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Taxation: The Tax Credit System
Taxation: The Tax Credit System
Other Measures
VAT, like most taxes on spending, tends to be regressive. The Liberal Party therefore finds merit in a higher rate of VAT for luxury items and extension of the zero rate. The Liberal Party believes that the community should enjoy the benefits of publicly-created land values and, to ensure this, supports the Taxation of Land Values. Liberals also believe that those who have a conscientious objection to the use of their taxes for military purposes should have the right to register their objection and to divert that portion of their taxes into a non-military security fund.
We believe that tax incentives have a role to play in the promotion of sound environmental policies by businesses. We suggest that tax incentives could be offered to companies which use recycled materials and special duties added to goods produced in ways which are environmentally damaging. Liberal Party proposals include: 1. the combining of NI and income tax; 2. income tax to be made more simpler, with tax free earnings up to 10,000 and a top rate of 50% on earnings over 100,000; 3. changes to the tax structure to remove many of the distinctions between capital gains and income to ensure that tax is not avoided by arbitrary changes in the method of payment; 4. greater resources dedicated to tracing tax evasion; 5. more relief against corporation tax in respect of capital expenditure; 6. higher rates of capital gains tax for short term (speculative) gains. In particular, a tax would be introduced on the profit from short-term trading of large sums of currency on the money markets; 7. the introduction of Land Taxation to recoup for the community those values it creates; 8. a higher rate of VAT on luxury items; 9. the extension of the VAT zero rate to cover adult as well as childrens clothing and a return to zero VAT on fuel 10. substantial premiums over and above the rate of inflation on vehicle fuels.