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