Although relating specifically to Scotland this is an interesting read regardless of which side of the fence you're on ...
http://news.scotsman.com/opinion.cfm?id=149422005
My selective quote is: "As council tax takes no account of salary, the elderly who choose to keep living in their family house pay the same as a millionaire living in similar-sized accommodation - as a result, pensioners have led the protest against council tax.
THE Liberal Democrats and Scottish National Party have the same solution: a local income tax to shift the burden on to fewer, but richer shoulders. The results, however, would hit Middle Scotland hard. Working couples would feel the pain most. A couple paid the national average wage, using the Lib Dem figures, would instantly face a 23 per cent council-tax increase. For many others, council tax would instantly double."
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Originally Posted by bob_builder
As I understood it, although the Lib Dems were looking to reduce the tx paid by people on lower incomes they were also looking to increase their overall tax take to pay for more investment in schools and hospitals. (I seem to remeber a higher income tax bracket at 50% was being discussed.)
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That's pretty much it. The new national income tax rate band would see earnings above £100k pa (and only earnings above 100k) being subjected to a 50% rate. Richer would pay more, poorer pay less. The overall tax take - the tax generated for the nation - would remain the same.