The Lib Dems today presented the tax system we’ll be taking to the electorate at the next General Election. 2 key points I want to make:
- Increasing the income tax threshold to £10k is what this country needs, it amounts to a £700 tax cut to most people and will take 4 million people, many pensioners, out of tax. This will encourage more people into work and alleviate the poverty trap. Digby Jones, of Bromsgrove and CBI fame, even applauded the policy on Question Time and attacked the other mainstream parties for not doing more to help those looking to work.
- Much has been made of the mansion tax, and I must admit I didn’t initially agree with it as it was an annual tax based on assets and not on the ability of the individual to pay (why I like a local income tax). However, it is important to point out that it is a temporary tax which can be implemented quickly whilst the system of local income tax is being introduced to replace the current council tax. As it’s temporary it gets my vote.