Speaking at a Westminster press conference last night, Clegg said if the Government scrapped projects such as Shares for Rights and the marriage tax break then it could raise the income tax-free allowance to £10,700.
Under the Shares for Rights scheme, employees give up some rights concerning unfair dismissal, redundancy pay, flexible working and time off for training in return for at least £2,000 of shares in their employer's business.
The policy was personally championed by chancellor George Osborne who made it the centrepiece announcement of his 2012 party conference speech. However, the scheme has received little take-up with figures published in July 2013 showing just 19 inquiries have been made about the scheme.
"My priority in the March Budget will be to deliver a workers' bonus, to go further than the £10,000 income tax allowance that we will be delivering in April," Clegg said.
"I want to go further. I've said that if we can responsibly find means to deliver an even higher allowance of £10,500, we should do so. That would be worth an extra £100 off the tax bills of over 20 million basic rate taxpayers.
"Maybe we can go further still. If the Conservatives were prepared to give up spending huge amounts of money on their own tax pet projects, whether it's the marriage tax break or the tax incentives encouraging people to give up their employment rights to take up shares, we could deliver a £10,700 tax allowance."
Clegg said this would be worth £140 "back in the pockets" of more than 20 million basic rate taxpayers.
Shadow business secretary Chuka Umunna agreed with scrapping Shares for Rights, calling it "a ridiculous policy that had the support of very few people".
A Treasury spokesperson responded: "Let's not forget that this scheme is not meant to be up and running until September."
