Lib Dem Tax Package Would Be Good News For People Of West Worcestershire

9.35.55pm UTC (GMT +0000) Mon 21st Aug 2006

West Worcestershire's Liberal Democrat Parliamentary Candidate, Richard Burt, has welcomed plans unveiled for a fairer, greener and simpler tax system. He said: "These proposals would mean lower tax bills for most households in West Worcestershire as well as tackling inequality and environmental damage."

The proposals published by the Liberal Democrat Tax Commission would:

• Save a typical pensioner couple around £1,600 a year through proposals including scrapping council tax

• Save a typical double-earning couple around £1,500 a year through measures including a 2p cut in the basic rate of income tax

• Lift two million people on low income out of tax completely across Britain by reducing the 10p tax rate to zero

• Take 1.3 million people out of the top rate of income tax nationally by raising the threshold to £50,000 p.a.

Richard added: "The current system of taxation is not fair. The poorest 20% of households pay a bigger share of their income in tax than the richest 20%. Wealth inequality has actually risen since Labour came to power. These Liberal Democrat proposals will make the tax system fairer for those on low and middle incomes. Specifically this will benefit the vast majority of pensioners, key public sector workers and young professionals.

"These tax cuts for the majority will be paid for by the wealthy and those with environmentally damaging lifestyles."

However, Mr Burt will back an amendment expected from Oxford West MP, Evan Harris, calling for a 50p tax band for earnings over £150,000 when the party's proposals are debated and voted on at the Liberal Democrat Conference in Brighton in September.

"I am worried that the party is ditching its long term commitment to a higher tax band for top earners. Is it fair for the David Beckhams of this world to pay the same rate of income tax as the head teacher of a local secondary school? People who earn most should pay that little bit extra towards the services we all need. Under these proposals, a single person could earn £150,000 per annum and a professional couple could jointly earn £300,000 before contributing an extra 10p in the pound on earnings above that amount," said Mr Burt.