Liberal Democrat Manifesto 2010 Your Money Fair Taxes And Fair Benefits
Liberal Democrats want to make the tax and benefits system fair, so that everyone, be they young or old, can afford to get by.
fair taxes and fair benefits to help every family get by
Liberal Democrats want to make the tax and benefits system fair, so that everyone, be they young or old, can afford to get by. We have plans for the most radical, far-reaching tax reforms in a generation.
These changes are desperately needed. Conservative and Labour governments have changed Britain into one of the most unequal societies in the developed world, where ordinary people struggle to make ends meet while the richest benefit from tax breaks. The poorest fifth of the population pay a higher proportion of their income in tax than the richest fifth.
We set out in this manifesto a clear plan to bring the budget back under control, being honest about the tough choices we need to take. We will cut taxes for millions of working people and pensioners, paid for by making sure that the very wealthy pay their fair share and that polluting air travel is properly taxed. We will boost the state pension by immediately restoring the link with earnings growth.
tax fairness for everyone
Under a Liberal Democrat government, you will not have to pay any income tax on the first £10,000 you earn. This will put £700 back into the pockets of millions of people on low and middle incomes and free 3.6 million more people on low incomes from having to pay any income tax at all. In this way, we will help people who are struggling to make ends meet and provide an incentive to work and save.
This change will be paid for by:
• Giving tax relief on pensions only at the basic rate, so that everyone gets the same tax relief on their pension contributions.
• Taxing capital gains at the same rates as income, so that all the money you make is taxed in the same way.
• Tackling tax avoidance and evasion, with new powers for HM Revenue & Customs and a law to ensure properties can’t avoid stamp duty if they are put into an offshore trust.
• Ensuring pollution is properly taxed by replacing the per-passenger Air Passenger Duty with a per-plane duty (PPD), ensuring that air freight is taxed for the first time. We will also introduce an additional, higher rate of PPD on domestic flights if realistic alternative and less polluting travel is available.
• Introducing a Mansion Tax at a rate of 1 per cent on properties worth over £2 million, paid on the value of the property above that level. In addition we will reform the system of ‘non-domiciled’ status, allowing people to hold such status for up to seven years; after that time they will become subject to tax on all offshore income in the same way as domiciled British citizens.
Liberal Democrat Manifesto 2010 : 4 Steps to a Fairer Britain
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