Welfare and Taxes

Extending Benefits and Taxes to Puerto Rico, Virgin Islands, Guam, and American Samoa Gao ID: HRD-87-60 September 15, 1987

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.

GAO found that: (1) federal costs would increase due to higher benefits, more recipients, and greater cost-sharing; (2) area SSI and Medicaid costs would decrease because of changing program burdens and more restrictive eligibility criteria; (3) federal tax revenues would increase in the short term, but might decrease over time because of lost business tax incentives; (4) area corporate and income tax revenues would decrease; and (5) area officials generally supported extending most program benefits, but opposed extending federal income taxes.


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