The plan is funded from tax revenue – solves.
Hammond 21 {“Territorial Exceptionalism and the American Welfare State,” Andrew Hammond (Indiana University Maurer School of Law). 119 Michigan Law Review 1639 (2021), University of Florida Levin College of Law Research Paper No. 20-43. Published July 13, 2020, Accessed July 2, 2023. ssrn.com/abstract=3650434.}–CPSW–TW
Rationale #1: Federal Income Tax. The federal government has argued in both cases that the fact that Puerto Rican residents only pay federal income tax on certain sources of income provides a rational basis from excluding them from SSI, SNAP, and the Medicare subsidies.244 That’s true: residents of Puerto Rico do not pay federal income tax on most types of income.245 Unlike other Social Security benefits which are paid for through payroll taxes (taxes that Puerto Ricans pay), SSI is paid for by general tax revenue, includ ing income tax receipts.246 Yet, while the Supreme Court in Rosario states that Puerto Ricans “do not contribute to the federal treasury,” recent tax re- ceipts suggest otherwise.247 Puerto Rico contributes roughly $4 billion in an- nual tax revenue to the federal government, exceeding the contribution of several states.248