But many of these people have sufficient mobility that you have to remain under the tax level of your competition. Most of them have no actual tie to Puerto Rico and would leave in a heartbeat if they found a better deal.
Also, it turns out that these super high net worth individuals and entities have a lot of political sway. Once you start talking about raising their costs (taxes), they will put a ton of resources into making sure you are no longer in position to do so.
> But many of these people have sufficient mobility that you have to remain under the tax level of your competition.
Not really. Puerto Rico has no real competition. It's the only place you can live inside of the US without paying federal income tax. If Puerto Rico were to raise its local tax, to say, 10%, it would still be the lowest overall tax jurisdiction in the US by a mile.
But many of these people have sufficient mobility that you have to remain under the tax level of your competition. Most of them have no actual tie to Puerto Rico and would leave in a heartbeat if they found a better deal.