The Cuban economy is certainly suffering, so much so that Raúl Castro told citizens on Sunday to brace themselves for the tough times to get worse in the short-term, but the Cuban state is not letting such difficulties impede investment in one of its most highly-regarded assets—education.
Teachers and other educational professionals will receive raises of roughly $3-7 a month per worker (which is, for many, a 20% pay increase or more) beginning in the fall.
A small hitch: these workers will now pay a 5% social security tax on their wages, a change that will divert greater funds to creating a greater buffer for the aging population.
The new tax is an interesting policy, not only because taxes are so rare in the state-run Cuban economy, but because it seems to be mostly for show: teachers are paid by the state, and will now turn around and pay a bit in taxes back to the state. Global Post’s Nick Miroff suggests that it is a method for developing a more taxpayer-style mindset in Cubans, i.e. a sense that they contribute to the common good and the state does not (alone) provide everything.
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