Lib dem plan could take a million out of income tax
More than one million low-income earners would be taken out of the income tax net altogether under Liberal Democrat plans to raise the tax-free personal allowance to close to £13,000.
Danny Alexander, the Chief Secretary to the Treasury, signalled that the move was likely to be in the party’s next manifesto, by declaring that no one earning the minimum wage should have to pay tax.
The personal allowance is set to rise to £9,205 in April and to £10,000 in 2014, fulfilling a key Liberal Democrat demand in negotiations over the Coalition agreement.
But Mr Alexander said: “We want to go even further, so that someone working full time on the minimum wage pays no income tax at all and those on low and middle incomes receive further big tax cuts.”
It is thought the allowance would need to rise to about £12,900 to cover full-time earnings on the adult minimum wage.
Mr Alexander’s intervention is a response to the Labour leader Ed Miliband’s announcement of his party’s support for a new 10p rate of income tax to ease the burden on the low-paid.
The Labour plan would pay for the new rate with a “mansion tax” on homes worth more than £2m, which would apply to about 70,000 homes and raise about £2bn a year,
Mr Alexander said: “The Labour Party’s pale imitation at fairer taxes is a 10p rate gimmick designed to distance themselves from the tax rises they imposed when in government.
“The Lib Dems are the only party that will radically cut taxes for people on low and middle incomes.”
Grant Shapps, the Tory chairman, said this week he would “love” to raise the tax threshold above £10,000.
- 1 Is this bridge haunted by the ghost of nu rave?
- 2 Woman filmed launching racist tirade against men on the Tube for speaking in 'own lingo'
- 3 The West has it totally wrong on Lee Kuan Yew
- 4 Scientists have discovered a simple way to cook rice that dramatically cuts the calories
- 5 Noel Gallagher: I lost sh*tloads of money, a few million, didn’t tell my wife
Is this bridge haunted by the ghost of nu rave?
Saudi Arabia says it won't rule out building nuclear weapons
Germanwings plane crash: Andreas Lubitz 'had eyesight problems' and woke from nightmares 'screaming we’re going down'
Jeremy Clarkson 'could be given minder' ahead of a potential Top Gear return
Zayn Malik's departure from One Direction shows the perils of fame in the age of social media
Ukip supporters are 55 or older, white and socially conservative, finds British Social Attitudes Report
JK Rowling responds to fan tweeting she 'can't see' Dumbledore being gay
Jeremy Clarkson sacked live: Alan Yentob 'wouldn't rule out' ex Top Gear host's BBC return
David Cameron calls Labour 'hopeless, sneering socialists' while announcing 7-day NHS plans
Revealed: Putin's army of pro-Kremlin bloggers
The West has it totally wrong on Lee Kuan Yew
£6 per hour: Recruitment Genius: This is an exciting opportunity to join a gro...
Negotiable: Recruitment Genius: A Service Delivery Manager is required to join...
£12000 - £24000 per annum: Recruitment Genius: A opportunity has arisen for a ...
£32000 - £38000 per annum: Ashdown Group: A successful accountancy practice in...