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The Liberal Democrats are the only fair tax party The Liberal Democrats are the only fair tax party
(7 months later)
If imitation is the sincerest form of flattery, then both Ed Miliband and David Cameron this week inadvertently erected a "vote Liberal Democrat" sign less than a fortnight before the Eastleigh byelection. Both party leaders demonstrated that in fact it is the Lib Dems who are shaping the future of the British tax system.If imitation is the sincerest form of flattery, then both Ed Miliband and David Cameron this week inadvertently erected a "vote Liberal Democrat" sign less than a fortnight before the Eastleigh byelection. Both party leaders demonstrated that in fact it is the Lib Dems who are shaping the future of the British tax system.
In prime minister's questions this week, David Cameron made clear his support for increasing the income tax personal allowance – a position the Tories are obliged to take under the terms of the coalition agreement. Let's be clear: this is the government's income tax priority only because the Lib Dems fought for it.In prime minister's questions this week, David Cameron made clear his support for increasing the income tax personal allowance – a position the Tories are obliged to take under the terms of the coalition agreement. Let's be clear: this is the government's income tax priority only because the Lib Dems fought for it.
In judging the credibility and sincerity of Labour's apparent conversion to fairness in taxation as expressed in Miliband's speech on Thursday, we should remember what the Labour leader and Ed Balls actually did with the tax system when they controlled it. There was no fairness, just a complex series of loopholes for the rich to avoid tax, and a complex tax credit system that too often trapped the poor in debt.In judging the credibility and sincerity of Labour's apparent conversion to fairness in taxation as expressed in Miliband's speech on Thursday, we should remember what the Labour leader and Ed Balls actually did with the tax system when they controlled it. There was no fairness, just a complex series of loopholes for the rich to avoid tax, and a complex tax credit system that too often trapped the poor in debt.
When the two Eds were in government, there was no mansion tax, just scorn poured on the Lib Dems for suggesting it. Worse, there were loopholes galore in stamp duty, so the very wealthy avoided paying even that. Hedge fund managers paid a lower rate of tax than their cleaners. The top tax rate for 155 of the 156 months they were in office was 40p, not 50p or even 45p, as it will be from April. In fact, Lib Dems – in coalition with the Conservatives – have made sure that the wealthiest will pay more tax in every year of this government than they ever did when Labour governed on their own.When the two Eds were in government, there was no mansion tax, just scorn poured on the Lib Dems for suggesting it. Worse, there were loopholes galore in stamp duty, so the very wealthy avoided paying even that. Hedge fund managers paid a lower rate of tax than their cleaners. The top tax rate for 155 of the 156 months they were in office was 40p, not 50p or even 45p, as it will be from April. In fact, Lib Dems – in coalition with the Conservatives – have made sure that the wealthiest will pay more tax in every year of this government than they ever did when Labour governed on their own.
The hypocrisy of Labour's position is most apparent on the issue of the 10p rate. Miliband and Balls knew when they supported its abolition that it would mean a tax rise for more than 10 million low-income workers. Balls was a Treasury minister at the time, Miliband a senior member of the government. To blame Gordon Brown for it, as they did this week, rather than offering a simple apology, just shows how little they understand why Labour lacks any economic credibility. It wasn't just Gordon Brown who told the public that it was fair: it was Miliband and Balls too.The hypocrisy of Labour's position is most apparent on the issue of the 10p rate. Miliband and Balls knew when they supported its abolition that it would mean a tax rise for more than 10 million low-income workers. Balls was a Treasury minister at the time, Miliband a senior member of the government. To blame Gordon Brown for it, as they did this week, rather than offering a simple apology, just shows how little they understand why Labour lacks any economic credibility. It wasn't just Gordon Brown who told the public that it was fair: it was Miliband and Balls too.
Labour cannot be taken seriously until its leaders apologise for the economic mess they created, apologise for the unfair tax system they left behind, and apologise for letting tax avoidance rip.Labour cannot be taken seriously until its leaders apologise for the economic mess they created, apologise for the unfair tax system they left behind, and apologise for letting tax avoidance rip.
Big tax cuts for people on low and middle incomes were on the front page of the Lib Dem manifesto at the last election. And now it is the Lib Dem idea of fairness that is shaping a better tax system for the future. It is why only the Lib Dems can deliver a stronger economy and a fairer society.Big tax cuts for people on low and middle incomes were on the front page of the Lib Dem manifesto at the last election. And now it is the Lib Dem idea of fairness that is shaping a better tax system for the future. It is why only the Lib Dems can deliver a stronger economy and a fairer society.
We have cut in half the income tax bill for people working full time on the minimum wage. From April this year, more than 20 million people will have had a £600 tax cut, and more than 2 million will have been lifted out of paying income tax altogether.We have cut in half the income tax bill for people working full time on the minimum wage. From April this year, more than 20 million people will have had a £600 tax cut, and more than 2 million will have been lifted out of paying income tax altogether.
Paying no tax at all is far better than a new, complex 10p rate. Our policy is literally twice as good as theirs. Someone who paid only the 10p tax rate until Labour doubled it, has now been lifted out of paying tax altogether.Paying no tax at all is far better than a new, complex 10p rate. Our policy is literally twice as good as theirs. Someone who paid only the 10p tax rate until Labour doubled it, has now been lifted out of paying tax altogether.
We will continue this in government until the first £10,000 you earn is tax free. I'd like us to go further after the election – with the goal that you don't pay income tax until you earn more than the minimum wage. That is the sign of a fair tax party.We will continue this in government until the first £10,000 you earn is tax free. I'd like us to go further after the election – with the goal that you don't pay income tax until you earn more than the minimum wage. That is the sign of a fair tax party.
In government, Labour increased tax on low income households; in government the Lib Dems have led the largest programme of tax cuts for working people for a generation. If it's fairer taxes you want, the Liberal Democrats are the real thing and Labour a pale imitation.In government, Labour increased tax on low income households; in government the Lib Dems have led the largest programme of tax cuts for working people for a generation. If it's fairer taxes you want, the Liberal Democrats are the real thing and Labour a pale imitation.
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