THE Liberal Democrats looked set to become the ''soak the rich'' party

after unveiling yesterday a policy paper which suggests a 60% rate of

income tax on those earning more than #100,000.

Labour, which used to hold the title, described these ideas as

''absurd'', and Tory Party chairman Jeremy Hanley said that after

criticising the Government's tax record the Liberal Democrats were now

proposing ''massive'' increases of their own.

The Liberal Democrats are taking a considerable political risk in

announcing that they favour three higher rate tax bands above a standard

rate one. They are not announcing what the rates would be, except for

the top one. They promise that the higher bands would start at least

#5000 a year above the current top rate trigger of #27,145. Their policy

document says the first objective is to set out a clear structure.

They criticise the present position saying that under it some people

with incomes under #30,000 but only claiming the personal allowance are

being taxed at the same rate as those on salaries above #100,000.

They said their first higher rate band would start at an income level

not less than #33,000, #5000 above that at which the current 40% rate

starts. There would be a second higher rate biting on income between the

first higher rate range and #100,000.

Asked at a Westminster news conference if the party risked alienating

better off potential supporters, deputy leader Alan Beith replied: ''The

vast majority of people will see that these proposals will in many cases

have them paying less taxes, in some cases not very much more tax.''

He said those targeted for higher taxes ''could afford it''. He said

the present 40% top rate came in at too low an income level.

Latest available figures, for 1990-91, show that 81,000 people earned

#100,000 or more.

With Labour likely to be cautious about increasing taxes, the Liberal

Democrats could go into the next election as the highest taxing of the

main parties.

The party document, Opportunity and Independence for All, in

preparation for two years,'' is thought likely to be approved at next

month's party assembly. The party would take 50,000 of the lowest paid

out of tax altogether by raising the tax threshold to #3445 to encourage

more unemployed people to take part-time jobs.

It also proposes to abolish the married couples' allowance to fund an

increase of up to #5 a week in child benefit. Child care vouchers would

be introduced to help parents wanting to take jobs to meet the cost of

childminders.

Longer term objectives when resources permitted would see the phasing

out of mortgage tax relief, but the introduction of a mortgage benefit

scheme to provide assistance with mortgage payments for low income,

home-owning families, improvements to the Social Fund which is, they say

''unjust, inconsistent and inefficient,'' and restoration of income

support to young people between 16 and 18 who are not in work, training

or supported by their parents.

Leader comment14