ABSTRACT

The level of incomes in state, socialised and co-operative enterprises should not vary greatly, to avoid social stress. In Hungary the higher incomes earned in co-operatives did cause friction. It seems reasonable to expect national wage negotiations and a national wage scale for the state and socialised sectors, but co-operatives of their nature must have greater freedom to make their own decisions in this respect. Excessive differentiation could be reduced by a progressive tax (on individuals or on enterprises). There could be rental, lease, or lump-sum payments designed to avoid differentiation due to natural advantages. This could apply particularly to land and minerals. For example, rent or tax levied on farms (whether state, co-operative, or individual) would be varied in accordance with a land valuation survey (cadaster), as indeed is now the case in several countries. The same could apply to shops favourably located in a central area. There would be much room for experiment. The problem, of course, would be to avoid discouraging efficiency and enterprise, as would certainly occur if taxes, leases, rents, were such as to penalise success. But this can hardly be said to be insuperable.