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Dundee LibDems back income tax cut

March 7, 2008 6:31 PM

Chancellor Alistair Darling should cut national income tax, paid for by rises in green taxes, when he delivers his Budget on 12th March, said Dundee Liberal Democrats today (Friday 7th March).

Liberal Democrat Shadow Chancellor, Vince Cable MP, said, "The emphasis of Darling's first Budget should, we believe, be on tax fairness: cutting tax on low and middle earners (a 16p basic rate) financed by cutting back reliefs favouring the wealthy and by environmental taxes, as on aviation."

Here in Dundee, LibDem Councillor Fraser Macpherson said, "The people of Dundee along with millions of citizens across the UK have been squeezed by higher prices for energy and rising council tax over the past year.

"The Budget is an ideal opportunity for Alistair Darling to cut the burden of tax on low and middle income households.

"The Liberal Democrats therefore want to see a cut in national income tax to 16p in the pound. This should be paid for by increasing the taxes on activities that pollute most, such as running the most polluting vehicles or flying.

"I strongly believe that the Liberal Democrats' plan of shifting more of the tax burden from people's income and onto pollution will benefit people in Dundee.

"In Britain, the poorest fifth of households pay a bigger share of their income in tax than the richest fifth. The wealth divide between rich and poor has actually risen since Labour came to power.

"The Budget is an ideal opportunity for Labour to put right the problems they have allowed to grow since they first came to office in 1997."

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