The United States has already given tons of aid to Puerto Rico but Obama is coming back for more and he wants American taxpayers to foot the bill.
The Daily Signal reported:
Back Again: This Time Obama Administration Wants a Taxpayer Bailout for Puerto Rico
Less than two months after Congress passed a package aimed to provide financial relief for Puerto Rico, the Obama administration is already at it again—this time seeking an outright taxpayer bailout for the U.S. territory through additional Medicaid funds and access to the earned income tax credit.
Why does Puerto Rico need help? After decades of failed economic policies and rising debt, Puerto Rico began defaulting on some of its debt payments in 2015. Faced with substantial government spending (including massive pension costs), a declining economy, and rising interest rates, Puerto Rico was on track to default on multiple other debt payments.
Under Congress’ attempted relief, most debtors still won’t receive full payment. After all, it wouldn’t be relief for Puerto Rico if it actually had to pay all its bills. Instead, the island will have access to bankruptcy-like proceedings that will allow it to write off a large portion of its debt.
This is precisely what the administration wanted. The island now has access to so-called “Super Chapter 9” bankruptcy that will allow Puerto Rico to write down not only its municipal debts (in the same way that states can choose to do), but also its constitutionally protected territorial debt.
In addition, Puerto Rico has been afforded an unprecedented stay on litigation that will allow the island’s government to operate free of legal challenges for months.
But apparently allowing the island to renege on its constitutional obligations and stripping creditors of their right to access the courts wasn’t enough. Now the administration is back at it again, seeking an outright taxpayer bailout for the island.
A bailout for Puerto Rico would set a dangerous precedent.
Next thing you know, states are going to start lining up for bailouts.