The Coalition Government should “accelerate” Liberal Democrat plans to increase personal tax allowances to help the economy during the euro crisis, business leaders have warned the Chancellor in a letter to the Telegraph.
The proposal to increase the basic tax threshold to £ 10,000 is one of many Liberal Democrat manifesto committments that were central to the coaltion agreement, and provides real help for low paid working families facing real difficulty in the current economic climate.
Business leaders have also called for the removal of the 50p tax rate in order to attract entrepreneurs to the British Economy.
I think that there are other more pressing calls for tax reductions, such as targetting a 15% reduction to tax on maintenance and repair of buildings to give a real boost to British construction and manufacturing.
That being said it is important that we do not tax for the sake of taxing, and I am convinced that the top tax rate should be dropped back to 40p at the earliest opportunity.