THE RICH should pay more tax on their assets, allowing low-paid workers to keep more of their earnings, Nick Clegg said yesterday.
“We are going to stick to our guns” on the proposed mansion tax, he said, arguing that more tax should fall on wealth instead of income.
The Deputy Prime Minister urged the chancellor to accelerate the existing plan to raise the threshold on income tax to £10,000 which is already set to be met by 2015, as well as stating he wants the threshold raised further in future, to take all workers on the minimum wage out of income tax altogether.
Paying for this will not be easy, he acknowledged, suggesting the tax on mansions could cover part of the cost.
The Treasury said any tax changes will be announced in the Budget.