The smoke and mirrors of National Insurance added to income tax

SIR – If Philip Hammond, the Chancellor of the Exchequer, wants matters to be transparent he should review the “small print” of HM Government’s 30,000-page tax code.

How many taxpayers realise that (once employee’s and employer’s National Insurance contributions are taken into account) the basic tax rate of 20 per cent is the equivalent of 40 per cent and the higher rate of 40 per cent is in fact 49 per cent?

David Cameron claimed to have “taken millions of working people out of taxation altogether”, yet they are paying 12 per cent on earnings above £5,668 (the threshold for National Insurance) and the employer is paying a further 13.8 per cent.

We have had to wait a long time for a Conservative government, and some of us would like a radical one while the going is good. The Conservatives should reform this smoke-and-mirrors system, instead of offering us more of the same. Matthew Sands Horncastle, Lincolnshire

SIR – You kindly published a letter from me (January 14) on the “iniquitous tax” of stamp duty, which I said should be abolished.

I am astonished that the Yorkshire Building Society is advocating that stamp duty should be paid by property-sellers, to encourage more first-time buyers into the market.

This completely wrong strategy would result in fewer properties being offered for sale, and sellers jacking up the price to compensate for having to pay stamp duty. Ultimately, all buyers would end up paying more.

Stamp duty is the ugliest of all taxes. At the very least, the Chancellor should exempt all properties up to £300,000. This would instantly boost activity in the housing market. Anthony Fernau Bexhill-on-Sea, East Sussex

SIR – I trust there will be exceptions to the withdrawal of housing benefit from those under 21. With the increase in retirement age, jobs are becoming more difficult for school-leavers to find. Those from children’s homes or foster care have no families to live with or to help them with accommodation. Chris Barmby Tonbridge, Kent

SIR – The problem of funding longterm care could be alleviated if Mr Hammond were to allow tax relief on the cost of privately provided care. Huw Wynne-Griffith London W8

SIR – I was amazed that 40 people from the brewing and licensed trade should suggest (Letters, March 6) that the Chancellor should support brewers and pubs by reducing the price of a pint by a penny.

My club has just been told that the brewery has increased the price of a pint by 10p. If brewers are so intent on helping licensed businesses, a far greater effect would come from reducing their own price rises, rather than cut a penny off alcohol duty. Geoff Wright Bourne, Lincolnshire