§ Mr. Ron Thomasasked the Chancellor of the Exchequer what evidence he has that a shift from direct to indirect taxation will improve incentives.
§ Mr. Robert SheldonIt is difficult to point to firm quantitative evidence showing that high rates of direct taxation lead to a reduction in work effort. Such quantitative evidence as does exist is based largely on the results of surveys relating to the experience of specific occupations, narrowly-defined income groups and individual companies.