Liberal Democrats to tax the wealthy

If the Liberal Democrats win the next General Election in May this year, they will be raising tax on higher earners.

This pledge has recently been announced by Nick Clegg on the Andrew Marr show, stating that the raise in taxes would be part of their plan to reduce the deficit.

Mr. Clegg said;

"[Liberal Democrats’ plans would involve] a mixture of the following components: clamping down on tax evasion and tax avoidance; significant additional savings in Whitehall".

"There need to be some additional savings but not nearly on the totally implausible scale the Conservatives have said in the welfare budget and there will need to be some tax increases as well which fall on the wealthiest in society."

The Liberal Democrats plan to recoup £197bn via a number of various measures to help fund the seemingly ever-growing need for tax credits, popular with both the middle-class and any working families that find themselves struggling to make ends meet.

US tax plans

Although this policy may be popular with the UK masses, over in the US, a similar proposal by President Barack Obama has been met with criticism from opponents.

Obama's plan includes changing the rate of capital gains tax at the top section to 28% from 23.8%. He also wants to close a loophole in the law that allows heirs of large estates to get away with paying the full rate.

In addition, the US's biggest finance companies, with more than $50bn in assets, also face new charges; however, congress is deeply torn on fiscal policy, so this is likely to be strongly opposed.

Your tax affairs

For advice on your own tax affairs, we are here to help you make the most of your money. In fact, we are confident that we can save you money – for a free consultation, call 01902 837 408 or contact us today.