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Liberal Democrats promise a tax cut you can believe in

April 12, 2010 7:10 PM
Fair Taxes

Only the Liberal Democrats are committed to a fair tax system

The Liberal Democrats today set out their proposal for the most radical change in taxation for generations.

The fairer tax policy will be at the heart of the party's manifesto for the General Election.

Under the Liberal Democrats the income tax threshold would be raised to £10,000, meaning most taxpayers would see their income tax bills cut by £700.

The move is paid for by clamping down on tax avoidance, closing tax loopholes for the wealthy, a 'mansion tax' on homes worth more than £2 million and making sure that airlines pay for the pollution they cause.

Liberal Democrat Leader Nick Clegg said:

"Under Labour the tax system is complex, unwieldy and most of all unfair.

"This has to change. Liberal Democrats will rebalance our tax system to make it fair once and for all.

"We are proposing the biggest tax switch in generations. A radical overhaul to make sure those at the top pay their fair share in order to put money back in the pockets of people who need it.

"Unlike the Conservative party, we are setting out in full, in detail, where every last pound of the money will come from.

"That's why this is a tax cut you can believe in."

Underlying all Liberal Democrat tax policy is a strong framework of principles to which all Liberal Democrat tax policies will conform. These are:

Fairness - tax policies should be equitable and ensure that the payment of taxes is linked proportionately to people's ability to pay.

Simplicity - tax policies should be clear to taxpayers and new policy should aim to eliminate complexity in existing legislation.

Certainty - tax policies should not be retrospective and should provide the taxpayer with certainty over the correct treatment.

Efficiency - tax policies should provide revenue to the government on an efficient basis and minimise tax leakage.

Transparency - the reasons behind the introduction of new tax policy and the intention of spending of revenue raised should be clearly stated to the taxpayer.

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