Letter: Save or spend?

Sir: The rather sour comments of W J Hyde (letter, 22 August) seem to be based upon a misunderstanding. There may be a minimum amount of tax it is necessary to raise from individuals in total but never an absolute amount, so one person's "tax break" is not subsidised by another's increase.

Rather, taxation is affected by economic management factors, including incentives to save rather than spend. It is this that has created PEPs and Tessas; any investment made in them must come from income that has already been subject to income tax. There is no question of giving those that choose to save tax revenues taken from anyone else.

R J CROWE

London W3