Charge and Basic Rate of Income Tax for I988–89

Part of Orders of the Day — Finance (No. 2) Bill – in the House of Commons at 6:30 pm on 3rd May 1988.

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Photo of Mr John Smith Mr John Smith , Monklands East 6:30 pm, 3rd May 1988

As the hon. Gentleman has invited me to contribute, I shall do so. Only a fool would believe the propaganda that if the rate of taxation is reduced the amount of revenue is increased. If the hon. Gentleman looks at the Red Book, he will find that the cost of the reduction in the higher rates is calculated at over £2 billion. If there is anything in his argument, why does he not also argue that the rate should come down from 40 per cent. to 35 per cent.? Presumably, even more money would come in then.