Norwich Households Would Benefit from Lib Dem Tax Plan
July 12, 2007 12:00 AM
Norwich South Liberal Democrat Parliamentary Spokesman, Simon Wright, has welcomed plans unveiled today by the Liberal Democrats to reduce the basic rate of income tax to 16p, and scrap the council tax, benefiting many local people on low and middle incomes.
"Many households in Norwich would be significantly better off under these plans," says Mr Wright. "Our local figures show that average Band D households in Norwich would save over £1000."
Proposals in the Liberal Democrat tax policy paper, 'Reducing the burden: Policies for tax reform' would -
· Save a typical pensioner couple through proposals including scrapping council tax, which would be replaced with Local Income Tax (LIT) based on earnings
· Save a typical double-earning couple in Norwich Band D household over £1,000 a year through measures including a 4p cut in the basic rate of income tax (see table below)
· Remove tax loop-holes exploited by the super-rich
· Reform stamp duty to reduce the amount of tax paid on properties worth less than £500,000
· Reform Inheritance Tax, with the aim of raising the starting threshold to £500,000
Simon Wright said: "The current system of taxation is unfair. The poorest pay a higher proportion of their income in tax than the super-rich. Since Labour came to power ten years ago, wealth inequality has actually risen. The situation is worse now than it was under Margaret Thatcher."
"Low and middle income earners currently shoulder too heavy a tax burden. These proposals will make the tax system fairer. Tax cuts for the majority will be paid for by the very wealthy, and those with environmentally damaging lifestyles."
"These proposals will be debated and voted on at the Liberal Democrat Conference in Brighton in September. I will be at the debate, and I will be supporting these plans which benefit many people living in Norwich."
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