Lib Dem tax policy
Today's Observer reports: Radical proposals promising a 2p cut in the basic rate of income tax, funded by a green levy on air flights, and tougher tax rules for the wealthy will be unveiled by the Liberal Democrats this week. Assuming that this represents the verdict of the party's tax commission rather than an attempt to pre-empt it, my initial reaction is favourable. My worry about environmental taxes is always that they may work too well. If people change their behaviour because of the new taxes, won't that reduce the amount they bring in? How would we fund our ...