TaxCorporate TaxLib Dems plan to tax wealthy, Clegg confirms

Lib Dems plan to tax wealthy, Clegg confirms

The deputy prime minister plans to cut the deficit through 'clamping down on tax evasion and tax avoidance; significant additional savings in Whitehall'

Lib Dems plan to tax wealthy, Clegg confirms

THE LIBERAL DEMOCRATS will raise taxes on high earners should they win the General Election in May, party leader Nick Clegg has pledged.

Speaking on the BBC’s Andrew Marr show, the deputy prime minister (pictured) said the plan to cut the deficit would involve “a mixture of the following components: clamping down on tax evasion and tax avoidance; significant additional savings in Whitehall”.

He said: “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.”

But while that policy may prove popular among the UK’s voters, a similar policy put forward by US president Barack Obama has been met with fierce criticism from the Republicans.

He plans to propose a series of measures designed to bring in $300bn (£197bn) to help fund extra middle-class-friendly tax credits.

Part of Obama’s plan includes raising the top rate of tax on capital gains to 28%, up from 23.8%, while loophole allowing heirs of large estates to avoid paying the full rate will be closed.

Meanwhile, the US’s largest finance firms – those with more than $50bn in assets – face a new fee, but with congress deeply riven on fiscal policy, it is likely to be strongly opposed.

Related Articles

Markets expected to respond positively to US policy changes

Corporate Tax Markets expected to respond positively to US policy changes

5m Alia Shoaib, Reporter
UK has ‘vital role to play’ in beating tax evasion, declares Panama Papers whistleblower

Corporate Tax UK has ‘vital role to play’ in beating tax evasion, declares Panama Papers whistleblower

1y Fraser Simpson, Reporter
An 'incomprehensible and contradictory' Budget

Accounting Firms An 'incomprehensible and contradictory' Budget

2y Richard Crump, Writer
Knight's suitability as OTS chief questioned by MPs

Corporate Tax Knight's suitability as OTS chief questioned by MPs

2y Fraser Simpson, Reporter
Macpherson to leave Treasury after 10 years in Permanent Secretary role

Corporate Tax Macpherson to leave Treasury after 10 years in Permanent Secretary role

2y Chris Warmoll, Writer
MPs launch inquiry into UK corporate tax system

Corporate Tax MPs launch inquiry into UK corporate tax system

2y Fraser Simpson, Reporter
Treasury Select Committee to lead review of UK tax system

Corporate Tax Treasury Select Committee to lead review of UK tax system

2y Calum Fuller, Reporter
Parliament to debate digital tax accounts this month

Administration Parliament to debate digital tax accounts this month

2y Calum Fuller, Reporter