I realise that title could be directly from a Cowley Street press release but it is true.
Labour have had twelve years to do something like this but have pussy footed around terrified of being seen as too left wing. They have even done stupid and wrong headed things like abolish the 10p tax band which has taken us in the opposite direction.
Now, the Lib Dems are proposing to increase the tax free band to the first £10,000 of income paid for by closing tax loopholes for big business and the wealthy such as:
- 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.
I am 100% behind this move. This is the sort of measure we need that will put £700 in people's pockets who are actually more likely to spend it, and we really that at the moment. It will be interesting to see how the other parties react to this.
I see Alix is already praising this move from the rooftops. She is a long standing proponent of this sort of thing.
LDV has a CIL post on the measures from Vince also.