ISLINGTON'S LABOUR MPs OPPOSE LIB DEM PROPOSAL FOR FAIR TAXES FOR THE RICH (Islington Liberal Democrats)

Islington Liberal Democrats <Islington_ld@cix.co.uk>

ISLINGTON'S LABOUR MPs OPPOSE LIB DEM PROPOSAL FOR FAIR TAXES FOR THE RICH

July 23, 2007 10:26 AM

The 10p tax abolition will hit local people hard

Labour's abolition of the 10p rate has hit low earners hard

A Liberal Democrat proposal for fair taxation of the wealthy was voted down by Labour MPs in the House of Commons last week [Monday 16 July], as the Tories sat on their hands. The motion was proposed in an opposition day debate led by Shadow Chancellor Vince Cable.

Liberal Democrats are calling for the closure of loopholes in capital gains tax which allow the very wealthy to pay less tax than their cleaners. They also want to reduce the higher rate relief that the highest earners get on pension contributions, and increase green taxes. This would allow the basic rate of income tax to be cut, and council tax to be abolished and included in income tax instead.

Bridget Fox comments "Under Gordon Brown, tax has become less fair. Council tax hits pensioners hard. Middle-income families are disproportionately burdened by stamp duty and inheritance tax thresholds, while the poorest tax payers now pay double since Gordon Brown abolished the 10p starting rate for income tax. "This is a particular problem for Islington families where all homes come above the stamp duty threshold, and the gap between rich and poor is wider than ever.

I think it's wrong that private equity millionaires pay less tax than their cleaners. It's disgraceful that Jeremy Corbyn and Emily Thornberry failed to vote for fairer taxes for the rich."