Sunday Herald Holyrood Hustings This week ... Taxation

Our call to keep income tax at UK levels is based on two key principles. Firstly, we believe it is good for Scottish jobs and the Scottish economy. If we get a reputation as the highest taxed part of the UK, then investment and jobs than could have come here may flow elsewhere. We need to stay competitive in order to keep the economy recovery going.

And secondly, we simply don't think it is fair. More and more families are getting dragged into higher rate tax bands that were never intended for them – and it is only right that we address that here in Scotland.

This income tax policy is our top priority. It has spending consequences - which is why we have decided not to support the SNP's policy for a 50% cut in Air Passenger Duty. When airports are booming, and when spending is limited, we prefer to spend money keeping income tax low, not giving a subsidy to the aviation industry.

These are all difficult choices – but then that is why we supported taxes being devolved to Holyrood; to get away from the politics of grievance, and to start a new politics of accountability and responsibility.

Danny McGregor, RISE economic spokesperson

Our capacity to raise income is being undermined and material inequality is increasing.

There is a widespread lack of trust in our public institutions. Few were surprised when news of David Cameron’s involvement in the Panama Papers broke.

Not only have the mechanisms for avoiding tax become more entrenched, formal tax rates for the richest have been in steady decline.

This intentional reduction in the tax take, known as 'starving the beast', strips fund from public services so that they can eventually be eliminated or sold-off to private companies. After all, if the state cannot raise the necessary income, who better to save us than the private sector?

The stark reduction in HMRC staff is part of the project of intentionally undermining our ability to tax the wealthy effectively.

In response, we should establish a new anti-tax avoidance squad charged with the task of clamping down on elite tax avoidance.

We should reaffirm progressive taxation as beneficial to society as a whole. This will require the courage to challenge neo-liberal myths about job creation and capital flight. RISE proposes a 60 per cent top rate of tax on those earning upward of £150,000 per year and a new tax band, levied at 45 per cent, for those earning between £50,000 and £150,000 per year. These reforms will generate significant additional revenue for the Scottish Government - up to £620m annually, in fact.

Replacing the Council Tax with the income-based Scottish Service Tax will cut local government taxes for 70 per cent of Scots and help arrest the erosion of our local services by Tory-imposed austerity.

Willie Rennie, Scottish LibDem Leader

Liberal Democrats have set out our stall clearly on tax. If we want Scottish education to be the best again, then we need to invest. We will use the tax powers of the Scottish Parliament to have a transformational effect on Scottish education.

Our penny for education policy will see income tax rise by 1p across all tax bands and raise a whopping half a billion pounds to give children the best start in life. It would pay for an expansion of early education and childcare, more support in schools and help repair our colleges.

Raising tax is never an easy decision. But it is the right thing to do. Scotland used to have one of the best education systems in the world. Now it is only average. That is not good enough and that is why we need this investment.

Increases in the personal tax allowance that Liberal Democrats championed in government mean that under our plans, Scots earning less than £21,500 would pay less income tax next year compared to this year. This will protect people at the bottom while guaranteeing that we raise the money our education system needs.

The independent Institute for Public Policy Research have confirmed that our plan will raise crucial investment, and it is progressive, with the richest paying thirty times more than Scots on average incomes.

The SNP are timid and frozen to the spot on tax. They have just taken George Osborne's tax policies straight off the shelf. Liberal Democrats will take the urgent steps required to make Scotland the best again.

David Coburn, Ukip Scotland leader

UKIP’s approach to taxation revolves around restoring incentives for workers and entrepreneurs.

UKIP will oppose any suggestions that will result in income tax being higher than the rest of the UK. Scotland charging a higher rate than the rest of the UK will be unfair on aspirational Scots and lead to a flight of capital south taking jobs and opportunities with it. The long term aspiration of a UKIP government will be to create an income tax structure of a basic rate of 20 per cent, an intermediate rate of 30 per cent, and a top rate of 40 per cent meaning income taxes will be flatter and lower.

Large corporations should pay their fair share of tax. The cosy agreements between multi-national conglomerates and governments to pay as little tax as possible are grossly unfair on ordinary people. This is made possible by the EU corporatist scam that allows corporations to pay tax in whichever EU member state they choose. A UKIP government in Scotland would work closely with the UK government in identifying companies that are not paying their share of tax.

Business rates as a tax are a great burden on small and medium size businesses where they represent a disproportionately high fixed cost. Having business rates disproportionately high creates an unnecessary barrier for businesses who want to set up in Scotland. A UKIP government in Scotland would lower business rates allowing companies to reinvest money back into growing their business and creating jobs.

Jackie Baillie, Labour's Public Services and wealth creation spokesperson

Tax has been the defining issue of this election campaign, with the debate rightly dominated by how we use the new powers. With the revelations about the Panama papers still in the headlines the question about whether the richest are paying their fair share is more pertinent than ever.

It is wrong that tax seems optional for the richest but compulsory for the rest of us and it leaves a sour taste in the mouth that this is happening whilst we see continued cuts to public services like our schools. This week the independent experts at the Institute for Public Policy Research analysed the tax proposals of all the parties and concluded that Labour will raise the most revenue to stop the cuts.

We would set the Scottish Rate of income tax 1p higher than George Osborne and reverse the tax cut for the top 1% by introducing a 50p top rate for everyone earning over £150,000 a year. Other parties have refused to back us on taxing the rich, which is completely out of step with the public mood. When we have the chance to stop cuts to public services and invest in education we should.

At a time of austerity the richest should be paying their fair share so we can invest in the future of our country. Faced with the choice between using the powers of the Scottish Parliament to invest in the economy or carrying on with hundreds of millions of pounds of cuts to schools and local services, Labour would use the powers to stop the cuts

Patrick Harvie, Co-convenor of the Scottish Greens, and finance and economy spokesperson

As Holyrood finally gains the power to set truly progressive income tax, the Scottish people have a chance to make a bold statement about the distinctive way we value and fund public services.

Instead of simply raising the basic rate, the Scottish Greens propose to split it and raise less tax from lower incomes. Under our plan anyone earning less than £26,500 will keep more of their pay, while those on high incomes such as MSPs would pay more.

Tax policy certainly needs to raise income for much-needed public services and investment in the future. But it must also narrow the gulf in wealth and income between the richest and the rest.

Greens took part in the Commission on Local Taxation which recommended scrapping the unfair Council Tax, and we’ll replace it with a modern, fair property tax under which most households would pay less. We’ll also put a levy on derelict land, which is often held by speculative investors. Our plans would raise over £800 million – from those who can afford it – to protect public services.

A strong group of Green MSPs in Holyrood will reflect the Scottish sense of fairness and push the Scottish Government to be bolder.

John Swinney, Deputy First Minister and SNP Finance Secretary

This election is the first since devolution where Holyrood will have the responsibility to set income tax rates and bands independently of the UK chancellor.

The SNP’s approach to taxation is clear. We believe it should be fair and balanced – raising revenue to fund our public services without putting undue pressure on families who can ill-afford another rising bill.

George Osborne’s plans, backed by Ruth Davidson, to give a tax cut to high earners is not fair. And plans by Labour and the Lib Dems to raise the basic rate of income tax – hitting up to half a million pensioners and others on low-incomes – is not balanced, as the least well-off should not be made to carry the burden of Tory austerity.

Instead, we’ll keep the basic rate of income tax at 20p and raise the Personal Allowance to £12,500 by 2020, meaning those on low-incomes will be better off.

We plan to take the same approach to local tax, with a reformed council tax seeing those in the most expensive properties paying slightly more. The extra £100m this will raise each year will be invested directly in our schools.

We will also extend the Council Tax Reduction Scheme to low income households with children, saving 77,000 families an average of £173 per year.

In total, our tax plans will raise around £2 billion extra over the next parliament. That is a progressive, sensible approach that allows investment in public services, while protecting household budgets and ensuring that the burden of taxation is shared more fairly.