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Part of Prayers – in the House of Commons at 12:00 am on 16th June 1988.

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Photo of Mr Norman Lamont Mr Norman Lamont , Kingston upon Thames 12:00 am, 16th June 1988

The premise of the hon. Gentleman's question is wrong. Although the share of pre-tax gross incomes among the top 5 per cent. has increased two percentage points, their contribution to the Inland Revenue tax take has increased by four percentage points, so the hon. Gentleman is wrong. He seems to believe that there is something surprising about the fact that when one gives people incentives, their salaries increase. That is exactly what we expect and it is not in any way surprising. The hon. Gentleman may be interested to learn that 5 million taxpayers on less than half average earnings have enjoyed a 22 per cent. reduction in their tax burden as a result of the Budget.