Why not vote for FAIR taxes for ALL?!

Today’s tax system is one of the most unfair and complex within Europe, built up over the years by Labour and the conservatives (Labservative).  The poorest pay the biggest share of their income rather than the richest. The polluters who harm our world simply do not pay enough, and quite alarmingly tax avoidance costs the economy £40 billion. We all know the conservatives devotion to the rich will not change any of these, and with Labours recent 13 years in government they will not be any different. So I propose an alternative, an alternative to the last 60 years of pretty much the same. I firmly believe that the Liberal Democrats are the only party that will have the courage to make life more fairer. I am not asking for the rich to be excessively taxed or the middle incomes to be left free to their own demise, I just ask for a bit of fairness, and I hope you agree.

Liberal democrats as is proposed in their general election 2010 manifesto will cut taxes for pensioners and working people on low and middle incomes, paid for by closing the unfair tax loopholes for the rich, and making the polluters pay for their damage to our environment. This would be the biggest tax reform that Britain has needed for generations. It would put more money into the pockets of ordinary people, when people need it most, at times of economic hardship and recession. And this would make Britain more fairer.

What’s wrong with Britain’s taxes?

Britain’s tax system is far too complex and unfair for many businesses and people to understand. There are millions of people on low incomes, such as; working single parents, pensioners, students and just poorly paid jobs are forced to pay income tax every year. For many this is the partial cause for many pensioners living on the breadline unable to heat their homes, and for what many of us call ‘scrounges’ living off benefits not going out to find a job, because by paying this amount of income tax, work does not pay. Every person living on the minimum wage is forced to pay up to £1,000 of their earnings on income tax. At the moment for every pound you earn over £6,5000 you will have to pay at least 31% tax, which comprises of income tax and national insurance. For many like my father pay over 60% tax, even for the worst effected they pay 90% tax. This is because of the tax credits and means tested benefits are lost. For many who’ll add the cost of child care, travelling to work, or have an elderly family member within a home to their expenses it simply does not seem viable to work. As a whole people having a squeezed disposable income and less people working would have a negative effect on our economy. We need consumer spending growth!

For families, 1.3 million are over paid due to the credit and tax system, this means up to a year later hard pushed families have to find the money they have over  spent due to an administrative error. Disgusting. The actual take up of these work tax credits is as low as 1 in 5. There must be a problem when the government cannot handout money to people, as the population is too confused that they are entitled to it. It must be wasted money as the billions pumped into tax credits are not deterring the raising inequality.

Tax is a mess for managers too. Managers are constantly confused over what they can and cannot do, and subsequently tax accountants are becoming extremely rich in the process. The conservatives recent business taxes decreases are common place, they are simply written on the back of an envelope, not even thought through, just to win votes. In principle there will be a tax decrease, but so few are entitled to it, and if they are, they would be too confused by the amount of hurdles before they can receive it. This complexity and instability hurts our economy, hurts businesses and damages the overall tax take because it gives companies a huge incentive to stretch the system if they can. Sometimes they can decide to leave Britain altogether. The governments own figures show that we are losing £40 billion in tax avoidance. Wouldn’t that be a tidy sum to help pay back the debt per year?

It is totally obvious to me, and I am  sure to any normal voter reading this that we need a total rethink of the taxing system. The way taxes work indicates a lot about a political party, the Liberal Democrats want to create a fair and less complex taxing system. A taxing system that supports economic growth, rewards hard workers, punishes high polluters and strengthen our society by making fairness the central pillar to Britain. This would be the first time ever seen in Britain.

Liberal Democrat values

As a Libdem, I support the basic social and economic case for taxation; a progressive taxation that rewards hard workers, and helps those who need it most. In doing so it would help widen opportunity, boost social justice and reduce excessive inequality; it allows the state to pay for the security forces that keep us safe, such as the police and army.

We also acknowledge the case for excessive taxation. This would deter competition and innovation, and that constant ambition to do better. They are essential to having a strong economy, which is linked to prosperity. When you keep your own money, you can choose what you spend it on; you are empowered! When the government takes your money off you, they can spend it on what they please. Your power is diminished! Excessive taxation on the poorest family’s cause deep harm, their power in society is already at an all time low. This is why I firmly believe in a progressive taxing system, those with the broadest shoulders should brunt more of the weight. This isn’t vindictiveness, this is fairness, and it is ludicrous that the poorest people still pay the highest proportion of their income in tax.

As quoted  by Why to vote LIBDEM. “That is why Liberal Democrats will cut taxes from the bottom, closing loopholes and exemptions that benefit the best off and ensuring polluters pay for the damage they cause. A fair tax system rewards hard work, enterprise and initiative. It penalises pollution and other threats to the common good. It bears down on unearned wealth. And it should be simple to understand and administer so that everyone, from small business to large, from low paid workers to the very rich, plays by the same rules.”

Solution

Under a Liberal democrat government, people will not pay a single penny of income tax on the first £10,000 they earn. That means up to four million low earners, students and pensioners are tax-free, and millions more pay £700 less tax a year, so for a working family of four that’s nearly an extra £3,000 pound in the household. That you have authority to spend as you wish, maybe a new car or a holiday, or to save for the times ahead. Of course this is not free money, the money to pay for this tax break to ordinary people are paid by the biggest polluters. Secondly, the Libdems will remove all tax loopholes, exemptions and get out clauses that give unfair benefit to the people at the top. But most importantly, the most revolutionary tax on wealth put forward to this British public in this years manifesto. Money will be raised by the new ‘Mansion Tax’, people living in a house excluding pensioners and students worth over £2 million will have to pay a new 1% levy. This is popular because it is fair and right. Currently, a family home worth £750,000 is liable for the same council tax as a £20 million mansion. Under these plans a married couple say a staff nurse and a police officer will be £1,400 better off. A stark difference from the £150 poultry conservative marriage benefit, and unlike the conservatives you don’t just have to be married to receive the tax break. It is for every one earning under £100,000.

Finally

Tax will be one of the biggest dividing lines during this election. You can either choose the overly complex and unfair taxes under Gordon Brown and the Labour party. Or David Cameron and his tax cuts for the millionaires, and a tax increase for just about everyone else. Yes that includes YOU AND ME!!!!!!!!! Or the Liberal Democrats who want fair taxes for EVERYONE!

K