Lib Dems say clamp down on tax havens

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The UK's Lib Dems are, like Labour, suggesting tax cuts for fiscal stimulus. I've already explained this is not a route down which I would travel, but what they say is interesting :

The party would meet the £18bn cost of this by cutting top-rate tax relief on pension contributions; taxing capital gains at the same rate as income; imposing green taxes; and tackling corporate tax avoidance.

Clegg will say that these are real tax cuts, "big, permanent and fair", that would benefit those who need help.

He will also call for the government to clamp down on tax havens.

"There's a particular UK responsibility here, since half the world's significant tax havens are under British sovereignty," he will say.

"I know tighter regulation of offshore companies and banks will be painful for some small Commonwealth states and British dependencies. But it has to happen.

"Up to £40bn is lost every year in the UK alone through tax avoidance, much of it through offshore havens. That's money that should be recycled into tax cuts for ordinary families."

There are strong hints of the impact of the arguments in this blog in there. I can live with that.