The Lib Dems in Government are leading the way in pushing for those on low and middle incomes to pay less tax, funded by those at the top paying a bit more.

As the Lib Dem website explains:

Imagine a mum who works 3 days a week as a teaching assistant – earning £10,000 a year or just over £190 a week. Under Labour she paid more than £1,000 in income tax and national insurance. Although she wanted to work more days a week she knew it was not financially worth it. Under Labour; once tax, tax credits and housing benefit has been deducted, for every extra pound she earned she was able to keep just 10.5p.
Under our plan she would see her income tax bill cut to zero making her £700 a year better off.

This is a Lib Dem policy, putting more money in the pockets of those who need it most, and it’s just one of a whole range of things the Lib Dems are doing in Government to make the system better and fairer:

As part of this Coalition, Liberal Democrats are calling time on our unfair and out-of-whack tax system.

• We’ve clamped down on tax avoiders – targeting an extra £7bn every year
• We’re taxing the banks by an extra £2.5bn every year
• We’ve stopped inheritance tax cuts for millionaires
• We’ve put up Capital Gains Tax
• We’re ending the scandal, under Labour, of a hedge-fund manager paying less tax on their shares than their cleaner paid on their wages
• We’ve reduced tax breaks on pension funds for the super-rich
• We have retained the 50p rate
• And our overall priority is freeing the lowest-paid from income tax altogether and cutting income tax for millions of ordinary workers

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