Day after day we read in the press that another tax dodge has been found and another loophole needs closing, and yet the truth is that when we read the story in detail we find that Lib Dem Minister, Danny Alexander is already in there closing the loophole.
The impact that Danny Alexander is having as he closes loophole after loophole is staggering and in the same way as we are capping how much people can claim in benefits, we are now putting a cap on the amount of tax breaks the wealthy can use to cut their income tax bills.
Tax relief exists for good reasons, to promote activities such as business investment and philanthropy, but it was unfair that this relief was used without limit to reduce income tax liabilities. It meant that some people with very high incomes in this country were playing the system to pay incredibly low rates of tax.
Thanks to the Lib Dems the government is now capping all of these currently uncapped reliefs. At the same time as the party has secured tax-cuts for millions of ordinary people we are closing tax loopholes for millionaires.
This is the Tycoon Tax that Nick Clegg has been talking about recently – ending the unfairness of people exploiting the complexity of Labour’s tax system to avoid paying their fair share. With all tax reliefs being capped the richest people will have to pay more.
The Daily Telegraph said this effectively meant that no-one would pay less than 25% in tax, whereas at the moment some wealthy tycoons pay 10% or less.