Soviet Economy: When a Wink Becomes a Nod

When a Wink Becomes a Nod

The Soviet Union has long unofficially condoned elements of capitalism in its nominally all-Communist society. Craftsmen and professionals regularly moonlight to supplement their state-regulated salaries. The practice is called nalevo (working "to the left"). Last week the Supreme Soviet made much nalevo legal by passing a law that allows 29 types of private business, including carpentry and auto repair. One reason for the legislation is that it enables the state to collect added revenues. Practitioners of nalevo must now + register with their local governments and annually relinquish up to 13% of their earnings as income tax.


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