Caring for the poor
From Mr Tony Leach Sir: You say that the NHS is underfunded and that it should be further financed by insurance rather than higher taxation (Leading article, 22 January). If income tax, inheritance tax and capital gains tax were abolished, the 80 per cent who pay most of them could well afford to pay their own health and education costs, and insurance would be a good way to finance them. Those services could then be privatised, with improved standards.
Direct taxes now raise only a quarter of total revenue and, while in theory the rich help to pay for the poor, does this really happen? Only 30 per cent of social security spending goes to the poorest 20 per cent, so 70 per cent must go to the other 80 per cent. This was about £80 billion in 1997/98, which also happened to be the total of these three taxes.
Indirect taxation now provides enough to pay for defence, law and order, and the social services for those who need help. The state would pay their health and education costs. The many different schemes of state assistance could be dropped for one of assistance only to those who really need it, and they might then be better cared for.
Tony Leach
The Old Rectory, Ross-on-Wye, Herefordshire
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