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Page last updated at 14:43 GMT, Tuesday, 11 November 2008
Politicans go to war over tax

By Dave Howard
Newsbeat politics reporter

How do you like the idea of taking home more money at the end of the month? One of the biggest drains on our wages - tax - may soon be cut. It's still early days, but Prime Minister Gordon Brown, the Conservatives and the Lib Dems - all think it could be a good way to ease the credit crunch.

Wallet and money
Gordon Brown thinks tax cuts could stimulate the economy

PM Gordon Brown's been hinting at tax cuts for a while now. He says he's watching other countries where cuts have already gone ahead -and that he'll do "everything" he can to help the economy here.

He added: "One way you can do that is by putting more money into the economy, by tax cuts."

He's also suggested plans to increase the cost of some tax discs for cars could be dropped.

It's a new direction for Gordon Brown's Labour party, who don't normally go in for tax-cutting. It's got the parties competing to come up with the most eye-catching plans.

On Tuesday, Conservative Leader David Cameron set out his ideas, saying "the choice opening up is a tax cut from the Conservatives and a tax con from our Prime Minister."

He wants to see tax "breaks" for businesses that take on unemployed workers. He says it's one way to get people out of the dole queue and back into jobs.

The Liberal Democrats say they started talking about helping out poorer people with tax breaks ages ago.

It's the government that matters though - and it's still not clear what taxes they plan to cut, or how. They're expected to make a more detailed announcement sometime in the next couple of weeks.

Any change they make might not benefit everyone. For instance, tax breaks for businesses could save jobs but they wouldn't mean more cash in your pocket.

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