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Middle East

27 September 2023

4 min read

The harsh reminder of our common humanity

Iran’s latest sanctions on protestors are a harsh reminder of the importance of diversity, solidarity and our common humanity, writes Krish Kandiah.

Krish Kandiah

Krish is a social entrepreneur partnering across civil society, faith communities, government and philanthropy. He founded The Sanctuary Foundation.

A protester holds a red placard bearing the name and image of Mahsa Amini

It has been a year since the widespread protests across Iran sparked by the death of Mahsa Amini. The courageous 22-year-old was killed in prison for refusing to wear the hijab headscarf. To mark the anniversary of her death the Iranian government issued new legislation increasing the punishment to women who are deemed “inappropriately dressed” from a previous punishment of 10 days in prison to a maximum 10-year incarceration sentence.

According to the World Economic Forum, Iran is ranked 140 out of 144 countries in the area of gender equality. Iran’s current leadership suppresses not just the clothing of women but their voices, skills, perspectives and decisions too. Women choosing to forego the hijab had previously been a way to peacefully push back on the inequality they are facing. This symbolism of resistance is now not only forbidden, but criminal. Even business owners who serve women who are not wearing the hijab are liable for prosecution under the new laws.

As a father of three daughters, I find Iran’s new laws deeply disturbing. I cannot even imagine the desperation of Amjad Amini, Mahsa’s father, who this week was put in prison in an attempt to short-circuit any protests of his daughter’s death. He faces not just the trauma of the state murder of his daughter, the risk to his own life and the inability to grieve in peace, but also the devastating consequence of her death on 49 million other women in Iran with the tightening of the very laws his daughter was protesting against.

It could learn a lot from Jesus who went out of his way to welcome those that others looked down on.

As a Christian I find these oppressive laws deeply troubling too. One of the most revolutionary marks of the Christian faith is that it recognises the absolute equality and intrinsic value of all human beings. No matter what our age or race or gender or sexuality or nationality or ability or immigration status or political persuasion or faith, all are made in the image of God. I believe it is therefore an essential element of my faith to speak up for the rights of my fellow human beings, particularly when they are being marginalised, tyrannised, dehumanised or disempowered.

This means the oppression of Muslim women in the Middle East matters to me. Although we come from different cultures, live on different continents and hold different views about God and how to worship him, I believe we are connected by our common humanity.

Sadly, our common humanity is not always recognised either by Christians or those outside of the church. The church in the UK has too often been guilty as charged for misogynist, homophobic and racist attitudes. It could learn a lot from Jesus who went out of his way to welcome those that others looked down on. He was not afraid to face criticism for spending time with those the religious folk of the time had traditionally mistreated. It is time for the church to follow his example and take a lead in treating everyone with compassion and in standing up for the basic human rights of women, those in the LGBT community, and those from other countries.

Our common humanity is becoming overlooked too in our polarised world as it further divides over identity politics. There is a developing norm to focus less on the things that unite us and more on what differentiates us. Our latest culture wars are pitting women’s rights against trans rights, telling us that the rights of black people are opposed to the rights of white people, or that the rights of immigrants are at odds with the rights of settled passport-holders. But that is not the way things have to be or should be.

I believe that the opposite is true: that the world can be better for all of us, that there is strength in solidarity, that diversity is genuinely good for everyone.

This is why I recently turned up at a campaign calling for the rights of Afghan women and girls to be respected, why I publicly advocate for refugees and care-experienced young people, and why I insisted on greater representation of the LGBT community in my work with government. This is why I offer race and faith literacy training to government bodies, churches and businesses. This is why I have opened up my home to foster children and refugee families. This is why I set up my charity, Sanctuary Foundation, to advocate for those who do not feel safe in their own country. This is why I call the church to action and compassion for all whose rights have been taken away or are being eroded. This is why, in as far as it depends on me, I will champion equality for all.

And this is why I will continue to be calling on the government to open safe and legal routes for all those who are being oppressed and persecuted in the countries where they live. I would like the government to offer our country as sanctuary to women from Iran whose lives are endangered, whose human rights are being denied. I would like our country to offer asylum and hospitality to those who have had to flee Iran after daring to challenge the brutality of the current regime. I would like our churches to lead the way in warmly welcoming all those from Iran and anywhere else who have never experienced unconditional love and acceptance.

Explainer

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Economics

29 October 2024

6 min read

How to tax ethically to avoid a two-tier society

From income tax to property and inheritance taxes, which is fairer?

Laurence Fletcher

Laurence is a journalist at the Financial Times.

Sarah Agnew on Unsplash.

Few doubt that Chancellor Rachel Reeves will be putting up taxes when she presents her first Budget on October 30th.

The political narrative of recent months has very much been of an alleged fiscal “black hole” of £22bn - or is it £40bn? - that somehow needs to be filled.

While the size of the shortfall and the identity of those responsible are both hotly disputed, and despite a lack of detail from the Treasury about what it actually consists of, the questions now being asked are not whether taxes will rise but which ones and by how much.

Months of speculation have focused on employer National Insurance, capital gains tax and freezing income tax thresholds as areas that Reeves could look to for the additional revenue.

But beyond the immediate issue of raising enough revenue to make good any shortfall, lies a deeper, trickier question about the way in which taxes should be levied for the good of society. If a government is to force people and companies to hand over their money, then what is the most ethical way to do this? Who should pay and who shouldn’t? How can tax be used to reduce inequality and build a better society?

Answering such questions is, of course, far from straightforward, because there are plenty of other factors in play.

For instance, some taxes are surely levied because they are simpler to collect. Take income tax - an unpopular measure introduced in 1799, then abolished before being reintroduced as a supposed temporary measure. It could certainly be argued that taxing people’s income - their attempt to get on in life and improve their lot in life - is less “fair” than taxing wealth that has been accumulated by someone’s ancestors years ago. Working hard and earning income is often surely a way of breaking down class divisions. But income tax - contributing 28 per cent of UK government tax take in 2023-24, according to The Institute for Fiscal Studies - has the advantage that it is relatively difficult for the average worker at a UK company to avoid it. Ease of levying it is surely a driver.

Equally, some taxes that might seem “fairer” have deliberately not been levied because of the difficulty in collecting them, and/or because to try to do so could be counterproductive.

A wealth tax, for instance, would be “economically damaging”, according to one of the UK’s highest profile tax experts Dan Neidle.

Or take the politically contentious issue of non-doms, a colonial era tax break allowing rich foreigners to avoid UK tax on overseas income. It would be fairer, the argument goes, to tax them on the whole of their income. If they are going to be resident in the UK, then surely they should be taxed like a UK resident whose home is here?

Former Chancellor Jeremy Hunt abolished this regime earlier this year but left a number of concessions that the incoming Labour government pledged to abolish. But non-doms are tax-sensitive and highly mobile, and a number of jurisdictions compete to attract them. Many are entrepreneurs and wealth creators that many countries need. Reports have suggested a clampdown could raise no money or even cost money and could drive people away.

“Housing is being treated as a commodity. The problem is, it’s not; it’s not just an asset. It has utility value and a communal and quasi-spiritual value, enabling people to feel rooted.”

Paul Williams

So, what can be done to use tax in an ethical way? Paul Williams, research professor of marketplace theology and leadership at Regent College, Vancouver and chief executive of the Bible Society, takes a Biblical perspective that he believes offers some solutions.

He takes as his starting point a story from the gospel of Matthew, where Jesus is asked whether people should pay taxes to Caesar. The question is a trap - either Jesus gives his backing to taxation that is highly unpopular with the Jewish people, or he rejects the tax in an act of rebellion against the Romans.

Jesus replies that they should “pay to the Emperor what belongs to the Emperor, and pay to God what belongs to God.” We are to pay our taxes to those in authority, but we are also to honour God.

While Williams believes that too much emphasis is placed on the Budget and political parties’ promises to be able to fix everything, and that a more radical rethink of our economy is required, he also sees room for positive tweaks to the current system.

One key area is the property market, the manifestation of so much inequality in society, with some people owning multiple houses while others cannot afford to buy one.

Williams argues that the ready availability of debt finance has allowed those who already hold assets to easily acquire properties, turning real estate into an investable asset class to the detriment of many of the poorer in society.

“The reason there’s so many homeless people and empty houses is due to debt finance. It makes it easy for a relatively small proportion of the population to acquire a large percentage of the assets.

“The system has allowed a structure in which a small advantage in the beginning can lead to big, big differences over time.”

Williams highlights parts of Devon and Cornwall that have been, he says, “completely ruined” by wealthy people from elsewhere buying second homes, leaving property “out of reach of anyone who lives and works there”.

Nevertheless, he believes taxation can be used in this area to help level the playing field.

He proposes a “pretty punitive” marginal rate of tax on ownership of more than one home. (Stamp duty only partly does the job and is a blunt instrument also affecting people moving homes, thereby makes mobility expensive).

“You want to disincentivise the way the housing market is used for speculation,” he said.

“Housing is being treated as a commodity. The problem is, it’s not; it’s not just an asset. It has utility value and a communal and quasi-spiritual value, enabling people to feel rooted.”

Buy-to-lets, meanwhile, are better than having empty second or third homes, but “wouldn’t it be better if occupiers could buy that house?” he adds.

Meanwhile, research by the Financial Times recently found a huge wealth gap between the average millennial and the top 10 per cent of millennials, who are benefiting from family wealth to accumulate substantial housing assets.

So, would increasing the rate of inheritance tax - one of the most hated of taxes - and/or lowering the threshold also help reduce some of this inequality? After all, how is it fair that one child in the UK is born to inherit large property wealth while another is born to inherit little or nothing? Or, even worse, that second child will only ever be able to afford to be the tenant of the first, paying them rent for the rest of their lives?

Williams is not a fan of inheritance tax per se, arguing that it is “not part of the package” in a Biblical image of a flourishing economy.

But he adds an important caveat: “the playing field is not level.

“There might be circumstances to impose a one-off tax on the very wealthy… if you want a transition to a more equitable society.”

Such steps are not easy to take. It is, he admits, probably “career suicide” for a politician to adopt such views. But if we are to take steps towards a fairer way of life, and avoid a two-tier society in decades to come, then maybe the conversation needs to shift this way. Perhaps the Budget could be the time to start.