More on Reuters absurd view of new taxes in Cuba

Radio Talk Show host Kevin McCollough has posted the following on his Facebook page:

Oddly 100% taxation failing… #fb

The pseudo-commies that penned this article have the most twisted description of “free” I’ve ever seen in print.

All through the piece you read how the new taxes that Cuba is about to implement on their people will move them toward a free market model.

They quote people saying, “we’re not used to paying for anything…”

All through the first half of the piece I’m saying to myself, “How did they fund things up till now?” And then there it is – stuck right there about 3/4ths of the way through:

“Under the old system, large and small state-run companies, which accounted for more than 90 percent of economic activity, simply handed over all their revenues to the government, which then allocated resources to them.”

So when the state controlled industry, businesses endured a 100% tax rate, and the nation never rose to prosperity, never saw an increase in take home pay, never really ever saw a modern way of life take hold.

Having run out of money, the government is now releasing those holding and the 100% tax rates:

“The reforms call for large state-run businesses to be moved out of the ministries and become more autonomous.

Under the new tax system they will pay a 35 percent tax on their profits, but can take advantage of a myriad of deductions ranging from amortization and travel to sales taxes, insurance and environmental protection.

Many smaller businesses will become cooperatives or be privately leased and taxed based on income.”

Again the writer of the piece seems to be reacting to all of this as some sort of new oppression that will strap the Cuban people with greater burdens.

But reducing business tax rates from 100% to 35% alone, should propel the Cuban economy into its largest private economic expansion in its history…



Parting question… why is our government attempting to exactly the opposite?

Of course McCollough’s mistake is to assume that castro, inc. is actually going to privatize the large swaths of the economy that Reuters says it’s going to. Having watched Cuba this long I can tell you that nothing the Cuban state says it’s going to do actually happens.

1 thought on “More on Reuters absurd view of new taxes in Cuba”

  1. Once, a long time ago, Cuba and the US were nearly equal in all aspects, now it seems that things are about to go full circle, and we will be back to nearly equal again.

    Cuba has a Socialist public education system, and we have a Socialist public education system.

    Cuba has mediocre to horrendous socialized medicine, and we have just embarked on a journey to horrendous and mediocre socialized medicine.

    Cuba has government-controlled media, we have media that works as an extension of the government.

    Cuba has shitty credit, we’re getting there.

    Now Cubans have to pay income taxes in return for crappy government services, and we have been doing the same for decades.

    We have spent fifty years waiting for Cuba to rise back to its former place alongside the US in our hemisphere, and failed to notice that in fact the US has quietly lowered itself to Cuba’s level in a few short decades.

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