THE Government aims to relieve everyone of the need to pay tax on the first £10,000 they earn by the next General Election.
A good start has been made.
But we need to move faster on it.
Every spare penny available should be directed towards this target. Indeed, we should set the final goal as a tax-free minimum wage. There is no point calling it the minimum wage if you then tax it.
For those in the Labour Party who suggest that we should instead have a VAT cut, consider this.
The administrative cost to businesses and the tax authorities of this action is enormous. A far easier way of putting cash back into people’s pockets is to alter the income tax and national insurance system in favour of low and middle income earners.
A VAT cut of 2.5 per cent would save an affluent person buying a £60,000 car £1,250. That is more than most low earners pay in total on VAT in a year. Far fairer is to cut tax and NI for low and middle income families.
As for the Tory Right proposing to cut the 50p tax rate.
They are plain wrong. Those with the broadest shoulders should contribute more at this difficult time.
Any change in this tax should only happen once we have spending under control.
There is an alternative tax which can’t be evaded by millionaires – the Lib Dem mansion tax.
After all you can’t take your mansion to a tax haven.
Councillor Mark Wilkes, Durham County Council.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereLast Updated:
Report this comment Cancel