Liberal Democrat Conference - Tax Motion

12.00.00am UTC (GMT +0000) Tue 12th Sep 2006

At the Liberal Democrat Party Conference, Dr Evan Harris MP will be proposing an amendment to the party's tax motion proposing to retain a 50p tax rate - although on incomes over £150,000.

Dr Harris said:

"There is broad agreement that our tax package should be revenue neutral and I support the Tax Commission's proposals. But the package would be more progressive with a 50p top rate tax and our fairness message would be more easily communicated."

1) The Amendment that Dr Evan Harris MP will be proposing to the party's tax motion:

F28 Fairer, Simpler, Greener (Tax Reform Policy Paper)

Pararagh 2 first line

Delete 'without introducing a 50% tax rate income tax' and substitute

'in relation to income as well as wealth' by:

Add a new paragraph 2c

'Introducing a 50% marginal rate (combining Income Tax and 1% National Insurance Contributions) on earnings over £150,000 per year, and using the revenue to raise the starting threshold for income tax further towards our goal of £10,000 per year and taking 300,000 more people out of tax altogether.'

Paragraph 4a

After the words 'ability to pay' continue the sentence:

'with such local income tax to be capped at an income of £150,000 per year.'

Related Link:

The text of the full motion is available here.