Make tax system fairer says Lib Dem leader. (Garston and Halewood Liberal Democrats)

Garston and Halewood Liberal Democrats <info@garstonld.org.uk>

Make tax system fairer says Lib Dem leader.

November 12, 2008 10:13 AM

Nick Clegg MP Yesterday evening, Liberal Democrat Leader Nick Clegg called for the unfair tax system to be fundamentally rebalanced by giving big tax cuts to people on low and middle incomes and asking the rich to pay their fair share.

In a speech to the Royal Commonwealth Society yesterday, Nick Clegg discussed how Britain should respond to the global recession. He argued that now is the time for ambitious tax cuts to stimulate the economy not 'timidity and tinkering'.

Liberal Democrat plans would reduce basic rate income tax by 4p in the pound, giving nearly £1,000 back to a worker on £30,000 a year. This would be funded by closing tax loopholes enjoyed by the very wealthy and by increasing some green taxes.

Nick Clegg said in his speech:

"How should Britain deliver economic stimulus?

"We hear talk of tax cuts emerging from Downing Street, but they are likely to be small, and short term. Funded through borrowing, the money will have to be paid back later. So it's meagre tax cuts today, giant tax rises tomorrow from Brown.

"Meanwhile the Conservatives want a piffling incentive for businesses to take on new workers that won't put a penny in the pocket of a single family in Britain. Neither package comes close to what's needed.

"No wonder people are cynical about politics. All they get from the Government and the official opposition is timidity and tinkering.

"Now is not the time for small-mindedness. It is a time for ambition.

An opportunity to fundamentally rebalance Britain's unfair tax system.

"Real tax cuts - big, permanent and fair - for the people who need them.

Funded by making the wealthy pay their fair share, ending the special exemptions and loopholes they've profited from for so long.

"Liberal Democrats would reduce basic rate income tax by 4p in the pound. That would give nearly £1000 back to a worker on £30,000 a year.

"Funded by four changes. One: ending upper rate pensions relief - so the wealthy don't get extra pension help from the tax man. Two: taxing capital gains at the same rates as income. So bankers and executives can't get away with paying 18% tax while their cleaners pay 31%. Three: green taxes to protect our environment. And four: tackling the scandal of corporate tax avoidance."