Lib Dems publish plans for fairer and greener taxes

11.12.53pm GMT Fri 11th Aug 2006

The Liberal Democrat's Tax Commission has unveiled its proposals for a fairer, greener and simpler tax system.

The Commission proposes to:

• Lift two million people on low income out of tax

• Cut the basic tax rate by 2p and take 1.3 million people out of the upper tax rate

• Tackle climate change by taxing pollution

• Cut the number of tax rates and reliefs for both individuals and businesses

Launching the report, Liberal Democrat Shadow Chancellor, Dr Vince Cable MP said:

"These proposals demonstrate our commitment to tackling inequality and environmental damage while maintaining financial discipline.

"The tax changes totalling £18 billion a year are the most progressive policies proposed any party in recent history. This is achieved without raising overall levels of taxation.

"The changes in income tax will make the tax system fairer for those on low and middle incomes. Specifically this will benefit the vast majority of pensioners, key public sector workers and young professionals.

"These tax cuts for the majority will be paid for by the wealthy and those with environmentally damaging lifestyles."