"Yet, individuals and corporations in Puerto Rico pay no federal income tax"

This quote by Dick Thornburgh is describing the truth that people and corporations in Puerto Rico are exempt from paying federal income tax. This is due to the truth that Puerto Rico is an unincorporated territory of the United States, and as such, is not subject to the very same tax laws as the remainder of the country. This implies that people and corporations in Puerto Rico are not required to pay federal income tax, although they may still undergo regional taxes. This exemption from federal earnings tax can be beneficial to those living and doing business in Puerto Rico, as it can assist to lower their total tax burden. However, it is necessary to keep in mind that this exemption does not apply to all taxes, and individuals and corporations in Puerto Rico might still be needed to pay other taxes, such as Social Security and Medicare taxes.