50p rate still needed to improve fairness of tax plans

12.00.00am UTC (GMT +0000) Fri 11th Aug 2006

Commenting on the report of the Tax Commission, published by the Liberal Democrats today, Oxford West and Abingdon MP Dr Evan Harris said:

"While these are extremely good ideas for sustainability and fairness, I believe we should retain the policy of an income tax top-rate of 50p, on earnings over £150,000, in order to make the package more progressive and more obviously so. The revenue from that tax change can be used to help some of the poorest tax-payers more."

"While these proposals do raise significant amounts of revenue from high levels of wealth, this is less true of high incomes and it is only fair and balanced to do even more to help those on low incomes by asking very high earners to pay a little more in income tax."

"I will be calling for the Conference in September to include the 50p top tax rate when this is debated. While it is a small change in the overall package, it would be more fair, more effective and more popular."

END

Notes to editors

1) Dr Evan Harris is MP for Oxford West and Abingdon, and a member of the Party's Federal Policy Committee, under whose auspices the Tax Commission produced its paper.

2) At the last election the Lib Dems proposed a new income tax top rate of 50p on incomes over £100,000 to help fund some spending commitments. Conference is expected debate an amendment, supported by Dr Harris and many others in the party, to retain a 50p top-rate tax - but this time on income over £150,000 and to be used to reduce taxes on the less well-off rather than for public spending.

3) All 50p top-rate tax policies under consideration have buffering Local Income Tax to prevent a combined marginal rate of more than 50p.