Wednesday, September 15, 2010

Memo to Raul Castro

As you begin to shift from a command-and-control to a market economy, I suggest you stay clear of the IMF, IDB, WB, and Harvard University for advice.  Instead, send your team of economists to Estonia and Slovakia whose officials will be happy to share with you their success in transforming their economies after the collapse of the Soviet Empire.

In particular, you should study the flat tax as a good way to install a new revenue system.  Even Russia, your former benefactor, has flourished due, in part, to its 13% flat tax on personal income.

Best wishes for success in your reform program.

Alvin Rabushka

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