But the dividends are received by investors as if they have already paid basic rate income tax (the corporation tax rate is about the same as the basic income tax rate).
Mrs Williams said that if Wales were to be given income tax varying powers, the Welsh Liberal Democrats would want to lower the basic income tax rate to make the tax system fairer and continue Lloyd George's progressive and Liberal principles.
But because the profit has been taxed already at the company level those dividends are now received tax free by basic rate income tax payers.
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Allied to a raised basic income tax threshold and better-than-feared employment figures, Scottish households have 1.3% more disposable income this year.
The last Liberal Democrat manifesto included a plan to increase basic income tax by one pence, with the money allocated to education.
SNP's plans to put 1p on the basic income-tax rate paid by Scots, in effect annulling the tax cut promised by Mr Brown for next year.
Look, say the pundits, at the net effect of his new lower income-tax band (starting next month), the cut in the basic rate of income tax from 23% to 22%, the changes to national insurance, the abolition of the married couples' tax allowance and the mortgage-interest allowance (all starting a year from now), the new child tax credit (from 2001), etc.
Mr Salmond's big test will come in 2010, when he hopes to abolish council tax completely and replace it with a local income tax levied at a flat rate of 3p in each pound of basic-rate national income tax due.
The Conservatives' proposal essentially removes this limit and extends the tax privilege to all lower-rate and basic-rate income-tax payers who receive interest on their deposits.
But to the recipient the dividend arrives as if it has already had basic rate income tax paid.
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It would cut class sizes, provide more teachers and scrap students' tuition fees by putting a penny on the basic rate of income tax.
He may have cut 1p off the basic rate of Income Tax, but overall Labour have increased taxes by the equivalent of 8p in the Pound.
The Lib Dems, who want to lower the basic rate of income tax, said the plans would only result in a marginal saving for people on average incomes.
It had already committed itself to cutting 4 pence off the basic rate of income tax to be paid for by taxing the rich and clamping down on avoidance scams.
Mr Campbell, a former mayor of Vancouver, wants to stimulate the economy by cutting the province's basic rate of income tax to the lowest in Canada, easing regulation of business, and relaxing employment law.
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The Lib Dems have also ditched any policies that might put off potential supporters, such as raising the basic rate of income tax, and they have stopped banging on about things that do not stir the popular imagination, such as proportional representation.
Even if such a wording were possible (which it is not, given the nature of Britain's constitution), Mr Dewar still has problems with writing the rules by which the parliament can use its intended power to vary basic-rate income tax by up to 3p.
There are probably two budgets left before the next general election: two one-penny cuts in the basic rate of income tax would allow Mr Brown to go into the election promising a rate of 20p in the pound if Labour is re-elected and dare the Tories to reverse it.
The conference also urged the executive to support the Liberal Democrat policy to add a penny onto the basic rate of income tax, provide teaching facilities in Gaelic and other minority languages where there is demand, and ensure that class sizes are reduced across the whole age range of pupils.
And with Nationalist expectations that they would win far more seats than they did having been dashed, Mr Salmond is already having to deal with internal criticism of the campaign he ran, especially the decision to promise to raise the basic rate of income tax by 1p in the pound.
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The report points out that the vast majority (85%) of tax revenues already come from people in the top half of the distribution, but if the government wants to raise more from them, raising the basic rate of income tax for the first time in 40 years would be a decent place to start.
In 2008 Korea introduced an earned-income tax credit, a universal basic pension and an insurance scheme providing long-term care for the elderly.
Labour's manifesto - Ambitions for Britain - set out the party's goals until 2010 promising changes to public services but no rise in the basic or higher rates of income tax.
The manifesto confirms its ambitions on tax: for a lower 10p starting rate of income tax, for a cut from 8% to 5% in value-added tax on fuel, and for no increase in the 23p basic rate nor the 40p higher rate of income tax.
It would be, Mr Obama said in his weekly address, an "up-or-down vote on a basic package that protects the middle class from an income tax hike, extends vital unemployment insurance for Americans looking for a job, and lays the groundwork for future progress on more economic growth and deficit reduction".
First, it wants, as noted, to establish a tax-funded universal entitlement to basic living income (set at JPY 70, 000 a month, up from the current JPY 66, 000) for all elderly and retired persons, with, however, a phased reduction and final elimination of the entitlement in relation to pension benefits being received from pension plans into which had previously contributed premiums (i.e, the current system).
Why not raise the income-tax threshold, in particular, rather than tinkering with the bands and basic rate?
Manifesto promises will stop Mr Brown raising the basic (23%) or top (40%) rates of income tax.
Subsidize lower-income people in some way, like refundable tax credits, to ensure people have money to buy good basic coverage, but then they'd have to add their own money if they wanted something more extravagant.
The basic questions are: how much income is to be distributed, who are the beneficiaries, what are their tax rates and what are their needs, says Faith Matous, a trust officer with PNC Bank.
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