Tax breaks for families ‘would boost economy’

TAX breaks for married couples are urgently needed to help mend Britain’s broken society, a Cabinet minister will say today.

Iain Duncan Smith will urge David Cameron to fulfill the promise of an income tax break for couples Iain Duncan Smith will urge David Cameron to fulfill the promise of an income tax break for couples

Iain Duncan Smith will urge David Cameron to deliver on the Tory promise of an income tax break for couples, potentially giving a financial boost to millions of middle-income households.

In a speech to mark Marriage Week, he will say: “There are few more powerful tools for promoting stability than the institution of marriage.”

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The Work and Pensions Secretary will also attack the benefit system left by Labour for penalising and, in some cases, criminalising couples who want to stay together while rewarding those that split up.

His comments risk provoking a rift with the Treasury, which is concerned about the cost of cutting income tax while facing a record deficit.

Mr Duncan Smith will use his speech to remind the Prime Minister of his election pledge to “recognise marriage in the tax system”.

While no figure was mentioned, sources suggested such a tax break could be worth about £500 a year to a married couple.

In contrast, the financial cost to the nation of family breakdown is estimated at up to £40billion a year from educational failure, drug and alcohol addiction, behavioural problems, deprivation and crime.

Former Tory leader Mr Duncan Smith will say: “As the Prime Minister has argued, there is something special about the commitment which marriage involves – the willingness to openly and actively plan for the future – which promotes stability in other aspects of the relationship and family life.

“This stability can be key to ensuring that children are able to achieve a better education, and go on to become better off parents.”

He will single out the penalty faced by some couples in the tax credit and benefit system, arguing: “This crazy system can have the effect of pushing the most disadvantaged in society into the most destructive behaviour – namely criminal activity – as they attempt to get around the penalty by committing living-together fraud.”

Mr Duncan Smith will admit that previous governments failed to support marriage because of fears of politically correct criticism.

“The prevailing view was that to extol the virtues of this most fundamental institution somehow meant you were going to stigmatise those who were not married,” he will say.

“I’m pleased to say that I believe the tide is beginning to turn.”

Charlotte Linacre, of the TaxPayers’ Alliance, said: “You shouldn’t be hit harder just because you decide to get married.

“We need a tax system that is fair for families.”

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