ABSTRACT

A tax on the financial sector to be used exclusively to finance the NPV scheme represents then a transfer of social resources from more speculative activities to the real activities of the less resourceful mass. The supply side of the scheme can be well nurtured and planned beforehand and the welfare reduction can be delayed until Economy II is in full force. In principle, a natural person company, like its legal person counterpart, should be subject to taxation. The rates of taxation, the types and amounts of concessions to be granted depend on the level of incentive a government considers appropriate. In the embryonic and formative stage, Economy II depends on the purchasing power injected by the government in the form of vouchers. One way to minimise planning risk is to issue only general purpose vouchers in the initial stage, taking into account broadly the labour endowment and the demand structure of that particular economy.