Diario Libre executive editor Adriano Miguel Tejada comments on the fiscal reform in the newspaper’s editorial today, Wednesday 17 October.
“Basically two types of fiscal reforms can be made. One that contributes to re-launching the economy by way of more revenues for a more rational state, and at the same time promotes private investment and facilitates actions by economic agents.
The other is simply an increase in taxation even if everything else is affected, including democratic governance. With the latter, the government would continue walking like the famous man [a reference to the Johnny Walker slogan “keep on walking”], recession is created, jobs are squelched and the possibility of increased economic development of the nation.
With his proposal, President Medina’s government seems to have chosen this last road and is stabbing itself dead with a knife, “like Chacumbele.” [Tejada is referring to the famous Cuban story/song whereby womanizer Chacumbele was followed through the streets of Havana by a madly-in-love-woman who found him with his new lover, and proceeded to carve him up with a knife. The phrase entered Cuban mythology and refers to when a person meets death by his own foolish actions.]
For example: President Medina has spoken about increasing the number of tourists to 10 million. Will the tourists want to come to a more expensive country, with an estranged social climate and growing poverty?
While it is true that incentives will be maintained for the tourism sector, nobody will be able to avoid the increase in costs that the reform will bring. If next year tourism season is sold, who will absorb these? Do not be surprised if the hotel chains start leaving the country.
And we could review almost all the segments of economic activity and see that none will be favored by the reform. Then, is there sense in considering a reform that creates only losers? We still have time to think this over.
http://www.diariolibre.com/opinion/2012/10/17/i356041_cual-reformaa.html