Case for tax cut

Press, Volume CXV, Issue 33806, 1 April 1975, Page 14

Case for tax cut

Sir.—Would Mr Tizard \ please explain exactly what 'he means in the report in. i “The Press” on March 3 j ■ when he says that those who were already on the maxi-' ■ mum tax rate were not pay-1 ing any more than they had ' been previously? Would Mr Tizard also indicate whether' he considers that the maxi-' I mum tax rates should be increased? —Yours, etc., 50c IN THE DOLLAR. March 4. 1975. fThe Minister of Finance (Mr Tizard) replies: “In the context of my statement I was referring to the effect of the graduated scale of income tax. As a person’s income increases the rate of tax on that income also increases. However, once having reached the maximum rate of tax any additional amount of income received by a taxpayer continues to be taxed at the same rate. As I have already indicated, the whole tax structure is at present being given close study’. It would, therefore, not be appropriate at this stage for me to comment on whether or not, the present maximum rate of tax should be altered.: I can say, however, that anychange would need to be considered in the context of a i Budget.”] [This footnote was| inadvertently printed' yesterday after a letter, on tax cuts from another correspondent.—Editor]