As a party, we are proposing that we increase the Income Tax threshold from the current £12,500 phased to £20,000.
There is a tripartite argument in favour of such a proposal:
- it would incentivise work and encourage the work ethic’ back onto the agenda.
- it would take people out of the lower end of the income spectrum out of paying tax completely. Free up 6 million people from income tax, by lifting the minimum threshold to £20,000, from £12,500 pa. This is 1 in 5 taxpayers. Basic income tax rate stays at 20%. This would be paid for by a tapered progressive tax rate
- Would, stimulate the economy: tax cuts should be focused on low- and middle-income households who tend to have a higher propensity to spend high degree of their income than high-income households.
Motion approved at November 11th Liberal Party Special Assembly.