This would be disastrous. We did not get into this position because taxes have been cut to especially low levels. On the contrary, although it is the Great Recession that largely explains our present plight, things have been made considerably worse because government spending rose excessively. It increased from 40pc of GDP in 2007-08 to almost 47pc in 2010-11. It still stands at about 45pc today. If we are to boost demand and encourage the supply-side of the economy, we must set about reducing marginal tax rates and boosting incentives. The idea that effective marginal tax rates are about to go up, for perhaps a million people, sends exactly the wrong message.