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East Midlands Liberal DemocratsBill Newton Dunn and the Liberal Democrats - working for you across the East Midlands |
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Lib Dem tax plans would end income tax for one in five Chesterfield workers
February 25, 2010 9:08 AM
Originally published by Chesterfield Liberal Democrats
Originally published by Chesterfield Liberal Democrats
Chesterfield MP Paul Holmes has welcomed official figures, uncovered by the Liberal Democrats, which show that around one in five workers in Chesterfield would no longer have to pay a penny of income tax under Liberal Democrat tax plans. Paul said, "Gordon Browns abolition of the 10p tax rate hit the poorest the hardest, Vince Cables tax plans would reverse this."
Paul added "Raising the tax threshold from £7,500 to £10,000 would also provide more encouragement to come off benefits and enter work."
The Government's own figures show that 18% of Chesterfield's working residents earn less than £10,000 each year. The Liberal Democrats propose to end income tax on the first £10,000 earned. This would mean that 3.6 million working people and low income pensioners across the country would no longer have to pay any income tax at all. Millions more would have an income tax cut of £700 a year.
By closing tax loopholes to make sure that the extremely wealthy and polluters pay their fair share, the Liberal Democrats would create a fairer tax system, so that everyone, young or old, can afford to get by. The poorest fifth of people still pay more of their income in tax than the richest fifth: Labour's tax policies have hit the people at the bottom the hardest, and the Tories' top priority is tax cuts for millionaires.
ENDS
Notes to editors:
1. Figures from the Office for National Statistics show that 18% of Chesterfield's workers earn less than £10,000 a year: Table 10.7a http://www.statistics.gov.uk/downloads/theme_labour/ASHE-2009/2009_res_pc.pdf
2. Figures from HM Revenue and Customs show that the poorest 20% of people pay more of their income in tax than the richest 20%: http://www.hmrc.gov.uk/stats/income_tax/table2-5.pdf
3. The Liberal Democrats' policy on income tax can be read in full here: http://libdems.org.uk/siteFiles/resources/PDF/Policy%20Briefing%20-%20Your%20Money%20Feb%2010.pdf
4. Applying Liberal Democrat tax policy to the mean income of Full Time Earners in Chesterfield (ONS Statistics) would reduce the average amount of income tax paid by £705 each year.
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