Thursday, January 26, 2012

LibDems pushing for more tax cuts to help low-paid

Councillor Frank Little writes: There is a real push by Liberal Democrats in government, notably Business Minister Vince Cable and Deputy Prime Minister Nick Clegg, to move more quickly to take everybody earning £10,000 a year or less out of tax. It was a Liberal Democrat manifesto proposition in 2010 to do this, but the coalition agreement merely promised to achieve it by 2015. Now, however, there is a real chance that low- and middle-income taxpayers will benefit in the 2012 budget, and that the money will be found from the wealthiest - possibly from land, which cannot move abroad.

As this news release points out, Liberal Democrats in government have already:

  • clamped down on tax avoiders – targeting an extra £7bn every year
  • started taxing the banks by an extra £2.5bn every year, more than Labour's bank bonus levy would raise
  • stopped inheritance tax cuts for millionaires
  • put up Capital Gains Tax
  • reduced tax breaks on pension funds for the super-rich
  • retained the 50p rate

Raising the tax threshold immediately would pump millions into the economy because those on lower pay will spend the extra income. It's also fair

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