And thetax treatment ofpensions, allowinghigherrate payers to defertaxationuntilthey are a basicratepayer inretirement, means pensions will still bethe first choicefor manysavers.
But the dividends are received by investors as if they have already paid basicrate income tax (the corporation taxrate is about the same as the basic income taxrate).
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 taxrate to make the tax system fairer and continue Lloyd George's progressive and Liberal principles.