MIAMI, Sept 2 (Reuters) – Puerto Rico's governor on Thursday signed a law authorizing property-tax breaks and other government incentives to stimulate the U.S. commonwealth's beleaguered real estate markets.
The law okayed by Governor Luis Fortuno in Guaynabo, Puerto Rico, was expected to cost the Caribbean island's government an estimated $77 million before it expires next June and covers the sale, purchase and rental of residential properties, as well as commercial real estate transactions.
One of a series of moves by Fortuno's administration to bring Puerto Rico out of a long recession, the program offers buyers waivers on transaction fees and new property investors a pass on property taxes for five years, according to a news release.
The program also includes exemptions from capital gains taxes, a break for landlords on rental profits and vouchers for first-time home buyers.
Access to broadband technology is essential to the success of businesses in Latino communities said federal agency representatives at the National Association for Latino Community Asset Builders summit in San Antonio.
"Not having broadband once was considered a nuisance. But now, broadband is essential to opportunity and participation," Tom Reed, FCC communications and business opportunities director, told Latino non-profit organizations at the NALCAB annual summit held last week.
Reed said that with Latinos approaching one-third of the U.S. population, "Latinos are an important part of our broadband agenda."
The FCC along with the U.S. Small Business Administration and the National Telecommunication and Information Administration has various programs in the works to expand the reach of broadband lines to small and minority-owned businesses.
Anna Gomez, NTIA deputy administrator, says fewer than 40 percent of Latino households have broadband connections in the United States and too many households believe broadband is not necessary.
"'Not needing it' will not cut it in this economy," Gomez said. She added that small businesses especially need access to broadband to participate in e-commerce, where sales are growing five times faster than non-electronic retail methods.
NALCAB helps nonprofits attract funding from government programs and private foundations.
More than ever before, the importance of broadband access is being discussed in Washington and amongst Telecom companies across the U.S. Perhaps due to the disparity between other minority groups' use of broadband and that among Latinos (44% of Latinos have adopted broadband usage compared with more than 56% of African-Americans and 67% for White-Americans)* the issue is being discussed whether Broadband is essential for Latino's success. Is this technology's importance being blown out of proportion?
The importance of the issue is being highlighted by the government's proposed intervention in internet technologies through "Net Neutrality," the billions of dollars (with a "B") in resources being earmarked for projects across the country**, and the many studies demonstrating correlations between access to technologies and economic success. Essentially, however, all agree that the future of broadband will a have wide-ranging impact on all Americans, not just minorities. But specifically considering the case of minorities, lack of access or slow adoption will have a tremendous impact on their futures.
Simply consider the value that broadband access can bring to any household. In today's technology-driven world, online access can provide freedom like no other resource. You can do pretty much anything online from shopping, banking, attending classes, placing prescriptions, to even researching and running a business. Although the former all provide convenience to the end-user, the latter can "level the playing field" to a budding entrepreneur looking to compete in an ever-tightening economic environment.
Only through online resources can a small farmer or jewelry designer compete with the likes of ConAgra or Tiffany. Imagine the economic benefits brought to a community when one of its members expands their corner store to the unlimited universe that is the Internet! With additional revenues will come additional jobs, less required welfare, higher tax contributions for community services, gifting to non-profits and Churches who support social programs, and in the end demand will rise for more goods and services that others within the community will find the incentive to provide: hence, the economic circle of life that benefits all.
All that is needed is that one missing link that can spark the entrepreneurial spirit enough to create a ripple effect that will forever shift the paradigm within a community. Could increased access and education in Broadband provide that spark?
August 30, 2010, Washington, D.C. – Amidst seemingly endless negative news from the economic sector, Puerto Rico recently developed a project named "Via Verde," which aims to provide a much needed boost to the Puerto Rican economy. The National Puerto Rican Chamber of Commerce supports the project, whose goal is to construct a natural gas pipeline to distribute an alternative form of energy production throughout the island, as a means to spur economic development.
Although some costs of living in Puerto Rico, such as housing and land costs, are lower than on the U.S. mainland, energy costs have risen to almost double the average U.S. household costs. One of the Governor's and other legislators' most important objectives has been to lower those costs and bring much needed relief to a population who already has an average income lower than any U.S. state.
The "Via Verde" project will convert several coal-generated power plants to natural gas and will include the construction of a pipeline from Guayanillas to Arecibo and eventually to San Juan. Although costs for the project are expected to be greater than $350 million, the savings are expected to be much greater.
"The first phase, Costa Sur, would bring savings of $113 million to our citizens, by reducing energy costs by the end of this year," claims Governor Fortuño. In addition, over 4000 jobs will be created, which, although only temporary, will give a short-term boost to an economy ravaged by unemployment numbers not experienced anywhere in the U.S. Upon completion, total savings to Puerto Ricans is expected to be over $1 billion.
Aside from the obvious job creation and energy cost savings, Puerto Rico will also benefit from a decreased dependency on foreign oil. With natural gas power expected to approach 72% of total production and oil dropping to only 12% by 2012, long-term environmental, security, and economic returns will be positive.
The National Puerto Rican Chamber of Commerce is a non-profit advocacy group created to promote entrepreneurship, economic development, and economic freedom amongst Puerto Ricans and other minorities throughout the U.S. Feel free to contact the Chamber's Public Relations Department at 866-572-5222, ext. 4 or via email: PublicRelations@NPRChamber.org.
We have always touted entrepreneurship as one of the best ways to create jobs and wealth. The author, and those quoted within the article, agree with this philosophy.
We have chosen to highlight the following section as it encompasses our philosophy on entrepreneurial education and economic enhancement:
Michael D. Woodard, president and CEO of the Washington, D.C.-based consulting firm Woodard and Associates and the author of Black Entrepreneurs in America: Stories of Struggle and Success, believes [historically black colleges and universities] would be remiss if they do not provide a curriculum on entrepreneurship.
"The most effective way for one generation to transfer wealth to the next generation is to engage in entrepreneurial activities," Woodard says.
"Entrepreneurship is one way of providing jobs in the African-American community," adds Woodard, noting that many minority-owned businesses have staffs that are over 50 percent non-White.
"African-Americans have had the same or greater interest rates in entrepreneurship (as other racial/ethnic groups)," says Woodard, a sociologist who has researched work-force diversity and labor force patterns. As evidence, he cited recent U.S. Census data. In July, the Census Bureau released its "Preliminary Estimates of Business Ownership by Gender, Ethnicity, Race and Veteran Status: 2007" report that revealed a 45.6 percent increase in the number of minority-owned businesses from 2002 to 2007.
This number is more than twice the national rate of all U.S. businesses.
Although this article was meant to highlight the impact entrepreneurship has on the African-American community, it can equally be applied to all minorities, and frankly, all Americans. If entrepreneurship is emphasized in the classroom, and public policy allows for the free establishment and growth of innovative ventures, jobs will be created and our economy will flourish.
Whether or not you believe the majority of our Congressional leaders are out of touch with the rest of the country, it does seem safe to say that their finances are:
The wealthiest members of Congress grew richer in 2009 even as the economy struggled to recover from a deep recession.
The 50 wealthiest lawmakers were worth almost $1.4 billion in 2009, about $85.1 million more than 12 months earlier, according to The Hill's annual review of lawmakers' financial disclosure forms.
Sen. John Kerry (D-Mass.) tops the list for the second year in a row. His minimum net worth was $188.6 million at the end of 2009, up by more than $20 million from 2008, according to his financial disclosure form.
While the economy struggled through a recession during much of 2009 and the nation's unemployment rate soared to 10 percent, the stock market rebounded, helping lawmakers with large investments. The S&P 500 rose by about 28 percent in 2009.
Total assets for the 50 wealthiest lawmakers in 2009 was $1.5 billion — that's actually a nearly $36 million drop from a year ago. But lawmakers reduced their liabilities by even more, cutting debts by $120 million last year.
There are various reasons why asset values dropped. Some lawmakers saw their real estate holdings fall as the housing crisis intensified. A handful of lawmakers also had other investments or businesses that turned sour.
The only newcomer to the Top 10 list is Rep. Michael McCaul (R-Texas), who came straight in at No. 5. He replaced Rep. Harry Teague (D-N.M.), the 10th wealthiest member in 2008. Teague fell off the top 50 list after the value of a company he has a stake in — Teaco Energy Services Inc. — fell in value from $39.6 million in 2008 to at the least $1 million in 2009.
There were a few other new faces in the Top 50, including Rep. Patrick Kennedy (D-R.I.), who received an inheritance after his late father, Sen. Edward Kennedy (D-Mass.), died in 2009.
Sen. Ron Wyden (D-Ore.) and Rep. Tom Petri (R-Wis.) also made the list.
Twenty-seven Democrats along with 23 Republicans make up the 50 richest in Congress; 30 House members and 20 senators are on the list.
The bulk of Kerry's wealth is credited to his spouse, Teresa Heinz Kerry, who inherited hundreds of millions of dollars after her late husband, the ketchup heir Sen. John Heinz (R-Pa.), died in a plane crash in 1991.
Rep. Darrell Issa (R-Calif.), with a net worth of $160.1 million, is the second-richest member of Congress under The Hill's formula, even though his wealth declined by more than $4 million in 2009.
He is followed by Rep. Jane Harman (D-Calif.), who saw her net wealth leap to $152.3 million, a jump of more than $40 million from a year ago.
The rest of the top 10 are Sen. Jay Rockefeller (D-W.Va.), McCaul, Sen. Mark Warner (D-Va.), Rep. Jared Polis (D-Colo.), Rep. Vern Buchanan (R-Fla.), Sen. Frank Lautenberg (D-N.J.) and Sen. Dianne Feinstein (D-Calif.).
To calculate its rankings, The Hill used only the lawmakers' financial disclosure forms that cover the 2009 calendar year.
Lawmakers are only required to report their finances in broad ranges. For example, a $2.5 million vacation home in Aspen, Colo., would be reported as being valued at between $1 and $5 million on a congressional financial disclosure form.
To come up with the most conservative estimate for each lawmaker's wealth, researchers took the bottom number of each range reported. Then, to calculate the minimum net worth for each senator and member, the sum of liabilities was subtracted from the sum of assets.
As a result, the methodology used to find the Top 50 wealthiest in Congress can miss some of the richest lawmakers.
Sen. Herb Kohl (D-Wis.) is certainly one of the wealthiest lawmakers on Capitol Hill. As owner of the NBA's Milwaukee Bucks, Kohl has a $254 million asset on his hands, according to Forbes magazine.
But under The Hill's methodology, his team ownership only counts for $50 million, the highest range reported on the congressional financial disclosure form. Because of high liabilities on his 2009 form, Kohl actually is listed as being more than $4.6 million in debt on the 2009 form.
In a recent excerpt from an article by the WSJ, Mr. Carl Schramm, President of the Kauffman Foundation, makes comments about investments in Minority Entrepreneurship:
Finally, the foundation goes out of its way to support minority entrepreneurship. Mr. Schramm doesn't use any social-justice lingo to explain the program, but reverts to a kind of charming nerd-speak. He says that after a lot of analysis, Kauffman has found that there is "the greatest delta among black males." In other words, for a given amount of entrepreneurial investment, that group will see the greatest improvement in its economic status. While there are many activists out there saying that foundations should give more to minorities, you won't find many who offer the Kauffman philosophy: "We should have a proportionate number of black billionaire owners of businesses as exists in the majority community," says Mr. Schramm.
We too have seen a similar nexus between investment in Hispanic Entrepreneurs and social gains. Overall investment in Entrepreneurship will promote the greatest societal gains, however, research has proven that greater gains are obtained within those societal segments where the greatest economic disparities currently exist.
