Dundee LibDems criticise failure of Labour's Tax Credits (Dundee Liberal Democrats)

Dundee Liberal Democrats <info@dundeelibdems.org.uk>

Dundee LibDems criticise failure of Labour's Tax Credits

October 5, 2006 4:22 PM

Cllr Helen Dick, Liberal Democrat Councillor for Dundee's Strathmartine Ward

Cllr Helen Dick criticises failure of Labour's Tax Credits

Dundee Liberal Democrats today (Thursday 5th October) slammed Labour's over-complex tax system, labelled in a report by the Institute of Fiscal Studies as "a disincentive to work."

Dundee Liberal Democrat councillor for Strathmartine Ward, Cllr Helen Dick, said, "This IFS report shows that that millions of people find it more attractive to stay at home rather than go to work. It is a shocking indictment of Labour's failure."

The IFS report showed that the tax credits system was discouraging some 2.2 million people on lower incomes from working more, because if their incomes rise the tax credits will be taken away and they face paying up to half of their extra income in tax.

Liberal Democrat Shadow Work and Pensions Secretary, David Laws MP said, "It is critical that we simplify our tax and benefits system to make it fairer and better understood. Citizens need to know that by working harder they can improve their quality of life."