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Lib Dems will cut people's income tax bill by £700
April 21, 2009 9:30 AM
Originally published by Wantage and Didcot Liberal Democrats
Originally published by Wantage and Didcot Liberal Democrats
Thousands of people in Oxford West and Abingdon would be taken out of income tax altogether under new tax proposals launched by the Liberal Democrats. And thousands more would see their income tax bill slashed by £700 a year. The plans, launched by Party Leader Nick Clegg yesterday, would boost family budgets battered by rising food, power and transport prices. The personal tax allowance would be raised to £10,000
Lib Dem Finance spokesman on the County Council, Alan Armitage, said: "Thousands of families on low income in this area will benefit from this tax cut. They will be lifted out of income tax altogether. People earning over £10,000 will pay £700 less income tax a year, paid for by ending the loopholes and tax avoidance schemes used by the wealthy and big corporations.
"Ordinary people are struggling because of the recession. Now is the time to make a far reaching and permanent change to the tax system that benefits those on low and middle incomes. Liberal Democrats want to see more money left in the pockets of ordinary people rather than having it taken away by the Government. Here in Wantage and Didcot, Liberal Democrats will be going into the general election committed to a lasting income tax cut."
The Leader of the Liberal Democrats, Nick Clegg MP, said: "These plans will give money back to the people who really need it at the time when they need it most. It is time to end the unfairness that sees big businesses and the wealthy treating taxes as something to be easily avoided, leaving everybody else to pay out. For too long governments have been letting companies stash their money in offshore tax havens while taxpayers are left to foot the bill. Over time a tax system has developed that creates loopholes for the wealthy and does nothing for those who really need help."
Nick added: "People who say there isn't enough money to make our tax system fair are wrong. Our plans wouldn't add a penny to the overall tax burden, but they would spread that burden far more fairly. Far from making this reform difficult, tight Government finances and a harsh recession make it absolutely vital. It will help millions of low and middle income taxpayers who are most likely to spend money so helping the wider economy. The Liberal Democrats will create a fundamentally rebalanced system that is fair for all, putting hundreds of pounds back into the pockets of millions of British people, and taking four million out of paying tax altogether."
Notes
Raising the personal allowance to £10,000 for all people will mean that those on the standard personal allowance will see an increase in their allowance of £3,525 in 2009/10; this will give an effective tax cut of £705 to anyone earning over £10,000 .
Raising the personal allowance will take approximately four million people out income tax altogether.
Measures which will be used to pay for this proposed increase in the personal allowance include:
· Restricting tax relief on pension contributions to the basic rate
· Taxing Capital Gains at marginal income tax rates, allowing for indexation and retirement relief
· Tackling Stamp Duty Land Tax avoidance and Corporation Tax avoidance
· Subjecting benefits in kind to National Insurance Contributions as well as income tax and applying National Insurance to multiple jobs
· Switching aviation taxes from per person to per plane and increasing taxation on non lifeline domestic flights.
Read more at http://www.libdems.org.uk
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