Sir: A number of factors contributing to inequality are staring us in the face, the most obvious being the shift from direct to indirect taxation. In 1978 there was protest when VAT was raised from 5 per cent to 7.5 per cent. There was outrage when it was raised to 15 per cent in 1979. By the time it was raised to 17.5 per cent to get the Chancellor out of a mess, there was resignation. This is a tax which hits rich and poor alike. It is inequitable that it should remain at this level.
Yet we have a government which has set its face against raising income tax.