OTHER TAX HAVENS IN THE UNITED STATES
          
               You should be aware that although the federal tax
          is the same everywhere, state income taxes vary
          considerably.  Some states, such as Nevada and Wyoming,
          have no income tax at all, and for certain types of
          businesses, you may be able to base in one of those tax
          havens.  State tax laws change frequently, and it is
          important to obtain current advice from a tax
          professional.
               Manufacturing businesses, and some service
          businesses, in Puerto Rico receive income tax
          exemptions for up to ten years, but are within the
          customs territory of the United States, so there is no
          duty on selling your goods on the mainland.  Traveling
          between Puerto Rico and the mainland is just like
          traveling between states.  Almost all of the world's
          largest pharmaceutical companies now have their
          factories for the American market in Puerto Rico. 
          Puerto Rico is the only place in the United States that
          is exempt from federal income taxes -- it is not part
          of the U.S. for income tax purposes.  Information on
          the use of Puerto Rico, and other tax havens around the
          world, is contained in The Tax Haven Report, available
          from Scope International Ltd., 62 Murray Road,
          Waterlooville, Hants., PO8 9JL, Great Britain.  The
          price is $125, including airmail postage, ($100 by
          surface mail) or request their free catalog for more
          information.  They accept Visa & MasterCard.
               Puerto Rico income tax law also exempts dividends
          and capital gains from the shares of companies that
          have been granted a tax holiday.  A U.S. citizen who
          resides for the entire calendar year in Puerto Rico
          does not pay federal income tax, but normally pays
          Puerto Rican income tax on his worldwide income.  But
          since the dividends and capital gains from these tax
          holiday companies are exempt because of the Puerto
          Rican tax incentive laws to attract business, you can
          accumulate your profits, and then spend a year in
          Puerto Rico.  During that year you pay out a huge
          dividend or sell the company.  The money will not be
          subject to either Puerto Rican or federal income taxes. 
          But be sure you have established your legal residence
          in Puerto Rico -- well documented with a lease or house
          purchase -- by December 31st of the preceding year and
          maintain it until at least January 2nd of the following
          year.