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20 April 2009

Barrett backs 700 cut in income tax

 

“Successive Conservative and Labour Governments have presided over a tax system that creates loopholes for the wealthy and does nothing for those who really need help.

“For too long governments have been letting companies stash their money in offshore tax havens while taxpayers are left to foot the bill. After spending huge sums helping the banking industry it is now time for a fairer tax that helps hard pressed families”

Scottish Liberal Democrat Leader Tavish Scott added:

“By making the wealthiest pay their fair share, we can put £700 into the pockets of middle and lower income Scots.”

 

Notes

Raising the personal allowance to £10,000 for all people will mean that those on the standard personal allowance will see an increase in their allowance of £3,525 in 2009/10; this will give an effective tax cut of £705 to anyone earning over £10,000 .

Raising the personal allowance will take approximately four million people out income tax altogether: http://www.hmrc.gov.uk/stats/income_tax/menu.htm

Measures which will be used to pay for this proposed increase in the personal allowance include:

- 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.

Full details of the costing of this tax package will be released in advance of the General Election based on latest HMRC estimates.

New Liberal Democrat proposals to close tax loopholes for big business and the wealthy would give a £700 income tax cut for Scottish families John Barrett, Edinburgh West MP said today.

Ahead of the budget on Wednesday, the party have pledged to raise the income tax personal allowance to £10,000, paid for by closing tax loopholes exploited by big businesses and the wealthy. This will give an effective tax cut of £705 to anyone earning over £10,000 per year.

The major new proposals are a key Liberal Democrat demand for the Budget. 

John Barrett said:

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This website was established while I was a Member of Parliament. The site content is being kept online as a source of information, but all forms / email have been disabled.