Liberal Democrat PPC (Cambridge),
Julian Huppert's reply
"I agree in principle with what you say, but not with the details.
I would make the tax free allowance £10,000 for all people. Your proposal would mean that if someone's income increased from 17,999 to 18,000, they would pay around 700 pounds extra in tax.
I support entirely the Lib Dem proposals for a fairer tax system".
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Re "Your proposal would mean that if someone's income increased from 17,999 to 18,000, they would pay around 700 pounds extra in tax":
ReplyDeleteAs it currently stands, a person that earns £18,000 a year will get taxed £2,305 (excl NI contributions and incl tax free personal allowance). This will remain the same under FTC policy, we are not changing this. Compared to the current system, they will not pay an extra £700. However, those that earn less than £18,000 will be better off, in terms of paying less tax. This will be part subsidised by ensuring that the 50% additional rate is applicable for anyone that earns over £100,000 a year.
We hope that has been clarified.
Fairer Tax Campaign Team
*Please note - a minor tax gap anomaly will arise for those that earn £18,000 to £18,880. We propose that this can be covered by offering a tax rebate (in part or whole) to anyone that falls into the aforementioned band. Compared to the status quo, those that earn less than £18,000 will be far better off as a direct result of our changes, in terms of paying less tax. Thus, millions of people on lower incomes will benefit from the changes that we propose.
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