Taxation
Taxation
Taxation plays a key part in ensuring that our economy can recover from the ruin of the last parliament and return to its former glory. The Conservative Party pledges to cut Income Tax, Value Added Tax and Capital Gains Tax to ensure that people get to keep more of the money they earn each year. A Conservative government would also clamp down on tax evasion to ensure that everyone pays their fair share in taxes. We will promote the Extractive Industries Transparency Initiative to ensure that international corporations are paying their fair share in taxes. The Conservative Party promotes a low tax, high wage economy in which those who work the hardest reap the most rewards. We will champion this idea if elected into government.
Balancing the Budget
The Conservative Party will always support a balanced budget. A Conservative government will promise to make sure that any government budget we produce will be balanced so that we don’t put our nation’s finances in jeopardy and our children don’t have to pay off the debts of their parents. The left wing cannot be trusted with the nation’s finances as they left a £10BN black hole in their most recent budget.
Cutting Income Tax
The Conservative Party has always believed that is should pay to work, which is why we would raise the Income Tax threshold to £14,000. We will also reduce Income Tax rates implemented under the last government. Under a Conservative government, you would pay 20% on income earned between £14,000-£40,000, 38% on any income earned between £40,000-£175,000 and above earnings above £175,000 you will pay 45% income tax.
VAT
As a party who wants to see a low tax, low welfare, high wage economy we want to see to see taxes as low as possible. This is why we support lowering VAT from its previous rate of 25% which was implemented under a previous government. Our VAT rate would be 20%
Capital Gains Tax
Another tax the Conservative Party would lower if we were in Government would be Capital Gains Tax. The lower rate would go down to 15% from 18% and the higher tax rate would go down to 27.5% from 28%.
Expanding the Carbon Tax
As a party we want to incentivize businesses to emit as few emissions as possible and we believe levying taxes on greenhouse gases will do this best. Hence axes will be levied as follows. 5p per KG on Carbon, 7p per KG for Methane, 10p per KG for Nitrous Oxide, 15p per KG for Perfluoromethane and 25p per KG for Sulphur Hexafluoride.
Tax Evasion
Tax Evasion and Avoidance in the UK loses the Treasury around £9bn in revenue each year. In order to combat this and ensure that people pay their fair share in taxes, we will pledge £1bn each year on tackling this problem. It is estimated that this would raise an extra £7bn for the Treasury each year by the end of our term in government. We will also be prosecuting more people who break Tax Evasion laws. With the £1bn we will be allocating we will hire an additional 200 criminal investigators to increase the number of people who are prosecuted for Tax Evasion. In government we would champion the reduction of Tax Evasion and Avoidance and ensure that every person in our great nation pays their fair share in taxes to ensure that we can properly fund our public services and reduce the deficit.
Extractive Industries Transparancy Initiative
We will lead international efforts to ensure global companies pay their fair share in tax, as David Cameron did at the G8 Summit in Northern Ireland in 2013, which secured significant international progress on fairer tax rules and full transparency over who really owns companies. We will do this by encouraging countries to join Extractive Industries Transparency Initiative. We will review the implementation of the new international country-‐by-‐country tax reporting rules and consider the case for making this information publicly available on a multilateral basis. We will ensure developing countries have full access to global automatic tax information exchange systems and continue to build the capacity of tax authorities in developing countries.
Reforming Non-doms
As a party we fight for making sure everyone pays their fair share in taxes. This is why we would reform the non-domicile tax status. We would change the policy so there is the presumption of domicile after 5 years unless stated otherwise. This way the poorer non-doms won't be hurt by the very high charge because both poor and rich non-doms are beneficial to our economy so it is important this policy works for everyone.
