Lib Dems Plan Cuts In Income Tax

Here’s an interesting situation. While the Tories are saying that they won’t promise to cut taxes, the Liberal Democrats are proposing a 2p cut in national income tax. .

Our idea is to help the environment by having higher green taxes – particularly on planes and large cars. We would also end capital gains tax breaks for people who have second homes or large share portfolios.

If we do this , we can then CUT income tax for everyone who pays it.

The Tories are already trying to pooh-pooh our ideas. But our treasury spokesman is the highly-regarded Vincent Cable, former Chief Economist at Shell, and he knows what he’s talking about.

See Ming Campbell’s speech today here , and judge for yourself.

  • The 2p cut in income tax will come in handy to pay for all the Lib Dem Green taxes!

    Exactly how will you pay for the extra spending your various spokesmen have promised on roads, health, education, transport etc etc etc….!!!!!

    Never mind it will never happen so you can promise what you like with no fear of ever having to inact this policy!

  • D South is half right. The idea of cutting revenue from income tax and reclaiming it via taxes on pollution has been Lib Dem policy for some time. That will give people the choice – they can keep the money they earn, or they can spend it on petrol/air fuel.

    Where he/she is wrong is that our various spokesmen have NOT promised extra spending on ‘roads, health, education, transport etc.’ Our spending plans are always very carefully costed, and we always get a seal of approval from the FT for that. What Ming is saying is that we don’t need to collect more tax – we need to redistribute the burden, so that those more able to pay are asked to pay more.

    It will never happen? Well, it’s happened in Scotland, where Lib Dems share power with Labour and have implemented many Lib Dem policies.

    Sid Cumberland

  • So the LibDems have a crystal ball and can see what the British economy will be like in 3 or 4 years time?

    I think this ‘headline grabbing’ proclomation is an attempt my the ever desperate Ming to try and build some sort of credibility with the electorate.

    Unfortunatley it sounds as though he has made it up on the back of an envelope!

  • The first rumblings of discontent about Sir Menzies’s speech on tax appear in this week’s edition of Lib Dem News (the party’s weekly newsletter to activists).

    ‘Are any other readers incensed that after months of trying to keep people from making pre-emptive announcements about the deliberations of the Tax Commission before they are put through party democratic processes we are now told in the weekend press that there will be policy announcements this week? The Commission has not yet met to ratify what it will send to F[ederal] P[olicy] C[ommittee], let alone Conference consider them.’

    It’s signed Jock Coates, Secretary of ‘Lib Dem ALTER’ (the exciting ‘Action for Land-value Taxation and Economic Reform’ group…).

  • D South might like to learn to credit his sources, viz Tory blogger Iain Dale’s Diary and I have responded in that forum as follows:

    …but [Iain’s] obviously not been reading [my blog] if he thinks this is the “first sign” of discontent…:) I’ve been bleating on and off for a while about what the Tax Comission might recommend.

    Mind you, since the letters deadline for LDN was well before Ming’s speech, my criticism was/is not so much about anything he did say, than that he was due to say anything at all on tax, direction or specifics, until the democratic processes had been concluded (perhaps especially about “direction” which should come before specifics).

    But having discussed the speech quite widely, including with people on the Tax Commission, I’m much more sanguine about what he said and what it probably means about what the Tax Commission may recommend.

  • First of all, a warm welcome to DSouth, Sid and Jock, thank you for all your comments. Please write some more sometime…

    When all that David Cameron can do is pose for photo -opportunities on green issues – but not actually do anything- I’m pleased to see Ming announcing these proposals. I wouldn’t be at all surprised to see the Conservatives adopting a similar approach in about a year’s time, and if they do – good luck to them.

    As for ‘discontent’ – try the Rochford Conservatives. I think 90 percent of them wanted David Davies or Liam Fox as leader, one of them publicly yelled out “Tosh” when I mentioned David Cameon’s name in the council chamber and another one told me that … oh, I can’t repeat that here.

    There’s just been a revolt at the last Tory Council Group meeting over recycling -most of the old-guard Tories loathe the idea, think it’s something to do with Brussels. Not much sympathy for Cameron’s green photo-opportunities either . So I think our local Tories will only stomach Mr Cameron as leader as long as they think he will win them an election!