader effort to control what is and is not taught in public schools.

Just one day before the College Board announced the revised course, the governor outlined what The New York Times described as “his most aggressive swing yet at the education establishment.”

Specifically, he proposed a massive overhaul to higher education in the state that would defund and eliminate diversity and equity programs, mandate courses on Western civilization, and reduce tenure protections that are essential to ensure professors have freedom of expression.

Furthermore, the effects of another law DeSantis signed last year are now just beginning to materialize. The policy, which went into effect this July, requires every school book to be age-appropriate, “free of pornography,” and “suited to student needs.” 

To follow those guidelines, school books have to be approved by a certified media specialist who has undergone specific training.

Notably, the law also states that teachers can be charged with third-degree felonies if they “knowingly or unknowingly” give students access to a book that the specialists say is harmful — meaning that they could face up to five years in prison and a $5,000 fine.

Last month, the state education department clarified that the rule does not just apply to school libraries, but also to any books a teacher keeps in their classroom too. 

Multiple outlets reported this week that records they obtained show at least two school districts have now directed teachers to either remove their books or hide them until review to avoid the possibility of going to jail.

See what others are saying: (The New York Times) (The Washington Post) (The Associated Press)

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Biden Announces Plan to End COVID Emergency in May

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The decision would drastically change the government’s long-standing pandemic response and shift Americans’ access to COVID-related services.


Emergency Declarations at an End

In a statement Monday, The White House announced that it would be ending the COVID national emergency and public health emergency declarations on May 11.

The move will entirely restructure the federal government’s response to the pandemic to treat it as endemic and upend policies that have been in place for the last three years. Although more than 500 people in the U.S. are still dying from COVID on average each day — which is around two times the number of daily deaths during a bad flu season — life has largely returned to normal.

Most Americans are vaccinated, and even President Joe Biden himself said the pandemic was “over” back in September. The new announcement comes in part as a response to resolutions Republicans brought to the House floor last week that would end the declarations immediately.

“An abrupt end to the emergency declarations would create wide-ranging chaos and uncertainty throughout the health care system — for states, for hospitals and doctors’ offices, and, most importantly, for tens of millions of Americans,” the White House argued.

Lapses in Coverage and Care

Federal officials decided that a phase-out would make more sense because the U.S. has come to rely on several systems and benefits under the emergencies.

One of the most significant changes that will have the biggest impact on Americans in their day-to-day lives is access to COVID tests, treatments, and vaccines that have been free throughout the pandemic.

Once the emergencies end, a very complex wave of changes will take place that differs from person to person depending on their insurance — or lack thereof — and even possibly what state they live in.

Currently, people with private health insurance or Medicare coverage have been allowed eight free COVID tests a month and insurers had to cover those tests, even if they were administered out of network.

Once the emergency ends, some Americans will have to pay out of pocket, as well as for antiviral COVID treatments like Paxlovid. 

Notably, it has been reported that vaccines will still be included for all those people covered by both private and public insurance. That, however, may not be the case for those without insurance — a group that is also more likely to be the most affected by rising costs for tests and treatments.

Jen Kates, a senior vice president at the Kaiser Family Foundation, told The Washington Post that when the emergency declarations end, states that opted to provide Medicaid coverage for tests, treatments, and shots will lose the federal funds that matched costs at 100%.

“To me, that’s the biggest issue for the general public to think about,” she said. “The uninsured and underinsured have no guaranteed access to covid vaccines, tests or treatments.”

When it comes to vaccines, those costs could be significant. Moderna and Pfizer have both said they might charge as much as $130 per dose of vaccine once the federal government stops paying and the shots are transitioned to the private market. That figure is nearly quadruple what federal offices have paid for the doses.

The shift to the private market could happen fairly soon, especially because Republicans have refused Biden’s request that they put billions of dollars towards additional free COVID testing and shots to extend those efforts.

There could also be a spike in the number of uninsured or underinsured Americans because the $1.7 trillion spending bill passed last year ends a rule that banned states from kicking people off Medicaid, leaving millions at risk of losing coverage.

Other Possible Outcomes

Ending the declarations could also set up a battle around immigration because the Biden administration has said the move will bring an end to Title 42 — the Trump-era public health measure that placed restrictions on border crossings and other migrant policies.

Biden has previously tried to cut the program, but the Supreme Court kept it in place. House Republicans rejected the White House’s claim that the program would be terminated, arguing it is not tied to the public health emergency.

Beyond that, the termination of the declarations would require health providers to make numerous adjustments because many of the flexibilities they were allowed in a number of areas would be cut. 

As a result, the administration says a phase-out of those policies over the next few months is necessary, arguing that hospitals and nursing homes “will be plunged into chaos” if they are cut immediately. House Republicans, however, are insistent on moving forward their legislation that would do just that, though the Democratic-controlled Senate could block their proposals.

See what others are saying: (The New York Times) (The Washington Post) (The Associated Press)

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Conservatives are Mad at “Woke” Xbox for Minor Climate-Related Updates

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The fury comes after Xbox announced it was slightly altering existing consoles to better utilize and save energy.


Same War, New Battlefield

Mere days after M&M canceled their “spokescandies” due to backlash from the right, led largely by Fox News’ Tucker Carlson, conservatives have found a new front for their ongoing culture war: Xbox.

Carlson spent months complaining that small character redesigns were “woke” because they made the animated anthropomorphized M&M’s — in his own words — “less sexy.” His campaign finally proved successful on Monday when the company announced it would be doing away with the spokescandies and replacing them with actress Maya Rudolph.

Conservatives, now facing a sudden dearth of non-issues to complain about, quickly found a new issue to rage against. Xbox announced in a blog post earlier this month that it is making minor updates to lower its environmental impact as part of an effort to reach Microsoft’s goal of being carbon-negative by 2030.

Now, instead of having an Xbox wake up to update games, apps, and software during random times of the night, it will do that at a time of night when a user’s local energy grid is generating the most power it can from renewable sources. 

Xbox also said it would automatically update some older consoles to a power-saving mode that aims to reduce electricity consumption when it is turned off — a feature that is already the default on newer consoles.

According to The Verge, the only difference for users is that an Xbox in power-saving mode takes around 15 seconds to boot up instead of doing so immediately as the console does in “sleep” mode. The change is a small price to pay for what the outlet described as “significant” energy savings.

Xbox Under Fire

To many leading conservative voices, the minimal shifts were just another example of “woke” culture. 

While discussing M&M’s spokescandies Tuesday morning, “Fox and Friends” co-host Ainsley Earhardt brought up Xbox’s new changes with Fox radio host Jimmy Failla.

“So Xbox has also announced that they’re going woke too, you know, because of climate change,” Earhardt said.

“I mean, it’s crazy what they’re doing, but we understand what this is. It’s not that it’s actually going to offset emissions, okay — the level of reduction is infinitesimal,”  Failla claimed, without evidence. “But they’re trying to recruit your kids into climate politics at an earlier age; make them climate conscious now.”

“Yeah, I didn’t think of that — you’re right, they’re going after the children,” Earhardt agreed, despite the fact that internal data from Microsoft shows just around 10% of Xbox owners are under the age of 18.

Other prominent conservatives also did their part to bait Americans into anger on social media, including America’s Foundation, which posted a tweet stating that “the woke brigade is after video games.”

The post linked an article from the right-wing website TheBlaze, which asserted that “Xbox will force gamers to power down to fight climate change.”  That, however, is false — Xbox has said users can switch back and change the settings any time they want

Still, top lawmakers continued to share the article and spread its false claims, including Sen. Ted Cruz (R-Tx.).

“First gas stoves, then your coffee, now they’re gunning for your Xbox,” he wrote in the post, which was flagged by Twitter and given an “added context” warning.

The same warning, however, was not placed in a very similar post by Rep. Troy Nehls (R-Tx.), who also shared the article.

“They want to take your guns. They want to take your gas stoves. And now they want to take your Xbox. What’s next?” he wrote.

See what others are saying: (The Washington Post) (The Daily Beast) (VICE)

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