Cable calls for ‘fairer not higher’ taxes
The Liberal Democrats should be a party of “fairer taxes not higher taxes”, Treasury spokesman Vince Cable said.
The party is currently looking at its tax policy, with speculation rife that the proposed 50 per cent tax rate for those earning more than £100,000 a year will be dropped.
This comes after leader Charles Kennedy suggested some voters might have been put off by Lib Dem tax pledges at the last election.
Dr Cable told the party conference there were some rich people would “can and should” pay more in taxation.
But he warned delegates that many voters associated the party with “high taxes and big spending”, and said the party’s credibility hinged on changing that perception.
The aim should be to create a tax system that is “simpler”, “more progressive”, and “more decentralised”, he said. This approach could actually help poorer people by lifting those on low wages out of the taxation bracket altogether.
“There are many people who pay too much tax. It is fundamentally wrong that people – be they workers or pensioners – who are bring home less than the equivalent minimum wage should be paying income tax, on top of council tax and indirect taxes,” he said.
He also said taxation policy could also be used to improve the environment, with higher charges for the heaviest polluters.
While admitting that the economy had witnessed “undoubted successes” under the stewardship of Gordon Brown, he said the economy was now “seriously unbalanced” – underpinned by too much personal debt.
“Personal debt, Gordon Brown’s legacy to millions of families, will hang like a millstone around the neck of the British people for years to come,” he said.
And Dr Cable called for a reform in public sector spending – with more disciplined fiscal regulations and prioritising key areas. And gave the example of ID cards, saying their estimated £18 billion price tag meant they were an unnecessary burden on the tax payer.
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