THECUBAREVIEW 13 



Report of the American Chamber of Com- 

 merce of Cuba on the Proposed Tax Bill 



Havana, July 3, 1922. 

 To the House oj Representatives : 



The American Chamber of Commerce respectfully asks the consideration of the 

 hereinafter stated protests to the taxation proposed in the new tax Bill accepted in the 

 House of Representatives, June 5th, 1922, which we understand to be as per Exhibit A 

 attached hereto. 



We understand many amendments have been or will be presented to this proposed 

 Bill, copies of which amendments this Chamber has not yet received and accordingly 

 is unable to give consideration of same in this protest. This Chamber respectfully 

 asks that it be furnished copies of all proposed amendments and be given opportunity 

 to study them to ascertain the effect on its interests and to accordingly advise your 

 honorable body before the adoption of any or all of the said amendments. 



The protests herein stated are made after having given due and careful study 

 to the effects of the proposed taxation upon industries, companies, firms and individuals 

 carrying on commercial business in Cuba, and it is the belief of the Chamber of Com- 

 merce that it is for the welfare and prosperity of the Republic of Cuba that said protest 

 be recognized in total, and the final bill adopted by the House of Representatives 

 accordingly changed to conform therewith. 



The understanding which this Chamber obtained from the personal explanation of 

 the operation of a "1 per cent. Sales Tax" was that it would produce: 



1. More equitable and more uniformly distributed taxation and accordingly less 

 burdensome to each industry, corporation, company, firm and individual. 



2. A tax more easily collected by the Government. 



3. That it would provide, in addition to the revenue of import taxes, sufficient 

 funds for the proper operation of the Government and would permit the cancellation of: 



(a) 4 per cent, net earnings tax. 



(b) At least the greater part of the existing Timbre Stamp Tax, particularly those 

 parts of same applying to receipts, facturas, orders and other papers ordinarily encountered 

 in a commercial business and industry. 



4. That it would be a tax borne by the consumer and accordingly more equitably 

 distribute the burden of additional taxation. 



In analyzing the proposed new law, are found numerous other forms of taxation 

 not anticipated or expected, increases in rates of other forms of taxation expected 

 to have been repealed, all of which thrust extreme burden upon certain commercial 

 organizations and industries without application to others, taxation on certain classes 

 of commodities, without taxation upon others, thereby being selective, unfair and 

 unjust, and seriously affecting the financial stability of those required to pay same. 



This Chamber fully appreciates the necessity of taxation, and possibly additional 

 taxation to that now existing, and its members are prepared to bear their equitable part. 

 It believes, however, that before burdening with taxation in excess of that now existing 

 the industries and commerce of the Republic, all of which are now in depressed financial 

 condition, that the public be advised as follows: 



1. The definite purpose for which the revenue in excess of that required to provide 

 for the budget is to be used. 



2. The policy which is to be adopted for the payment of the floating debt of the 

 Government and whether same is to be amortized from the aforesaid excess revenue 

 from taxation, or through the issuance of bonds. 



In fairness to the industries and commerce of Cuba, consideration must be given 

 to the fact that after two years of extreme business depression and reverses, during 

 which practically every corporation, company, firm and person engaged in commercial 



