Cuban minister faces backlash for saying there are no beggars in Cuba
Cuba's Minister of Labor and Social Security, Marta Elena Feitó Cabrera, made the comments on Monday before deputies in a National Assembly committee. They went viral, prompting calls for Feitós' impeachment and a wave of criticism in a country experiencing a tough economic situation in recent years.
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Yahoo
5 hours ago
- Yahoo
Cuban private sector overtakes state in retail sales value amid economic crisis
HAVANA (Reuters) -Cuba's private sector accounted for most of the value of retail sales for the first time last year, new government data shows, a milestone for entrepreneurs in an economy otherwise grappling with a severe, years-long crisis. Preliminary figures from the National Statistics Office indicate the "non-state" sector was responsible for 55% of retail sales of goods and services in 2024, up from 44% in 2023. These figures exclude public utilities. The growth comes as Cuba's state-run economy has contracted by 11% over the last five years, marked by frequent blackouts, goods shortages, and high inflation. The trend is visible at bustling informal markets such as the 100th Street Bridge Fair in Havana, where hundreds of vendors sell items often unavailable in state stores, from hardware to food and clothing. 'There are many things that you cannot find in the state sector,' said Diamela Garcia, a clothing vendor at the fair. 'Many people come to look for these things here." María Karla Hernández, a 27-year-old physiotherapist in green scrubs shopping for work supplies, said shoppers acknowledge the greater availability of goods in the private sector but also the higher costs. 'Here you find everything, although the prices are high," she said. Cuban economist Omar Everleny cautioned the retail data reflects sales value, not volume. "Prices are often subsidized in the state sector and much higher in the private sector,' he said. "In addition, the state has little cash to import goods ... so people have to turn to the private sector, which is more flexible." The government has gradually expanded the role of private enterprise since the 1991 collapse of its former benefactor, the Soviet Union, reversing a 1968 policy that nationalized all private businesses. According to official figures, approximately 1.6 million people in a labor force of 4 million work in the private sector. Economy Minister Joaquin Alonso told the National Assembly this month that while the country's overall imports have declined, imports by private businesses topped $1 billion, a 34% increase compared to the same period last year. Sign in to access your portfolio
Newsweek
5 hours ago
- Newsweek
Donald Trump Accused of 'Exaggerated Claims' Over Social Security
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. The Trump administration has "been peddling false and exaggerated claims" about taxation on Social Security benefits, according to a think tank in Washington, D.C. Newsweek has contacted the White House for comment via email outside regular working hours. Why It Matters Earlier this month, President Donald Trump signed the One Big Beautiful Bill Act into law. The legislation creates a new expanded standard deduction for taxpayers aged 65 and up, and it follows Trump's long-standing promise to nix federal taxes levied on Social Security income. Trump, the White House and the Social Security Administration (SSA) have promoted the expanded deduction as eliminating taxes on Social Security benefits for almost all seniors. In a June appearance on Fox News' Sunday Morning Futures, Trump said the bill meant "no tax on tips, no tax on Social Security, no tax on overtime." However, experts have said the legislation's touted benefits for seniors are overstated and may hasten the insolvency of Social Security and Medicare trust funds. President Donald Trump speaks with the media at Trump Turnberry golf club in Scotland on July 28. President Donald Trump speaks with the media at Trump Turnberry golf club in Scotland on July 28. Christopher Furlong/GETTY What To Know The One Big Beautiful Bill Act raises the standard deduction for seniors aged 65 and older by up to $6,000 between 2025 and 2028. While it does not directly alter how Social Security benefits are taxed, it could indirectly reduce the amount of those benefits subject to federal taxation. According to the Center on Budget and Policy Priorities (CBPP), almost half of seniors already didn't owe taxes on their Social Security benefits under previous law. "Since the substantial majority of low- and middle-income seniors didn't pay income taxes, the new deduction will provide no benefit to these households—doing nothing to help them afford their health care, housing, and other critical living expenses," the think tank wrote in a report published on Monday. Though the deduction begins to phase out for individuals with incomes over $75,000 and for married couples earning more than $150,000, the Tax Policy Center found that seniors with incomes between $80,000 and $270,000—representing a quarter of people over 65—receive almost two-thirds of the deduction's benefits. While higher-income seniors are the primary beneficiaries of the tax break, most won't see a complete elimination of taxes on Social Security income under the new law, according to the CBPP. "For the vast majority of these higher-income taxpayers, the tax on their Social Security benefits would be reduced but not eliminated," the think tank reported. The deduction also excludes beneficiaries under age 65. Social Security beneficiaries can begin collecting at 62, while those collecting survivor benefits can claim even earlier. Both the SSA and the White House have touted the benefits of the legislation. Citing analysis from the Council of Economic Advisers, the White House said 88 percent of all seniors who received Social Security would pay "NO TAX on their Social Security benefits," adding that the Senate proposal's $6,000 senior deduction was "estimated to benefit 33.9 million seniors, including seniors not claiming Social Security." Prior to the bill being signed by the president, the SSA sent an email celebrating the legislation's passage through Congress. The email said 90 percent of Social Security beneficiaries would "no longer pay federal income taxes on their benefits" and that the bill would provide "meaningful and immediate relief to seniors who have spent a lifetime contributing to our nation's economy." The CBPP report also warned that the new law could worsen the financial outlook of Social Security and Medicare. The think tank said the tax cuts would reduce the revenue generated from Social Security benefit taxation by about $30 billion annually, accelerating insolvency of both trust funds to 2032—a year earlier than previously projected. According to the latest Social Security Trustees report, the program's two trust funds—the Old-Age and Survivors Insurance and Disability Insurance funds—when combined are projected to reach insolvency by 2034. At that point, benefits would rely entirely on incoming payroll taxes, resulting in an automatic cut of about 21 percent unless Congress intervened. What People Are Saying The Center on Budget and Policy Priorities: "The Trump Administration has been peddling false and exaggerated claims about the harmful Republican megabill's effects on the taxation of Social Security benefits, including in a blast email from the Social Security Administration. The new law doesn't help most low- and middle-income seniors, and it depletes the Social Security trust funds faster. Moreover, the Administration's misleading claims shouldn't distract from how the law's deep cuts to health care and food assistance will leave millions of seniors with low incomes worse off." The White House said in news release on July 21: "The largest tax cut in history for working- and middle-class Americans—including No Tax on Tips, No Tax on Overtime, and No Tax on Social Security—is now the law of the land, along with unprecedented tax relief for small businesses, farmers, workers, and families." What Happens Next The expanded deduction for seniors is set to take effect beginning with the 2025 tax year and expire after 2028 unless extended by future legislation.
Yahoo
6 hours ago
- Yahoo
Two-income retired couples may lose $18,100 annually in Social Security in 2033
A dual-earning couple retiring at the start of 2033 can expect an average $18,100 lower annual Social Security benefit than if they retired now, according to a new analysis from the Committee for a Responsible Federal Budget. The 24% drop is expected to come just after Social Security's Old-Age and Survivors Insurance (OASI) Trust Fund is depleted. OASI holds money collected from payroll taxes to help fund Social Security. That fund is expected to be depleted by late 2032 as the number of retired people outpaces the number of workers. Once OASI's depleted, Social Security benefits will no longer be paid at the full rate. Instead, benefits will be cut, only payable by the amount of money coming in. Even worse, "the cuts would grow over time as scheduled benefits continue to outpace dedicated revenues," the nonprofit CRFB said in its analysis. By 2099, the size of the required benefit cut would grow to well over 30%, it said. Here's how cuts could affect Americans The $18,100 annual cut is an average for a two-income couple. Depending on a couple's age, marital status, and work history, the actual size of the benefit cut would vary. Here are some examples of how Americans could be affected, in nominal or non-inflation adjusted terms, CRFB said: A typical single-earner couple would face a $13,600 cut, while a dual-earner low-income couple would face an $11,000 annual cut. High-income couples could see a cut of closer to $24,000. Although the absolute size of the cut would be smaller for a typical low-income couple than for a high-income couple, it would represent a larger share of their income and their past earnings. How many Americans could be affected? In June, nearly 67 million Americans received Social Security, according to the Social Security Administration. Social Security is deemed important by 96% of Americans in 2025, with little difference among age groups and political party affiliation, an AARP survey of 3,599 adults ages 18 and older taken last month showed. AARP is a nonprofit advocating for older Americans. Nearly two in three retired Americans say they rely substantially on Social Security, while another 21% say they rely on it somewhat, AARP said. CRFB vs Social Security and Medicare Trustees The CRFB's estimates of a 24% cut in seven years is more dire than the 23% drop in eight years provided by the Social Security and Medicare Trustees report in June. That's because CRFB accounts for the impact from the One Big Beautiful Bill Act (OBBA) signed into law over the Fourth of July, the think tank said. "The tax rate cuts and increase in the senior standard deduction from the recently enacted OBBBA would reduce Social Security's revenue from the income taxation of benefits, increasing the required cut by about a percentage point upon insolvency," CRFB said. "If the expanded senior standard deduction and other temporary measures of OBBBA are made permanent, the benefit cut would grow larger." The OBBBA's $6,000 extra senior deduction is slated for 2025 through 2028. What can government do to keep 100% benefits flowing? Congress will have to increase revenue coming into the program by possibly raising payroll taxes, reducing overall spending on benefits maybe by raising the full retirement age, or some combination of the two, AARP suggested. Also, eliminating the maximum income that's taxable for payroll tax and reducing the benefits paid on higher earnings are also among steps Congress could take to save money, the CRFB said. Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at mjlee@ and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday. This article originally appeared on USA TODAY: Social Security checks in 2033 may be 24% smaller Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
