Lib Dems attack Labour for unfairly taxing the poor
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The Liberal Democrats have unveiled evidence that the poorest 20 per cent of people are losing more of their income in tax than they did in 1997, while the richest 20 per cent are paying less.
According to Lib Dem analysis of Treasury figures, in 1997 the poorest 20 per cent of households had a gross income of £7,300 and paid £2,760, or 37.8 per cent, in tax.
In the same year the richest 20 per cent of households had a gross income of £48,720 and paid £17,200, or 35.3 per cent, in tax.
In 2008, the latest year for which data is available, the poorest 20 per cent of households had a gross income of £11,105 and paid £4,302 in tax, or 38.7 per cent of their income.
The richest 20 per cent of households had a gross income of £74,247 and paid £25,926, or 34.9 per cent, in tax.
Liberal Democrat leader Nick Clegg said: “Despite everything they said in 1997, life has got harder for people at the bottom and easier for people at the top.
“All the promises of fairness in Labour’s manifesto should be taken with a barrelful of salt. They cannot be trusted. This is yet another manifesto for an unfair Britain.”
Clegg revealed further details of his party’s manifesto pledge for a £17bn tax switch to help rebalance the tax system by raising the personal allowance to £10,000.
He said the income tax cuts will be paid for by closing loopholes that unfairly benefit those at the top, a crackdown on tax avoidance, a new mansion tax and higher aviation duties.
Clegg said: “Only the Liberal Democrats have a plan to radically rebalance the tax system to make it fair for all. We will ensure no-one pays tax on the first £10,000 they earn, paid for in full by closing loopholes that unfairly benefit the wealthy.
“Our plans would be the biggest overhaul of British taxes since the Second World War.”
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Readers' comments (2)
Julian Stevens | 12 Apr 2010 3:53 pm
Labour = Tax & Spend. It always has and always will.
Poor old Gordon must be having a lot of restless nights wondering how he got the country into such a mess that now (if he's given the chance) his only option will be to tax us all even more but actually spend less on public services.
The sooner he's out the better.
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Si | 12 Apr 2010 6:46 pm
Labour = Tax & spend
Tories = Tax the same (minus £150 for married couple who earn £44,000 or less...wow) and spend less (infrastructure crumbles).
Guess it's time to see of the Lib Dems have got the balance right between small government, less taxes and their policy towards social justice and public services.
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