Letter: Labour's tax plans: gainers and double standards

Sir: How can Stephen Dorrell refuse to accept that a 1 per cent increase in National Insurance contributions is not more regressive than a similar rise in the rate of income tax ('Dorrell says tax rise will be average of pounds 5.75 a week', 6 April)?

NI contributions are paid by people below the tax threshold, and, at the same time, do not apply to earnings in excess of pounds 420 a week. So anyone earning more than pounds 20,000 a year will find their extra deductions taking a smaller share of their income than someone below that level - a perfect illustration of a regressive effect.

Yours etc,

HARVEY R. COLE

Winchester

6 April