Title: Taxation – The Liberal Party
Headings: The Tax Credit System
Taxation
The Tax Credit System
Taxes and Tax Rates
Inheritance Tax and Universal Inheritance
Other Measures

Content: The Liberal Party, therefore, noting that the average wealth of every adult and child in the UK at the end of 2002, according to the Office of National Statistics, was £85,000, calls for a £10,000 British Universal Inheritance to be paid to all UK – born citizens at the age of 25, to be clawed back by a marginal 10 per cent tax from a further £90,000 of capital gifts and inheritance received from other sources, thereby giving a net personal tax free lifetime allowance, above which progressive inheritance tax rates above 10 percent would start to apply. Capitalist democracies already have universal suffrage – votes for all. Universal Inheritance – capital for all- is also required, to spread more widely the private ownership of wealth in each new generation. Other Measures
VAT, like most taxes on spending, tends to be regressive. The Liberal Party therefore finds merit in a higher rate of VAT for luxury items and extension of the zero rate. The Liberal Party believes that the community should enjoy the benefits of publicly-created land values and, to ensure this, supports the Taxation of Land Values. Liberals also believe that those who have a conscientious objection to the use of their taxes for military purposes should have the right to register their objection and to divert that portion of their taxes into a non-military security fund. We believe that tax incentives have a role to play in the promotion of sound environmental policies by businesses. We suggest that tax incentives could be offered to companies which use recycled materials and special duties added to goods produced in ways which are environmentally damaging. Liberal Party proposals include: