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Sean asked in Politics & GovernmentGovernment · 6 years ago

How do territories benefit countries, and do the territories pay taxes for military protection?

In addition to military protection, do territories get anything else from the countries that own them?

What does the US get from Puerto Rico?

What does the UK get from Bermuda?

What does China get from Hong Kong?

1 Answer

  • 6 years ago
    Favorite Answer

    Benefits from territories includes (but are not limited to):

    * Political benefits

    *** Imperialistic dreams fullfilled? Extend fronteirs?

    *** Stop advance of a rival country in certain region?

    * Military benefits:

    *** Strategic positions, bases.

    *** Areas in the middle of the ocean for stop, refuel, etc.

    * Economic benefits

    *** Minerals / natural resources deposits for explotation

    *** Trade

    *** In the case of USA and their territories federal income taxes are not applied since USA does not allow territories to have Senators and House Representatives at the Congress, and not allow them to vote for the President. Since no representation, then no federal income tax is charged (US laws). However, US territories like PR pay the same payroll taxes that workers in the states pay, without receiving the same Medicare / Medicaid benefits that residents of the states receive.

    *** US territories like PR are forced by law to use US cargo ships to move goods / merchandize between US ports and the territories. That is fine for US, but unfair to the territories since US cargo ships have way more expensive costs than ships any other country. For example, a business firm located at Puerto Rico can not contract a ship from France or Panama to bring a shipment of TV sets or food from Florida to Puerto Rico. That business company must (by law) contract a US cargo ship to do that, and pay higher costs for the delivery. That makes goods in Puerto Rico be more expensive for the customers that they should / could be.

    * Human Resources

    *** Puerto Rico universities graduates many engineers, computer science proffesionals, other proffesionals that US firms, goverment organizations, and the US Armed Forces need. Companies / organizations like US Navy, NSF, IBM, Intel, Eli Lilly, Pfizer, FBI, etc come to PR each year to interview / hire university students that are close to their graduating date. NASA have a large group of puertorrican engineers hired even before graduation (example: interviews in March / contract signed and then graduation in May, start work in June/July).

    *** Cultural exchange, diversity.

    *** Tourists destinations under same law protection

    Other benefits, list not intended to be complete.

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