Conservative Newspaper, ‘The Monolith’ has today accused the Libertarians of wanting to raise taxes by £300 per household. Thanks to the Editors of the Telegraph, I am pleased to be able to rebuke these false claims. It is important to note that the Monolith did not question the Conservative budgetary blackhole that will be left once the one-off revenue from their proposed privatisation plans are no longer available. Indeed, the Monolith did not even pick up on the uncosted tax pledge from the Conservatives that their candidates are strongly boasting about as campaigning continues in this election.
The notion that families will pay higher taxes under the Libertarians is categorically false.
The Monolith claimed that the LPUK planned £98bn in spending cuts and in that regard, they are correct, as the Libertarians believe that Government funding is bloated in a great many departments. However, what the Monolith didn’t tell you was the total sum of tax cuts that we have planned. The Land Value Tax rise will bring £23.38 billion. Our income tax cuts £42.79 billion. Once you add VAT and excise duties you get £75.99 billion which is greater than the planned LVT and Carbon tax increase. Once you examine the cost of tax cuts it is bizarre to see where the Monloith’s figures come from as their sums simply do not add up.
They’ve purposefully framed misleading figures to make it look like the tax burden will rise when this could not be further from the truth.
The average household income in the UK is approximately £34,519. Under the current tax regime they would pay £2,174.32 in tax. Under the LPUK’s plans, including lifting the personal allowance threshold by 2% in line with inflation, they would only pay £1,580.51. This is a reduction of £593.81. From figures provided by the ONS the average household will spend £2,514.31 on VAT with a rate of 17.5%. Under our plans that becomes £2,155.13. This is a reduction of £359.19. Having used the same methodology for alcohol and tobacco duty the average household will spend £310.22 less.
The Libertarians have always been upfront and honest about wanting to raise LVT, not only is it it right that we ensure wealthy landowners pay their fair share,it is an economically efficient tax and is not distortive, unlike others.
Given the overall annual rental value of land is £184 billion and there are 12 regions, it would be a fair assumption to take the third most expensive region which has an average rental value of £7,645 in the South West. ( The total average rental value here is £19 billion which is higher than the regional average of £16.67 billion so I am being very generous here). If we take this figure and take 9% of it which is the proposed tax rise we get an increase of £688.05.
Overall the average household is £575.15 better off under our plans. This is on a very generous LVT figure. If you take a considerable amount, estimated to be around half of families who do not own a home, and those who have properties further down the property ladder. In areas outside of the South England the cost of LVT will fall quite a bit providing a sizeable benefit. I am sure Libertarian candidates will make this clear as we seek to make dents into the Labour and Tory seats that are not in the South. Our plans are grounded in sound economics and will benefit the average household contrary to Monolith misleading headlines.
We have to adopt a practical and economically focused approach to this election, and that is what the Libertarian Party is doing.
Firmly, we understand that the money people earn is better off in their pockets – not the coffers of Government. This is why we are reducing taxation, and insisting that the Government spends the people’s money more responsibly. The choice is clear, with the Tories you get short term boosts to the public purse, with no long term economic plan in play. With Labour you get hundreds of billions of pounds of borrowing and taxation. With the Libertarians, you get an unleashed economy, with lower taxes.
That is why our message is clear, join us and start to take your own Footsteps to Freedom.
*The figures for VAT and excise duties were derived by taking an average by the 2nd bottom quintile and 3rd quintile in Table 2 of The Effects of Taxes and Benefits on Household Income, UK, 2018/19 by the ONS. They were then applied for MHOC figures.
This article was written by the Leader of The Libertarian Party United Kingdom, /u/friedmanite19