ABSTRACT

The industrial arbitrator's problems are more nearly paralleled by those which face the Chancellor of the Exchequer, whenever he proposes to modify taxes. If he has a budget surplus to dispose of, for example, he can choose whether to allocate it according to need or desert. He may decide to give relief to the family man; or he may seek to increase incentives by reducing the higher rates of income tax, thus widening net differentials between higher and lower paid workers. Decisions of this sort are always highly controversial, precisely because different people stress different criteria, some giving priority to need, others to desert.