§ Mr. CallaghanNow I wish to unfold to the Committee something about my plans in the field of tax reform. I aim to stimulate a lively and radical interest in this subject. Our system has become unjust both in its incidence between different individuals and social classes, and in some ways it has become a stumbling block to economic progress. Nor am I satisfied that its use is sufficiently closely related to the physical and planning aspects of our policies. For example, I propose to examine how far variations of taxes can mobilise the profit motive to do the work of planning. My predecessor made a beginning when he adopted the proposals that my right hon. Friends and I put forward for giving certain selective tax concessions for investment in development areas. I wish to pursue the question how much further fiscal means can be used to create the framework of a dynamic economy.
In addition, I shall be looking especially closely during the coming months at the whole question of avoidance of tax. We all know that the greater the success of the ingenious tax avoider in this respect, the greater the marginal burden on the rest of us and the greater the injustice between classes of taxpayers.