I will briefly address that. I will differ from Mr. Davies on the flat tax. I think it involves a large compromise in vertical equity. Most studies of the flat tax find that, yes, it would be a large tax relief for the very high income, it could be designed to avoid any tax increase on the very low income, but it would be a shift of tax burden onto a fairly broad range of middle income. In my values, I don't particularly think that's good. Politicians would have to make their own judgments.
Yes, many of the other kinds of proposals both of us have made today do have equity dimensions, both horizontal—that is, across people with the same ability to pay tax—and across income classes.
This will be my last bit on it. For example, my recommendation that we revert to deductibility for employee contributions for the social insurance plans and for medical expenses would be less progressive than the system now, but would try to restore an appropriate measure of horizontal equity—in other words, assessing people's relative ability to pay tax. Someone might have very high medical expenses, which are not part of their ordinary consumption; therefore they should not be part of their taxable base. They should be deductible.