From Bill Smith
While I am all in favour of raising the threshold levels for income tax. This was long overdue since they have never been properly indexed and the point had arrived where even those on minimum wage were being taxed.
However a truly progressive tax system would levy Income tax in preference to VAT, which is a tax which is equally levied on rich and poor indiscriminatingly. Income tax was first imposed at 2.5 percent and has steadily grown to 20%. The comparable tax which was imposed before the intoduction of VAT was Purchase Tax which was generally under 5% and was only imposed on what were considered luxuries.
It is questionable that earnings should be taxed at almost the same level when they are spent as when they are received.
Nor does it make any sense that earned income is taxed at a higher rate than unearned income - even if you ignore the National Insurance paid on earned income.
Bill Smith
Nottingham
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From Liz Pym - 21 February
Regarding tax - a lot of low paid workers are earning so little that they earn under £10000 a year so would not benefit from this threshold.. There are employers who are employing lots of part-timers in order not to get involved with paperwork concerning National Insurance and taxes - How are the Lib Dems going to solve this problem?
The 'I' Newspaper have highlighted the problem of people being paid so little that they would not benefit from this £10000 ceiling and were concerned about this.
From Paul King Chesterfield - 20 March
I agree with Stephen Williams that we must press George Osborne to be fair to the many and not just the few. My problem is that the income tax measures are being off-set by other changes - in working people's tax credit, in increased charges for public services, cancelling of amenities including bus services. We cannot simply preen ourselves on the Income Tax rebates when this is the case; we cannot be that naïve and dishonest. Poor people can see through us.
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