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Puerto Rico

Puerto Rico, officially the Commonwealth of Puerto Rico (Spanish: "Estado Libre Asociado de Puerto Rico" [literally, English: "Associated Free State of Puerto Rico"), is a self-governing unincorporated territory of the United States located in the northeastern Caribbean, east of the Dominican Republic and west of the Virgin Islands. The territory is composed of an archipelago that includes the main island of Puerto Rico and a number of smaller islands and keys, the largest of which are Vieques, Culebra, and Mona. The main island of Puerto Rico is the smallest by land area but third largest by population among the four Greater Antilles ( Cuba, Hispaniola, Jamaica, and Puerto Rico).

Puerto Ricans often call the island Borinquen, from Borikén, its indigenous Taíno name. The terms boricua and borincano derive from Borikén and Borinquen respectively, and are commonly used to identify someone of Puerto Rican heritage. The island is also popularly known as "La Isla del Encanto", which translated means "The Island of Enchantment."

On July 25, 1898, during the Spanish-American War, Puerto Rico was invaded by the United States with a landing at Guánica. As an outcome of the war, Spain ceded Puerto Rico, along with Cuba, the Philippines, and Guam to the U.S. under the Treaty of Paris.

The United States and Puerto Rico thus began a long-standing relationship. Puerto Rico began the 20th century under the military rule of the U.S. with officials, including the governor, appointed by the President of the United States. The Foraker Act of 1900 gave Puerto Rico a certain amount of popular government, including a popularly-elected House of Representatives. In 1917, the Jones-Shafroth Act granted Puerto Ricans U.S. citizenship and provided for a popularly-elected Senate to complete a bicameral Legislative Assembly. As a result of their new U.S. citizenship, many Puerto Ricans were drafted into World War I and all subsequent wars with U.S. participation.

In 1947, the U.S. granted Puerto Ricans the right to democratically elect their own governor. Luis Muñoz Marín was elected during the 1948 general elections, becoming the first popularly-elected governor of Puerto Rico. In 1950, the Truman Administration allowed for a democratic referendum in Puerto Rico to determine whether Puerto Ricans desired to draft their own local constitution. A local constitution was approved by a Constitutional Convention on February 6, 1952, ratified by the U.S. Congress, approved by President Truman on July 3 of that year, and proclaimed by Gov. Muñoz Marín on July 25, 1952, the anniversary of the 1898 arrival of U.S. troops. Puerto Rico adopted the name of Estado Libre Asociado (literally translated as " Free Associated State"), officially translated into English as Commonwealth, for its body politic.

Under the Constitution of Puerto Rico, Puerto Rico is described as a 'Commonwealth' and Puerto Ricans enjoy a degree of administrative autonomy similar to that of a U.S. state. Puerto Ricans are statutory U.S. citizens, but since Puerto Rico is an unincorporated territory and not a U.S. state, the U.S. Constitution does not enfranchise U.S. citizens residing in Puerto Rico. Puerto Rico does participate in the internal political process of both the Democratic and Republican parties in the U.S., accorded equal-proportional representation in both parties, and delegates from the islands vote in each party's national convention.

Puerto Rico is classified by the U.S. government as an independent taxation authority by mutual agreement with the U.S. Congress. Contrary to common misconception, residents of Puerto Rico pay some U.S. federal taxes: import/export taxes, federal commodity taxes, social security taxes, etc. Most residents do not pay federal income tax but pay federal payroll taxes (Social Security and Medicare), and Puerto Rico income taxes. But federal employees, or those who do business with the federal government, Puerto Rico-based corporations that intend to send funds to the U.S. and others also pay federal income taxes. Because the cutoff point for income taxation is lower than that of the U.S. IRS code, and because the per-capita income in Puerto Rico is much lower than the average per-capita income on the mainland, more Puerto Rico residents pay income taxes to the local taxation authority than if the IRS code were applied to the island. Residents are eligible for Social Security benefits upon retirement. But Puerto Rico is excluded from Supplemental Security Income (SSI) and receives less than 15% of the Medicaid funding it would be allotted as a state, while Medicare providers receive only partial state-like reimbursements for services rendered to beneficiaries in Puerto Rico (even though the latter paid fully into the system).

Crops as sugar cane, tobacco, and citrus fruits have proved the most remunerative. Besides paying excellent dividends to producers, especially in the case of sugar cane, they have employed a large part of the population. It is estimated that sugar cane alone has an annual pay roll equivalent to 55 or 60 per cent of the gross income of the crop. This figure in a normal year under quota restriction may amount to approximately $30,000,000. Considering the density of population and the high prices of farms, there is no choice but to devote the best lands to the highest yielding crops. The problem lies in the redistribution of land and the reduction of absentee ownership, which exports profits with products. Source: Wikipedia