Every penny raised from cracking down on wealthy tax dodgers will fund tax cuts for middle and low earners under Liberal Democrat plans.
The detailed plans come a day after the Lib Dems delivered on their 2010 commitment to raise the Personal Allowance to £10,600, which will deliver a tax cut worth £825 to those on middle and low incomes.
“Every student who leaves school or college can now earn £10,600 before they pay a penny of tax,” Judith Bunting says. “In 2010, it used to be £6,800 – that’s a big difference.”
The Lib Dems will fund increases to the Personal Allowance to £12,500 with money raised from evasion and avoidance after the job of deficit reduction is complete by 2017/18.
Nick Clegg say his plans involve “asking a little bit more from the wealthiest” to “help the many”. He criticises the Tories for trying to balance the books without any tax increases for the rich.
“The easy thing to do at election time is to promise tax cuts, the key thing is how do you pay for it.”
The Conservatives want to give tax cuts to the wealthiest by taking from the poorest. The Liberal Democrats, by contrast, plan to give further tax cuts to people on low and middle incomes by asking a little bit more from the wealthiest.