Madam, - If John McManus has correctly forecast future arrangements to encourage saving for pensions (Business, January 14th), people paying income tax at 42 per cent will receive a subsidy of €1 for every €1 they save, while those taxed at only 20 per cent will have to save €4 in order to get that subsidy.
Such a scheme would be illogical and regressive. People on low incomes find it harder to put money aside, and therefore need a stronger incentive than those affluent enough to be on the higher tax rate. Moreover, would it not cost the Exchequer less, and do more to reduce pressure on the State pensions system, if the one-for-one incentive went to modest savers? - Yours, etc,
MICHAEL DRURY, Avenue Louise, Brussels.