<p><br /> The Liberal Democrats have pledged a "radical overhaul" of the tax system which would put £700 in the pockets of millions of taxpayers.<br /> </p><p><br /> Party leader Nick Clegg set out "the biggest tax switch in generations", proposing to cut income tax bills for those on low and middle incomes.<br /> </p><p><br /> He said only his party would rebalance the tax system and "make it fair once and for all".<br /> </p><p><br /> Mr Clegg said taxation under Labour was "complex, unwieldy and most of all unfair" and this had to change.<br /> </p><p><br /> Top earners would pay their "fair share" to put money in the pockets of those who needed it most, Mr Clegg said.<br /> </p><p><br /> Liberal Democrats would raise the income tax threshold to £10,000, cutting the average working age person's tax bill by £700 and cutting pensioners' income tax bills by £100. The £17 billion policy would mean 3.6 million people on low incomes would no longer have to pay income tax, the party claims.<br /> </p>
