ABSTRACT
Cubans believe that socioeconomic equity was one of the most important accomplishments of the Revolution. The socioeconomic disparities in Cuba, overall macroeconomic reforms must be implemented to increase GDP, output of goods, employment, real wages, government revenue, and satisfaction of basic needs, and to reduce poverty and improve the quality of social services. This chapter discusses the crisis of the Cuba regime's legitimacy partly results from the violation of the principle of equity, which has led to the significant inequalities. It discusses the tax policy, recommendations for changes in social services, coping with racial disparities, introducing a social safety net, and the need for foreign aid. The proper approach would be to reform the tax system completely in order to provide resources needed for market reforms, including the implementation of a social safety net and other social changes. The tax policies transform the free provision of social services and subsidies to rationed goods by taking income into account.
