Welfare and Taxes: Extending Benefits and Taxes to Puerto Rico, Virgin Islands, Guam, and American Samoa
HRD-87-60
Published: Sep 15, 1987. Publicly Released: Sep 15, 1987.
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Highlights
Pursuant to a congressional request, GAO analyzed the potential effects of fully extending Supplemental Security Income (SSI), Aid to Families with Dependent Children (AFDC), Medicaid, foster care, Child Support Enforcement, and Food Stamp benefits, and federal income taxes, to Puerto Rico, the Virgin Islands, Guam, and American Samoa.
Recommendations
Matter for Congressional Consideration
| Matter | Status | Comments |
|---|---|---|
| Should Congress endeavor to make changes in the programs or taxes, it may wish to consider extending one program at a time to an area or subarea on an experimental basis, and determining the actual costs and the extent and nature of other effects. | Committee attempts to introduce legislation over several months have been frustrated by area representatives' opposition. GAO was told that each time a bill was drafted, congressional delegates presented the bills to their respective area governments, and each time the bills were opposed. The Committee does not expect to introduce legislation to implement the recommendation in the future. | |
| Should Congress endeavor to make tax changes, it may wish to consider gradually increasing taxes, such as by partially reducing section 936 credits, to raise revenue to cover the cost of extending welfare programs. In addition, should Congress consider extending U.S. income taxes to area residents and corporations, it may wish to assess the propriety of such actions in view of the issues raised by area officials. | Committee attempts to introduce legislation over several months have been frustrated by area representatives' opposition. GAO was told that each time a bill was drafted, area congressional delegates presented the bills to their respective area governments, and each time the bills were opposed. The Committee does not expect to introduce legislation to implement the recommendation in the future. |
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Topics
Eligibility criteriaIncome maintenance programsIncome taxesMedicaidState-administered programsTax creditTax lawTerritories and possessionsSupplemental security incomeTaxes