Cuba More Business Friendly Than The United States?
Who would have thought two years ago the communist Cuban leadership would become private sector small business friendly while the democrat led government of the United States would line up American private sector businesses in the cross-hairs and put down suppressing fire? (For those not fans of war movies and Army lingo, "suppressing fire" is when offensive rounds are fired continually so that the "target" has to hunker-down for protection and come off the offensive, and even the defensive, so as not to expose itself. While suppressing fire is being commenced a flanking is done on the target and it is 'killed/destroyed'.) Sound about right?
I look at Cuba as a long lab experiment on America's front porch. For well over 50 years we have seen what 'nationalizing' everything within a country's economy does to said economy. We have seen what the warped concept of "spread the wealth around" means (means you'll get next to nothing ... and like it!) It doesn't bring the lower classes up. It drags everyone down. And once down the government grip over every aspect of the businesses, industries, and workers lives prohibits growth, incentive, and the much heralded "middle class" is extinct. The "middle class" is "the engine that could" of a successful society at every level. Yeah, when I hear Obama and the rest of the elected class in this country continually use the words "middle class" as their reasoning and justification for doing what they have, and what they are planning to do, I have to ask, "At some point will you be lowering the figures as to exactly what IS the middle class? Will you be re-defining that term, 'middle class'?" Because the way things are heading in this country the middle class will be lost like so much crucial data on a crashed computer. POOF! All that will remain will be the flooded "lower class" ... that, and the upper ranks of the smug political and entertainment class. You know, those guys that always praise the Castros and Cuba for their success.
It may have taken just over 50 years for the communist regime in Cuba to feel their belly grumbling, and decide to take a slight 'right turn' to loosen the chains on Cuba's people so that they can try to become productive on an individual basis. But within this news report you see the government, while appearing to make the attempt to turn toward a form of capitalism to save it's economy the government remains just as selfish and in full control with additional taxes and strict regulations.
[...] The new tax system enables the self-employed to deduct up to 40 percent from income for the cost of supplies, compared to just 10 percent under the old one.
Formerly, small businesses simply paid a graduated income tax. Now they will also have to pay a 10 percent sales tax and 25 percent social security tax, but both are deductible at the end of the year.
Castro's reform permits the self-employed, for the first time, to hire workers. They will have to pay a 25 percent social security tax for each employee, which will also be deductible, and an undefined labor tax.
ENFORCING SOCIALIST PHILOSOPHY
The Granma story made clear that despite the development of a larger private sector, the government's socialist philosophy remains in place and the labor tax is a way of enforcing it.
"This tax is regulatory in character to avoid concentrations of wealth and indiscriminate use of labor," Granma said.
"The more labor hired the more severe the tax," it said, without providing details.
The Granma story warned that those who are illegally self-employed must obtain a license and said tax scofflaws would face legal action.
"Those who continue working on their own without papers, or do not pay the required taxes, will feel the weight of the law imposed upon them by those mandated to enforce it, the National Tax Office," it said. [...]
The Castros are just putting would be private business in a choker collar. Another thing it's no longer singing the praises of is the government 'creating jobs'. In 50 years that failed miserably ... especially since Castro will be cutting roughly half a million government jobs. But that's okay. The American "progressives" (that's anglo-translation for "commies" ... okay, George?) in the USA are still firm believers in the, "Communism fails because we haven't done it yet ... and we know how to keep throwing more and more money into that fire."
Perhaps the people in Cuba ... the real 'experienced' people in Cuba, can teach Americans how to live with far far less money, food, medicine, comfort and freedom while waiting for the rice cookers to be handed out by the government ... Yeah, it's going to be THAT bad, and worse.
With all due respect and love to my adopted Babalu Family, I don't want to be Cuba ... not this Cuba.
One of the greatest tragedies of life is the murder of a beautiful theory by a gang of brutal facts. --- Benjamin Franklin