§ Mr. Deakinsasked the Chancellor of the Exchequer what has been the trend in the level of direct taxation on earned incomes since 1979; and if there is any correlation between this trend and changes in the economic performance of the United Kingdom.
§ Mr. MooreIncome tax has fallen as a proportion of earnings for the great majority of earners since 1979. Economic performance is affected by a number of factors and it is difficult to isolate the effect of one particular variable. However, a lower burden of income tax should, by improving incentives and thereby encouraging work, risk-taking, and enterprise contribute to improved economic performance.