Labour MPs oppose Liberal Democrat proposal for fair taxes for the rich

3.00.00pm UTC (GMT +0000) Tue 17th Jul 2007

A Liberal Democrat proposal for fair taxation of the wealthy was voted down by Labour MPs in the House of Commons yesterday, as the Tories sat on their hands. The motion was proposed in an opposition day debate led by Shadow Chancellor Vince Cable. Dr Cable called for the closure of loopholes in capital gains tax which allow the very wealthy to pay less tax than their cleaners. He warned that middle-income families were disproportionately burdened by stamp duty and inheritance tax thresholds.

Vince Cable, Liberal Democrat Shadow Chancellor said "We believe that within the current level of taxation it would be possible to have a system that is fairer, simpler and greener. We are a relatively unequal country and I think what one can reasonably ask of the government is that they don't pursue policies which make these disparities worse."