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Clegg sets out tax-cutting plans | |
(29 minutes later) | |
Liberal Democrat leader Nick Clegg has marked a party policy shift by signalling his intention to cut tax for low and middle-income families. | |
In a speech in London, he explained plans to crack down on tax avoidance and reform capital gains, corporation tax and pension tax relief. | |
The party leader said he would tighten loopholes but fight against "excessive taxation" levels. | |
Mr Clegg has accused the government of acting unpredictably on fiscal issues. | |
'Means, not an end' | |
Speaking to the Policy Exchange think-tank, he said he would tighten loopholes which allow individuals and firms to do business in the UK but keep their wealth in off-shore trusts. | |
The Lib Dems would index-link capital gains to inflation and tax them as income, he added. | |
Gordon Brown treats tax likes Forrest Gump treats a box of chocolates - you never know what you're going to get Nick Clegg, Lib Dems | |
The party would also cut the headline rate of corporation tax, Mr Clegg pledged. | |
And the Lib Dem leader said he would limit relief on pensions for higher rate taxpayers. | |
Mr Clegg added: "Tax is not a good thing in and of itself. Tax is a means to an end. So governments must never tax for the sake of it." | |
He criticised Gordon Brown's record as chancellor, including the manner of the abolition of the 10p income tax rate in his final Budget and the "fiendishly complicated" tax credits system. | |
Mr Clegg said: "It's a tombola tax system. Gordon Brown treats tax likes Forrest Gump treats a box of chocolates - you never know what you're going to get." | |
BBC political correspondent Laura Kuenssberg said the plans were a sign that, in a harsher economic climate, the debate on tax was shifting. | |
At the Liberal Democrat spring conference in March Mr Clegg suggested that tax cuts should be on the agenda. | |
The party is already committed to a 4p reduction in the basic rate of income tax. | The party is already committed to a 4p reduction in the basic rate of income tax. |
But in his speech Mr Clegg said the Lib Dems would "look in depth" at whether to go further. | |
He also reiterated his party's policy of scrapping council tax and replacing it with a local income tax. |