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Mr. Ron Thomas
asked the Chancellor of the Exchequer what evidence he has that a shift from direct to indirect taxation will improve incentives.
Mr. Robert Sheldon
It is difficult to point to firm quantitative evidence showing that high rates of direct taxation lead to a reduction in work effort. Such quantitative evidence as does exist is based largely on the results of surveys relating to the experience of specific occupations, narrowly-defined income groups and individual companies.