Name: Joe Rogan Experience #1002 - Peter Schiff
Uploaded: 2017-08-24T00:28:24.000Z
Description: Watch the stand-up comedy video 'Joe Rogan Experience #1002 - Peter Schiff' from PowerfulJRE on Comedy Buff. Published 2017-08-24. Transcript available.

Watch the stand-up comedy video 'Joe Rogan Experience #1002 - Peter Schiff' from PowerfulJRE on Comedy Buff. Published 2017-08-24. Transcript available.

Joe Rogan Experience #1002 - Peter Schiff

five four three two one
boom and we're live peter schiff how are you sir i am good i am good thanks for
having me back
thanks for coming back yeah it's been three years it has been a while you've
grown a lot i'm so
impressed with what's happened to your podcast your popularity and thanks man
thank you hopefully
a little of that trickles down to me i'm sure it will you look good dude you
look healthy
you look vibrant well you know i got a little bit of uh beard going i've been
living in puerto rico
yeah we were talking about that off air tell me about that like what what
prompted that decision
well you know i live in connecticut and unlike southern california where you
are fortunate
enough to still live i i lived here for a long time years and years ago but we
have seasons and
one of them is winter and it tends to be very long and it normally kind of you
know kind of moves into
the fall and the spring a bit and so i had been thinking for years about kind
of splitting my time
between florida and connecticut because i love new england in the summer it's
beautiful this time of
year and i like the beginning of fall you know when the leaves are still on the
trees and it's not that
cold and it's pretty and you know spring is nice too but yeah i can forget all
the winter so i was
going to move to florida until i found out about puerto rico and i found out
about this actually
i guess i read an article uh interviewing john paulson and paulson was john paulson
john paulson
billionaire hedge fund guy made a lot more money than me shorting subprime i
did the same trade i
just didn't make as much money as he did uh because i didn't start out with
nearly as much money but in
any event but but but he made a lot of money shorting subprime and he's a hedge
fund guy
and um he was investing down in puerto rico and i was like oh what's he doing
what's what's going on down
there and i found out and i never known this that puerto rico as a u.s
territory americans who live
in puerto rico don't have to pay federal income taxes on the money they earn
from puerto rico which
would include any of your capital gains on your investments and i'm like wait a
minute i mean all
i have to do is move to puerto rico i don't have to pay any federal income
taxes because anybody can
move there you don't need a a you know work visa you pick up and move there it's
just like moving to
another state right and so the minute you move there you don't have to pay
federal income taxes but
puerto rico has its own taxes so you have to pay the puerto rico taxes instead
and up until recently i
mean puerto rico's income tax i think tops out at 30 percent it's still cheaper
than the u.s and there's
no state income tax that's all you've got right is the 30 percent but a few
years ago puerto rico got
smart and they said well how do we attract businessmen entrepreneurs to move to
puerto rico if
they're not already here well let's just drop that income tax down and so they
basically created these two
laws act 20 and act 22 and act 22 is for individuals and it says hey if you
move to
puerto rico you have zero capital gains tax on any capital gains and you have
zero taxes on any interest
and dividends that you earn locally and then they passed another act which is
act 20 and they said
hey if you open up a business here you have a company you're going to pay a
four percent corporate tax to
puerto rico and then you can pass on all the profits in dividends to yourself
tax-free no tax in puerto rico
no tax in the united states and you know that's that's a great deal that seems
to be worth a tremendous
amount of money it is i mean it depends on but you you you effectively double
your income by moving
there practically i mean so because you're not you know you're not you know
splitting your income with the
government all right and and and and so i i checked it out when i heard out
about for heard about because first
it's like puerto rico do i you know do i really want to live there you know i'm
thinking west side story i don't know much about puerto rico but um
but um you know it's beautiful i mean i live in a town called dorado beach uh
and you know it's just
it's very very nice the the uh the weather and just the tropical location and
there's a lot of good
people there a lot of people have been moving there obviously i'm not the first
person to take advantage
of this and so there are a lot of people that have come from california to get
out of you know california
taxes or the northeast the midwest you know plus when you come from the midwest
to the northeast you also
you know help yourself get out of the cold weather right california it's pretty
much all a tax thing
i mean no one's leaving southern california uh other than really taxes because
it's you got such
great weather here um but i i we enjoy living there my wife enjoys it she's met
a lot of people i've met
a lot of people and you know the crazy thing is you know you have this movement
now in puerto rico
where they want to become a state which is ridiculous because if they became a
state all the problems
they have would be that much worse because puerto rico is in trouble today
despite the fact that you
don't have to pay federal income taxes there i mean that what happened was the
puerto rican
government which was very socialist they borrowed a lot of money and they you
know they they spent a lot
of money to get elected and uh you know a lot of people in puerto rico work for
the government
and a lot of people are on welfare food stamps and stuff like that but big
government is what destroyed
the puerto rican economy and they and they borrowed a lot of money but if on
top of that puerto rican
residents that actually had jobs had to pay the federal income tax you know it's
not just the
federal income tax doesn't apply down there it's the obamacare tax you know
people wanted obamacare
repealed if you move to puerto rico you've repealed it for yourself because the
taxes don't apply down
there they don't even have to pay the federal gas tax so without all those
taxes they're still in
trouble so can you imagine how much worse it would be if they had all these
taxes if all of a sudden the
irs descended on on puerto rico like an infestation of you know mosquitoes it'd
be worse than the zika
virus down there to have the irs uh so but you know there's people they've told
a lot of people
hey if we become a state you'll get more welfare right oh so vote to become a
state because but but
what puerto rico the last thing they need is a more more incentives to be on
welfare right they need
freedom they need less government they need to default on a lot of this debt
and a lot of the people that
own the bonds unfortunately have to lose some money but i think that as more
and more people move to
puerto rico i've got two businesses down there now i'm hiring people i'm
renting space i bought a lot
of property down there you know more and more people like me as people come to
puerto rico the economy is
going to improve it's going to get better uh and but if they become a state
they're going to destroy all
that potential they they have to exploit the fact that puerto rico can offer
such a great advantage
to a businessman somebody who wants to create a company employ people provide
goods and services
they can do it in puerto rico you know on a much favorable uh basis relative to
anywhere in the
continental united states so this is a recent thing for you how long you've
been down there for
well i moved my asset management company so i have a company called europe pacific
asset
management and i moved that company from southern california i was based in newport
beach with
that business and i moved it to san juan i think in 2013 and then i moved it to
dorado so i have my
office there and i moved all my portfolio managers they all moved uh from california
to puerto rico
that's got to be a tough sell you know they love it down there but was it
difficult to convince people
to pack up to which essentially another country it's not really but it kind of
is yeah it's america but
yeah technically it's not is it like guam like that kind of a situation yeah
well it's the same status
but i've never been to guam but i mean you do feel it does feel a little bit
like a foreign country when
because english is the second language everybody is speaking spanish so in a
way you know but all you
look around it's all the same restaurants it's all the same stores so it's
american in a in like chain
stores is that what you mean yeah all the malls you know all the same malls and
you know so there's a
lot of ex not really expats because they're actually still in america yeah you
do not renounce
your citizenship when you move to puerto rico you do not have to pay an exit
tax you still travel on
on an on a u.s passport everybody that lives there is an american so it's like
a sweeter deal than
moving to hawaii well hawaii you you got high taxes you're still paying federal
income taxes but
you're in paradise yeah plus you're paying the state income taxes in hawaii so
but you know
my guys wanted to move there because it basically almost meant that their
income was going to double
like pretty much overnight because they can participate in these tax breaks but
you know my
one of my guys is married has some kids and you know they really like it my
single employees have a
few young guys you know you know good shape working out you know young
portfolio managers but they've
you know they quickly got puerto rican girlfriends you know if you've got a job
down there that's a big
plus because most of the puerto rican guys and i don't know if you know this
but i think five of
the miss universes have gone to puerto rico i mean it's a small little island
country but they got
some beautiful women down there in puerto rico it sounds like you're a salesperson
from puerto rico
you know i should i've sent so many people down there a lot of people have
moved there because
of me i run into people all the time they see me on the beach at the pool help
you know you're the
reason that i'm here because they they heard about it but but look it's it's a
good deal and you know i i
would love to see puerto rico succeed as a mecca of free market capitalism
right now you know it's
a poster child for the failures of socialism because they it's the socialists
that killed puerto rico
just like they're killing a lot of major cities in the united states but if we
get more entrepreneurs
more business people coming to puerto rico you know that is what puerto rico
needs they don't need
to be a state they don't need the irs they don't need more government they need
the opposite of that
so you learn in spanish or are you just sort of sticking around americans well
i mean they're
all americans all americans but i mean i speak english i mean i i took high
school spanish so you
know if i go through a drive-through you know i got to try to use my spanish
because a lot of times
they don't speak but um and no one if you talk to someone from the police or
the fun fire department
none of those guys speak any english but most of the younger people they've
learned english and
where i live it's everybody speaks english i mean nobody addresses me once i
get out
of you know the the gates of the rich you know rich carlton you know i go out
and you know into a
movie theater they're you know they're speaking spanish and if i say do you
speak english then
they'll talk but where i live everybody addresses everybody in english so in
that respect you know
you're still there so you live in like a gated area that's a part of the rich
carlton yeah it's a
gated community but it's very large you know we have a lot of golf courses i
think three four golf
courses were on the beach and there's you know a lot of different places to
live is there any resentment
from the locals not that i can feel i mean because i mean i know some of the
locals could feel hey these
guys are coming in here they're not pay