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0 pointsjameslk8y ago0 comments

That's cool for Eric and Bryan, but I was more making a point about the subject of the article: millennials who are launching startups in Puerto Rico.

The narrative that the article paints about this cohort moving to Puerto Rico just out of pure love of the island sounds starry-eyed and naive. Businesses make business decisions, and incredible tax breaks need to be factored into that rational.

At the very least, the article could have examined this point and dismissed it if it's mostly untrue. But tax incentives (not including the one I mentioned) were barely discussed.

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totalZero8y ago· 2 in thread

Millennials doing startups usually don't have much income to speak of. That's the nature of young people, and that's also the nature of startups. This is probably why there was little mention of the tax incentive; it's largely irrelevant to people who are investing their few resources into a from-scratch business.

If we're talking about business decisions, there are probably several reasons why you would NOT want to go to PR, which far outweigh the lighter tax burden.

Eric has a love of entrepreneurship and a love for Puerto Rico, and doing a GrubHub-like startup in his hometown of Ponce just totally makes sense in that context. In that light, surprisingly, I think the narrative is far from starry-eyed and naive.

jameslkOP8y ago

Fair enough. I would like to know what those reasons for not doing business in PR are, because the lenient taxes and low costs of living seem pretty compelling for startups. Especially if you're in tech and can do business overseas.

totalZero8y ago

Some people wouldn't want to run businesses in a Spanglophone territory where shipping is more expensive and electricity can be spotty. The local economy may not be quite as strong depending on your industry, and meanwhile you're sending your kids to private schools because the public ones are questionable. Hospitals are less efficient and many government functions, including the ones with which your company interacts, are slow. Supermarket items cost more than they do in the contiguous states, as do gasoline, natural gas, and electricity. And you will need a car because public transportation is not so good, and often nonexistent. Culturally, there's a very relaxed vibe and a strong sense of economic pessimism, which isn't exactly the hopeful and driven mentality that you may want for a startup.

So maybe you're paying less in taxes but your lifestyle, company culture, and ease of doing business worsen. #tradeoffs

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