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| Tories 'to be responsible on tax' | Tories 'to be responsible on tax' |
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| Shadow chancellor George Osborne has insisted the Conservatives will put economic stability ahead of tax cuts. | Shadow chancellor George Osborne has insisted the Conservatives will put economic stability ahead of tax cuts. |
| The party's Tax Reform Commission has outlined a £21bn package of cuts as part of a simpler, flatter tax system. | The party's Tax Reform Commission has outlined a £21bn package of cuts as part of a simpler, flatter tax system. |
| Mr Osborne said he would adopt some of the ideas but said other changes - such as higher green taxes - would mean the overall tax take would not be cut. | Mr Osborne said he would adopt some of the ideas but said other changes - such as higher green taxes - would mean the overall tax take would not be cut. |
| The Lib Dems say the Tories are in a muddle, while Labour say tax cuts would be financed by cuts in public spending. | The Lib Dems say the Tories are in a muddle, while Labour say tax cuts would be financed by cuts in public spending. |
| TAX RECOMMENDATIONS Scrap the 10p starting tax rate Raise tax-free earning threshold from £5,035 to £7,185Abolish stamp duty on sharesReplace inheritance tax with capital gains tax on death. Not to be levied on family homesLower corporation tax rate | TAX RECOMMENDATIONS Scrap the 10p starting tax rate Raise tax-free earning threshold from £5,035 to £7,185Abolish stamp duty on sharesReplace inheritance tax with capital gains tax on death. Not to be levied on family homesLower corporation tax rate |
| The review was chaired by Conservative peer Lord Forsyth, who said the proposals, which are not binding on the party, were realistic and achievable over the course of a Parliament. | The review was chaired by Conservative peer Lord Forsyth, who said the proposals, which are not binding on the party, were realistic and achievable over the course of a Parliament. |
| At the launch of the report he said there was now "far too much" tax law and warned "reform will not be easy, it requires dedication and hard work, but the long-term competitiveness of our economy and our public services depend on it". | At the launch of the report he said there was now "far too much" tax law and warned "reform will not be easy, it requires dedication and hard work, but the long-term competitiveness of our economy and our public services depend on it". |
| Recommendations in the report, published on Thursday, include reducing the basic income tax rate from 22% to 20%. | Recommendations in the report, published on Thursday, include reducing the basic income tax rate from 22% to 20%. |
| It also recommends scrapping the 10p starting tax rate and raising tax-free earnings from £5,035 to £7,185 - which it says removes 2.5 million people from the tax system. | It also recommends scrapping the 10p starting tax rate and raising tax-free earnings from £5,035 to £7,185 - which it says removes 2.5 million people from the tax system. |
| 'Menu of options' | 'Menu of options' |
| The commission backs abolishing stamp duty on shares, cutting business taxes and replacing inheritance tax with a "capital gains tax on death" - which would not be levied on family homes. | The commission backs abolishing stamp duty on shares, cutting business taxes and replacing inheritance tax with a "capital gains tax on death" - which would not be levied on family homes. |
| The main corporation tax rate would also be lowered. | The main corporation tax rate would also be lowered. |
| The commission was set up to advise the Conservatives on tax policy, should they win power, but its recommendations are "far from official Tory policy", said BBC economics editor Evan Davis. | The commission was set up to advise the Conservatives on tax policy, should they win power, but its recommendations are "far from official Tory policy", said BBC economics editor Evan Davis. |
| These are tax cuts are unfair Ed BallsEconomic Secretary to Treasury Analysis: Back to the old row A new approach? | These are tax cuts are unfair Ed BallsEconomic Secretary to Treasury Analysis: Back to the old row A new approach? |
| The commission did not consider council tax, VAT, business rates or environmental taxes - favoured by Tory leader David Cameron, who has also said he will not promise tax cuts unless they can be paid for. | The commission did not consider council tax, VAT, business rates or environmental taxes - favoured by Tory leader David Cameron, who has also said he will not promise tax cuts unless they can be paid for. |
| Mr Osborne, at the launch in the City, said: "We will not be promising reduction in taxation at the election. Any changes in taxes will be revenue neutral." | Mr Osborne, at the launch in the City, said: "We will not be promising reduction in taxation at the election. Any changes in taxes will be revenue neutral." |
| He said environmental taxes on pollution and carbon emissions will be increased to pay for reducing the tax burden on families and workers: "I want to tax the bad, not the good." | He said environmental taxes on pollution and carbon emissions will be increased to pay for reducing the tax burden on families and workers: "I want to tax the bad, not the good." |
| The party was looking at green taxes which were "more progressive", including ways to make them "fall on more affluent people". | The party was looking at green taxes which were "more progressive", including ways to make them "fall on more affluent people". |
| TAX PLANS | |
| Full report of the Tax Reform Commission (2090 KB) | |
| Most computers will open PDF documents automatically, but you may need to download Adobe Acrobat Reader. | |
| Download the reader here | |
| Mr Osborne said the review had given him a "menu" of options, some of which would be accepted, some modified and some rejected. | Mr Osborne said the review had given him a "menu" of options, some of which would be accepted, some modified and some rejected. |
| He said that he was not going to write a Budget for 2009 in 2006, but added that the "framework for our tax policy has now been set". | He said that he was not going to write a Budget for 2009 in 2006, but added that the "framework for our tax policy has now been set". |
| He announced further Conservative studies into the proposals, including one into cutting stamp duty on shares and cutting business rates. | He announced further Conservative studies into the proposals, including one into cutting stamp duty on shares and cutting business rates. |
| 'A muddle' | 'A muddle' |
| Commission member, and former Vodafone chief Sir Christopher Gent, said the axing of stamp duty on shares would boost the value of British businesses, and therefore, boost the value of "millions of people's pensions". | Commission member, and former Vodafone chief Sir Christopher Gent, said the axing of stamp duty on shares would boost the value of British businesses, and therefore, boost the value of "millions of people's pensions". |
| However, for Labour, the economic secretary to the Treasury Ed Balls said the "huge" tax cuts would not help ordinary families and would leave a hole in public finance. | However, for Labour, the economic secretary to the Treasury Ed Balls said the "huge" tax cuts would not help ordinary families and would leave a hole in public finance. |
| "The tax cuts are unfair. The majority of them will go to the few," he told BBC News 24. | "The tax cuts are unfair. The majority of them will go to the few," he told BBC News 24. |
| HAVE YOUR SAY People are finding it harder to live as taxes go up. Of course it's time for tax cuts Wayne Morris, Port Talbot Send us your comments | HAVE YOUR SAY People are finding it harder to live as taxes go up. Of course it's time for tax cuts Wayne Morris, Port Talbot Send us your comments |
| "The problem is there is no indication here at all as to how it will be paid for," he said. "David Cameron has denied he would cut public spending. | "The problem is there is no indication here at all as to how it will be paid for," he said. "David Cameron has denied he would cut public spending. |
| "The hole in the finances that this would create is dangerous for the economy." | "The hole in the finances that this would create is dangerous for the economy." |
| He said to pay for the cuts, the Conservatives will either increase taxes elsewhere or commit to "big spending cuts", which could see a deterioration in health, education, policing and other areas. | He said to pay for the cuts, the Conservatives will either increase taxes elsewhere or commit to "big spending cuts", which could see a deterioration in health, education, policing and other areas. |
| Lib Dem leader Sir Menzies Campbell also criticised the plans. | Lib Dem leader Sir Menzies Campbell also criticised the plans. |
| "Tory tax plans are in a muddle," he said. | "Tory tax plans are in a muddle," he said. |
| "You can't produce plans for £21bn worth of tax cuts without saying how they would be paid for." | "You can't produce plans for £21bn worth of tax cuts without saying how they would be paid for." |