The Conservatives should go for flat tax

David Walker (Analysis, September 5) illustrates the weakness of debate on flat tax. Most support seems to be ideological and sadly innumerate. Support from right of centre is based on presumed economic efficiency: that FT will increase tax take - after Laffer's celebrated curve - and accelerate growth, via incentives from a reduced tax rate. As policies to increase tax take seldom emanate from the right, those on the left of centre are convinced the objective of FT advocates is to cut the tax take, and therefore government spending on all the "essentials" - health, education and welfare.

In the event, the decision will be made by the political perception of the redistribution of the tax burden were FT introduced. This demands a transparent estimation of the percentage of tax paid by each income decile, before and after a shift to FT. If FT and the current tax regime are compared at the existing tax take, total tax and spending is taken out of the debate, allowing assessment of the distribution of tax burden on rich and poor. National insurance, corporate and inheritance tax must also be treated transparently. However, anti-growth and welfare preferences are entrenched in Britain and too many enjoy tax benefits they think others pay for. Conservatives should adopt the flat tax as a test of attitudes to tax at the next election in absence of other distinctive policies.
Dr Alister McFarquhar
Cambridge

The perception of tax as having your money taken, rather than it being your contribution to your country, needs to change. Until it does, many of those less well off will still feel that withholding undeclared cash-in-hand income from the taxman is their chance to improve their lives. Meanwhile, many of the better off, especially large companies, will use tax havens or other tax dodges to prevent money going to the state. The use of tax havens, transfer pricing and bonuses in different currencies doesn't show a desire for low taxation, but a desire for no taxation. Taxation can't be simple if we use tax credits to safeguard those worse off. But it would be a lot simpler if the Treasury didn't have to come up with ways to legislate against tax dodges.
Nick Hipkin
Twickenham, Middx

David Walker condemns flat-rate tax after allowances on the grounds that it would leave the government short of £50bn in revenue, but after he has chosen an allowance and rates (ie those of the Adam Smith Institute) suitable for proving his condemnation. Why not choose allowances that are appropriate and equitable, followed by a flat-rate percentage sufficient to secure adequate national income?
John Bowler
Cheltenham, Glos