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| Tory group urges £21bn tax cuts | Tory group urges £21bn tax cuts |
| (10 minutes later) | |
| The commission set up to advise the Conservative Party on tax policy is to recommend cuts worth £21bn. | The commission set up to advise the Conservative Party on tax policy is to recommend cuts worth £21bn. |
| It wants to reduce the basic income tax rate from 22% to 20% and remove 2.5 million low earners from paying tax. | It wants to reduce the basic income tax rate from 22% to 20% and remove 2.5 million low earners from paying tax. |
| The Tax Reform Commission also backs abolishing stamp duty on shares and cutting business taxes in its report, due to be published on Thursday. | The Tax Reform Commission also backs abolishing stamp duty on shares and cutting business taxes in its report, due to be published on Thursday. |
| Shadow Chancellor George Osborne said the party would accept some recommendations and reject others. | Shadow Chancellor George Osborne said the party would accept some recommendations and reject others. |
| Tory leader David Cameron has said that economic stability - not tax cuts - should be the main priority. | Tory leader David Cameron has said that economic stability - not tax cuts - should be the main priority. |
| Some we will accept, some we will modify, and others we may reject George OsborneShadow chancellor | Some we will accept, some we will modify, and others we may reject George OsborneShadow chancellor |
| The commission recommends abolishing inheritance tax and replacing it with a "capital gains tax on death", which would not be levied on family homes. | The commission recommends abolishing inheritance tax and replacing it with a "capital gains tax on death", which would not be levied on family homes. |
| The main corporation tax rate would be lower and more "competitive internationally", the report adds. | The main corporation tax rate would be lower and more "competitive internationally", the report adds. |
| Meanwhile, the earnings threshold, below which people do not pay income tax, would increase from £5,035 to £7,185. | Meanwhile, the earnings threshold, below which people do not pay income tax, would increase from £5,035 to £7,185. |
| Mr Osborne said: "The commission has given us a menu of options that merit serious consideration. Some we will accept, some we will modify, and others we may reject. | Mr Osborne said: "The commission has given us a menu of options that merit serious consideration. Some we will accept, some we will modify, and others we may reject. |
| "But the framework of our tax policy is now set." | "But the framework of our tax policy is now set." |
| Ed Balls, the economic secretary to the Treasury, said the proposed tax cuts would not help ordinary families and would leave a black hole in the public finances. | Ed Balls, the economic secretary to the Treasury, said the proposed tax cuts would not help ordinary families and would leave a black hole in the public finances. |
| The hole in the finances that this would create is dangerous for the economy Ed Ballseconomic secretary to the Treasury | The hole in the finances that this would create is dangerous for the economy Ed Ballseconomic secretary to the Treasury |
| He added: "The scale of the tax cuts is huge. The problem is there is no indication here at all as to how it will be paid for. | He added: "The scale of the tax cuts is huge. The problem is there is no indication here at all as to how it will be paid for. |
| "David Cameron has denied he would cut public spending. The hole in the finances that this would create is dangerous for the economy." | "David Cameron has denied he would cut public spending. The hole in the finances that this would create is dangerous for the economy." |
| The commission has not looked at council tax or VAT, the report, obtained by the BBC, makes clear. | The commission has not looked at council tax or VAT, the report, obtained by the BBC, makes clear. |
| It says: "Tax reform can work. The economies of other countries have benefited greatly from similar programmes of reform." | It says: "Tax reform can work. The economies of other countries have benefited greatly from similar programmes of reform." |
| HAVE YOUR SAY I'd rather see our taxes being spent wisely than pay lower taxes Mustafa Yorumcu, London href="http://newsforums.bbc.co.uk/nol/thread.jspa?threadID=4342&edition=2&ttl=20061018173831" class="">Send us your comments There had been reports that the commission, chaired by Lord Forsyth, had come under pressure from the shadow chancellor to water down its proposals. | |
| BBC economics editor Evan Davis said the Conservative Party's tax policy was "getting some shape". | BBC economics editor Evan Davis said the Conservative Party's tax policy was "getting some shape". |
| But Mr Cameron had to work out how to combine these with higher spending plans for public services, he added. | But Mr Cameron had to work out how to combine these with higher spending plans for public services, he added. |