With the investment income surcharge this raised the overall top rate on investment income to 98%, the highest permanent rate since the war. This applied to incomes over £20,000 (equivalent to £213,089 in 2020 terms),[3]. In 1974, as many as 750,000 people were liable to pay the top rate of income tax.[12] Margaret Thatcher, who favoured indirect taxation, reduced personal income tax rates during the 1980s.[13] In the first budget after her election victory in 1979, the top rate was reduced from 83% to 60% and the basic rate from 33% to 30%.[14] The basic rate was further cut in three subsequent budgets, to 29% in 1986 budget, 27% in 1987 and 25% in 1988.[15] The top rate of income tax was cut to 40% in the 1988 budget.