The latest proposals by the Liberal Democrats to reduce income tax and close loopholes in inheritance tax have been revealed. The Liberal Democrats are proposing to cut income tax by four pence in the pound, to 16p, which would be the lowest since 1916.
They have also indicated that they would like to nearly double the inheritance tax threshold to £500,000.00. Council tax would be replaced with a local income tax, stamp duty would be reformed and green taxes would be increased. The Liberal Democrats believe that these proposals would assist the low to middle wage earners in the United Kingdom and force the rich and wealthy to contribute more.
Our view
Given the current political climate, it is unlikely that the Liberal Democrats will get into power and so they can promise what they like. We also suggest that the British public need to be given greater credit for spotting ‘vote winner spin’. Many of us do not mind paying taxes for good services, there are just certain taxes that seem a little unfair such as those that penalise people who have worked hard and invested wisely i.e. income tax and inheritance tax which are the cards the Lib Dems are playing here.
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