No Puerto Rico Move For Billionaire John Paulson
Contents
TOC o “1-3” h z u Executive summary PAGEREF _Toc381074927 h 1Brief summary of the article PAGEREF _Toc381074928 h 1Views on the issues PAGEREF _Toc381074929 h 2Conclusion PAGEREF _Toc381074930 h 2
Executive summaryThis article is about John Paulson a billionaire fund manager of SAN JUAN, Puerto Rico. He is the founder and president of Paulso & Co and a native of New York. There are claims in the media of his supposed intentions of moving to Puerto Rico and establishing a residence there but he denied this claims. However, he has considered investing in real estate but has absolutely no plans of making the island his permanent residence. There are also claims of mass exodus from Puerto Rico due to a stagnant economy and crime among other problems (Burton, Ruhle, & Mider, 2013).
Brief summary of the articleThere are various opposing views that are brought out in this article by several parties. The first party is the media. The media has reported severally on John Paulson’s intention to move permanently from New York to Puerto Rico Island. They base their claims on the fact that John Paulson is taking advantage of the changing tax laws and hence the move will help him cut his tax bill. The media support their report by claiming that John Paulson’s company has assets that are worth about $18 billion under its management and therefore the company would benefit if the president moved to the island (Roche La Julia ,2013).This is due to the fact that the new tax law would be of great advantage to John Paulson since as a new resident he would be exempted from tax on the gains in his capital since this is the principal source of income for extremely wealthy investors like John Paulson. The other part which is John Paulson himself denies this claims made in reports by the media. He denies having any intentions of establishing a permanent residence in Puerto Rico. He does not deny having considered real estate investments in the island but has no plans whatsoever of establishing a permanent residence in Puerto Rico.
There is totally different proposal set forth which claims that if John Paulson is really considering making Puerto Rico his home the move would be quite an unusual one. This is because many people have been moving out of Puerto Rico in the recent years due to the fact that the island’s economy has been a stagnant one. In the same island there are problems such as crime among other problems. The population has gone down and it is now 3.7 million. This raises the question as to whether moving to Puerto Rico is a wise decision.
Views on the issuesThe media has a right to report on the views they have on the matter however the person who has the answer is John Paulson himself. Therefore he should be given a chance to defend himself and tell the public his stand on the issue. My view on the issue is that John Paulson should not consider making Puerto Rico his permanent home. This is because many people are leaving the island due to the stagnant economy and other problems then why should he consider going to live let alone invest in such an area.
ConclusionI think John Paulson did not move to Puerto Rico. The change in tax law was not a good enough reason to make him move to the island. He might have considered other factors such as the stagnant economy and other problems facing the island and withdrew any intentions that he had of moving if he had any. He just continued managing SAN JUAN from New York as he was doing before.
Work cited
Burton, Katherine. Ruhle, Stephanie & Mider, Zachary. Bloomberg Businessweek.Billionaire Paulson May Move to Puerto Rico for Tax Break. (2013).Retrieved April 8, 2013 from http://www.businessweek.com/articles/2013-03-14/billionaire-paulson-may-move-to-puerto-rico-for-tax-breakRoche La Julia. Hedge Fund Billionaire John Paulson Not Defecting To Puerto Rico To Dodge Taxes. (2013).Retrieved April 8, 2013 from http://www.businessinsider.com/john-paulson-not-moving-to-puerto-rico-2013-3
