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This would have the advantage of encouraging people to move off welfare and into work, but the overwhelming disadvantage of creating a very high marginal tax rate at the threshold where the tax credit tells away. Now the question is whether the risk of a collapse in world finan- cial confidence - and equities - might warrant some concerted easing of interest rates. Less predictable is whether people like Mrs Shoji are pre- pared to complain. He stressed eco- nomic management as the main issue.
