The Need to Keep the Tax on the U.S. Dollar

While Cubans rush in crowds to the stores opened in the capital to acquire various items, using magnetic cards backed by bank accounts in USD, among other currencies, the question or doubt remains on why the Cuban government keeps the decision to tax the US dollar a 10%.

To those doubts or questions Granma newspaper answered with a wide explanation in its front page.

It was necessary to apply this measure in response to the bans of operating with such currencies in foreign banks, measures that are intensifying today and cause significant damage and create serious risks for the normal exercise of international financial affairs.

Cuba's determination to face the pressures and blackmails of the US while defending its economic and social model, guarantee the path of development and well-being for the entire population.

The United States has declared a unique war on Cuba, -without light, medium or heavy caliber weapons - other kinds of weapons, but just as lethal, after all, in trying to suffocate and starve a country, through limitations of all kinds to have a country give in its sovereignty and independence.

It must be said aloud over and over again: the blockade is an act of war, and the defense to resist it, a legitimate right.

On that principle is based the sovereign decision through which, in 2004, the Cuban Government established a 10% tax on US dollars in cash that entered the national banking system, in response to the banning of operating with such currencies in foreign banks.

To explain the degree of validity of the measure taken in 2004 and the reason why this mechanism still protects commercial operations from additional risks, a synthesis of the questions and answers provided by the Central Bank of Cuba is offered here.

Which causes triggered the government measure to establish the tax on US dollars (usd) in cash?

The Government of the United States increased the pressures and threats to foreign banks to prevent Cuba from depositing USD abroad in cash. This money was acquired through the payments made by the population and foreign visitors paid in the establishments which, at that time, operated in foreign currency.

The Deposits of North American dollars in foreign banks are essential to meet any country's commercial obligations, because the imports of products are not paid in cash, but through bank operations.

When dollars are received in bills, in order to be used in international transactions, Cuba must send them abroad and have banks that want to receive them, which implies high risks and additional costs.

In response to such actions, in 2004 the Cuban Central Bank issued Resolution No. 80 of October 23, with the fundamental objective of discouraging the entry of USD in cash to the Cuban banking and financial system.

When taxing the bills that would enter the country, two objectives would be met: to compensate for the costs and risks associated with their physical transfer abroad after the escalation of the blockade, and to motivate economically those who wish to enter money into the country, to do it using banks or through the use of other currencies (foreign currencies).

Why are only US dollars taxed in cash?

To discourage the entry of cash only from this specific currency.

Are bank transfers in USD received from abroad subject to taxes?

They are not subject to tax because bank transfers are not associated with the aforementioned costs and risks for the physical manipulation of USD in cash.

Are international card transactions taxed?

The operations associated with magnetic cards are not taxed with 10%. In Cuba, Visa or MasterCard cards not issued by US banks are accepted.

Why is it necessary to keep the validity of the tax to USD in cash?

In recent years, the U.S. Government has intensified its economic war against the people of Cuba, dictating new measures that cause significant damage and create serious risks for the normal exercise of international financial activity.

Therefore, the tendency to refuse operations with Cuban banks is increasingly growing by foreign banking and financial institutions.

The Cuban Central Bank reiterates that the tax established for operations in US dollars in cash has been and continues to be a subject of evaluation and permanent attention of the banking system and authorities from the Cuban Government.

Trump Taxes Show $1.7 Billion In Losses Over Decade: Report

Washington: US President Donald Trump's taxes show that he lost $1.7 billion over a decade starting in the mid-1980s, The New York Times reported Tuesday.

Trump's apparent losses are greater than nearly any other individual American taxpayer, so much so that he managed to avoid paying income taxes for eight of the 10 years.

Trump's federal tax forms from 1985 show he reported $46.1 million in losses from his main businesses, which consisted mainly of casinos, hotels and retail spaces in apartment buildings.

Over the course of the next 10 years, they continued to lose money, with losses totaling $1.7 billion by 1994, the Times said.

The report comes the day after Treasury Secretary Steven Mnuchin denied Democratic lawmakers' request for Trump's tax returns, saying it "lacks a legitimate purpose," raised constitutional questions and threatened taxpayer privacy.

"I am informing you now that the Department may not lawfully fulfill the committee's request," Mnuchin said in a letter to House Ways and Means Committee Chairman Richard Neal.

Mnuchin's refusal after a month of deliberation appeared certain to spark yet another legal clash between the embattled president and congressional Democrats who now control the House of Representatives.

  • Published in World

Trump: The Triumph of an Eventual Failure

A protest against the tax reform plan outside the Capitol in Washington DC, U.S. capital.

Miami Diario a website informed this Monday that the U.S. Congress approved "the largest cut of taxes in history", after giving the green light to the long expected tax reform.

The reform fueled by the president was passed after a last minute modification, due to an “error procedure” before its approval by the Senate.

The result of the voting was 224 republican votes in favor and 201 democrats against.

This way Republicans finished the largest tax cut in decades, said observers.

In a brief speech after the final vote, Trump remembered that he had promised a great cut of taxes for Christmas, something supposedly now fulfilled.

Next he pointed out: "I’d like to thank the members of the Congress who supported this historical bill that represents an extraordinary win for the families, the workers and the American companies”, in answer to the first integral tax reform in the United States since 1986.

The leader added: "By reducing taxes and reform the broken system, now we are pouring rocket fuel into the engine of our economy. The United States has won again, and we are growing like never before", and he rejoiced in his first legislative victory since his arrival to the White House.

Donald Trump thanked all those who made possible the passing of his tax reform, among them the republican Paul Ryan and Mitch McConnell as well as Senator Susan Collins.

Paul Ryan, president of the House of Representatives in his speech eulogized the leader and he even qualified his leadership as "exquisite."

On the other hand, the leader of the Higher Chamber, Mitch McConnell praised the president and assured that “he has put an end to the excess of regulation of the American economy”.

What was approved reduces significantly the contributions to the tax office.

Among the most controversial aspects, the legislation also revokes the command of individual insurance required by the sanitary reform of the former President Barack Obama since 2019, and it allows the drilling in a part of the National Wild Life Refuge of the Arctic.

Trump who has been pressing the Republicans of the Congress for months to achieve his first victory in the Legislative after several failures that still echo in Washington, has fulfilled a great tributary reform before the end of the year.

To this end, nevertheless, among other machinations, the republicans have had to resort to an unorthodox legislative technique to get to pass a legal reform of such proportions, or block any kind of obstruction from the democrats in the Senate, where conservatives have a very tight majority.

The democrats have assured that this measure will "destroy the country" and they have warned the republicans that they will "regret" what they have passed.

Observers remember that among Trump’s catastrophic failures appear, his intention of eliminating the well-known sanitary program best known as (Obamacare), to block the entrance to the country to millions of Muslims, and the most recent Deferred Action for Childhood Arrivals (DACA), among others.

Based on polls, several sources remember that Trump’s administration is the less popular ever in the United States in the last decades.

  • Published in Specials
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