Residents of Puerto Rico
"Income you receive from Puerto Rican sources during your residence in
Puerto Rico is exempt from U.S. tax. This includes income for the
period of Puerto Rican residence in the year you change your residence
from Puerto Rico if you resided there at least 2 years before the
change. However, income you receive for services performed in Puerto
Rico as an employee of the United States is not exempt from U.S.
income tax." IRS
If California defaulted and ceased operating as a state of the union, what is its status? Where is the best place to default? In Congress? No, in state government. In one fell swoop a state can opt out of the USA by default. California would not be seceding, California would simple be unable to carry out Due Process and citizens would thus default to territorial status.
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