Thu, 26 Jan 2012
The Liberal Democrats believe you should keep more money that you earn. That is why we believe the tax-free threshold should raise to £10,000, saving working people £700 a year and making sure millions of the lowest paid workers don’t have to pay any income tax at all.
Between now and the Budget, Nick Clegg and the Liberal Democrats in Government will be arguing for faster tax cuts for hard-working families, promoting work and growth, and rewarding innovation, paid for by increasing the amount paid by the richest.
And the Liberal Democrats in Coalition are already making the difference:
Imagine a mum who works 3 days a week as a teaching assistant - earning £10,000 a year or just over £190 a week. Under Labour she paid more than £1,000 in income tax and national insurance. Although she wanted to work more days a week she knew it was not financially worth it. Under Labour; once tax, tax credits and housing benefit has been deducted, for every extra pound she earned she was able to keep just 10.5p.
Under our plan she would see her income tax bill cut to zero making her £700 a year better off.
You can read Nick's speech to the resolution Foundation here.
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