Fairer and Greener - Lib Dems Propose Radical overhaul of Tax System

9.00.00am UTC (GMT +0000) Fri 11th Aug 2006

'We don't need more taxes, we need fairer taxes.'

Today the Liberal Democrat tax commission 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

Commenting on the proposals, Lembit Öpik, Leader of the Welsh Liberal Democrats, said:

"These proposals would help tackle inequality and environmental damage without increasing the overall tax burden.

"The Liberal Democrats believe that we don't need more taxes, we need fairer taxes, and the changes we're putting forward are the most progressive policies proposed by any party in recent history.  

"Our radical changes would benefit the vast majority of pensioners, key public sector workers and young professionals in Wales. Tax cuts for the majority will be paid for by the wealthy and those with environmentally damaging lifestyles.

"The current system of taxation is outdated and unfair, with the bottom 20% paying proportionately more of their income in tax than the richest 20%.  It's outrageous that since Labour came to power the gap between rich and poor has grown even greater!"

Roger Williams, Welsh Lib Dem MP for Brecon and Radnorshire, said:

"The Government's approach to taxation has failed to provide social justice and failed to safeguard our environment.  Under Labour, levels of green taxation have been falling and carbon emissions have been rising.  When it comes to the environment both Labour and the Tories talk big and act small.  Warm words and empty statements won't tackle climate change.

"Our balanced proposals would ensure polluters pay an appropriate price for the environmental damage they cause.  These policies would make a real and significant difference in the fight against climate change.

"The Liberal Democrat vision is a fairer, greener Britain.  These tax changes would play a significant role in reaching that goal."