Tuesday, 8 March 2011

Almost 10,000 people taken out of income tax by Lib Dems

Almost 10,000 people in Cornwall will stop paying income tax on April 1st thanks to the Liberal Democrats. And 200,000 more local residents will see their tax bill cut by up to £200 a year.

The tax cuts come as part of the Lib Dem commitment to raise the income tax threshold to £10,000 per year. In the first tranche, the tax-free limit was raised to £7,000 in last year's budget and the Party is committed to making sure that no-one earning less than £10k per year pays any income tax by 2015.

This change will be particularly beneficial to areas like North Cornwall where there is low average pay. For someone working part-time and on less than £7k per year, an extra £200 can make a lot of difference. It's not the whole answer to ensuring people are better off but it's a great step in the right direction.

The exact figures, based on Government calculations, are that 9,800 Cornish residents will be taken out of income tax altogether and 194,200 will see a reduction of up to £200 per year.

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