Excerpt by Simon Lester of The Cato Institute:
Welcoming new foreign investment is great. Here’s the problem, though: In order to liberalize investment, a government really doesn’t need to do anything fancy. It can just say, “foreign investment is permitted, and will be treated like domestic investment.” Very simple. Furthermore, lower tax rates and reduced regulatory burdens can help encourage such investment. Again, very simple.
In practice, though, governments make this process difficult and less liberalizing. Here, what Cuba seems to have done is offered special tax breaks for new foreign investments, and then subjected receipt of these tax advantages to certain hiring conditions. In effect, it introduces two distortions as part of the liberalization process: favoring new foreign investors over other investors through the tax code and then subjecting the favored investors to additional regulation.
- ► 2016 (694)
- ► 2015 (1080)
04/20 - 04/27
- "Cuban Twitter" Modeled After U.S. Programs in Afg...
- "30 Days for Freedom" Campaign: Release Cuban Jour...
- Quote of the Week: Elena Poniatowska on Fidel
- @NETmundial: Russia and Cuba Push for Internet Cen...
- Major Hurdles for Foreign Investors in Cuba
- Provocative, But True: Cuba's Modified-Nazi Wage P...
- Pentagon: Russian Spy Ship Operating Near Cuba
- Garcia Marquez: Gifted Writer, But No Hero
- Background: MLB's Requirements for Cuban Players G...
- FL Lawmakers to MLB: End Disparities for Cuban Pla...
- Raul's Distorted Reforms
- The FARC's (and Castro's) Favorite Congressman
- Recommended Reading for "Cuban Twitter" Critics: D...
- Quote of the Day: "Cuban Twitter" is a Good Thing
- Another Reason Why Cuba Remains a State-Sponsor of...
- Why Raul's Reforms Don't Work
- 41st Sunday in a Row: Ladies in White Beaten, Arre...
- Tweet of the Day: In Mariel, Castro Will Only Stea...
- WSJ: Three Easters in a Cuban Prison
- Confiscations Yesterday, Today and Tomorrow
- Dilma Hearts Dictators
- ▼ 04/20 - 04/27 (21)
- ► 2013 (1251)
- ► 2012 (1158)
- ► 2011 (1031)
- ► 2010 (1042)
- ► 2009 (933)