The real story on tax

YOU quote an economist from Goodbody (September 7) offering the usual argument that because the top 4% of earners pay close to 48% of all income tax we can expect lower paid workers to face tax hikes in the next budget.

This ignores VAT and all the fixed charges, ie so-called stealth taxes. Since VAT and stealth taxes are paid by people irrespective of income, they are a much bigger proportion of the income of the lower paid.

Before the case for increasing taxes on the lower paid is decided, the real marginal rate of all taxes should be established – not just the marginal rate of income tax.