Explainer
Comment
Economics
6 min read

How to tax ethically to avoid a two-tier society

From income tax to property and inheritance taxes, which is fairer?
a pile of coins.
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. 

Article
Comment
Feminism
Migration
Trauma
6 min read

“Defending our girls” is less about safety, more about scapegoating

The men who finally care about violence against women — just in time to blame immigrants for it

Belle is the staff writer at Seen & Unseen and co-host of its Re-enchanting podcast.

A protestor holds a blue smoke canister towards the camera lens.
An asylum hotel protester, Epping.

Something has profoundly shifted in the way we are speaking about male violence against women and girls. Or perhaps I should say, the shift is precisely that we are speaking about male violence against women and girls.  

Wait.

Would you allow me to slightly amend that statement once more?

I say ‘we’ are talking about it, what I really mean, if I may be so blunt, is ‘men’. Men are talking about male violence against women and girls.  

Therein lies the shift. 

Women have been speaking about this epidemic of violence for years, they have been having endless conversations about the complexities of their own sense of sexual safety, relentlessly sounding the alarm. And, all too often, being ignored. It has so commonly felt as though women could scream about this topic at the top of their lungs and be met with an exasperated eyeroll. Perhaps that’s ungenerous of me, maybe the lack of political interest has been more about despondence than disbelief. Either way, it has continually appeared as though male violence against women and girls has sat, slumped and hopeless, at the bottom of the political agenda.

Until now, that is. Now, it is the crux of many campaigns, sitting right at the forefront of multiple political conversations. One conversation, in particular.  

Earlier this year, Conservative MP, Robert Jenrick, wrote an article in which he stated that he fears for his daughters’ safety, not wanting them to live near ‘men from backward countries who broke into Britain illegally and about whom you know next to nothing’. Political party Reform UK has a concern for women’s safety sitting at the forefront of their campaigns; again, Nigel Farage (leader of Reform UK) has continually suggested that it is the immigrant communities in the UK who are posing the threat. Signs that read ‘defend our girls’ have been ever-present at many of the anti-immigration protests that have happened throughout the summer months, the same phrase was chanted by those taking part in the ‘Unite The Kingdom’ march, organised by far-right activist, Tommy Robinson.  

So, we have a direct line being drawn between immigration and the epidemic levels of violence against women and girls. A common enemy is a powerful thing, isn’t it? A uniting thing? An energising thing, even? This line from A to B (‘A’ being the violence and ‘B’ being people who have come to this country from another) is one that I cannot draw myself. I find no biblical nor sociological justification for doing such. In fact, I’m hit with quite the opposite. 

I’ll get biblical, but shall we start with the sociological?  

Violence against women – be that physical, verbal, sexual, financial, or any other nuanced kind – is a tragic reality here in the UK, as well as globally. We know this and there can be no denying it.  

One in three women will experience domestic abuse.  

A woman is murdered by a partner/ex-partner every four days.  

One in two rapes against women are carried out by a partner/ex-partner.  

More than 90 per cent of perpetrators of rape and/or sexual assault are known to their victims.  

One in three adult survivors of rape experience it in their own home.  

These facts are heartbreaking, stomach-churning, worthy of our indignation and fury. They do not, however, imply that the dominant threat to women are strangers who have come to UK from other countries. Such claims, while being spoken of loudly and continually, are unfounded.  

There’s almost an ‘if-only-ness’ about such claims, isn’t there? And so, if I lower my hackles, I can sympathise with wanting such claims to be true, albeit momentarily - if only we could solve male violence against women and girls so easily.  

If only it were so neat.  

Instead, we have to sit in the utterly overwhelming, and often debilitating, reality that violence is being carried out against women in every age group, every socioeconomic group (although it must be acknowledged that women who can’t access public funds, such as welfare support or housing assistance, are three times more likely to experience violence), every ethnic group, and in every corner of the country. As a woman, if a man is shouting at me while I’m alone – it makes no difference what language he’s shouting at me in, tragically, I’ve learnt to be scared regardless.  

The notion that it is an imported problem that can therefore be a deported problem, is wrong. And, dare I say it, undergirded by racism.  

It’s perhaps also worth mentioning that there is footage from the recently held ‘Unite the Kingdom’ march, during which the mandate to ‘defend our girls’ was continually chanted, of men chasing female counter-protesters down the street. While a call to defend women was chanted one minute, a call for women to expose themselves was chanted the next. Furthermore, it has been reported that 40 per cent of those arrested during the 2024 anti-immigration protests had previously been reported to the police for domestic abuse. In my home city of Bristol, it was two-thirds of those arrested.  

So, while women’s safety seems to be at the forefront of political and social movements right now, I can’t help but be deeply suspicious of the intentions behind it. It seems to me that the same people who have spent the last five-or-so years responding to women’s pleas for help with an irritated ‘not all men’ chant, are now more than happy to point at a marginalised group of people and declare ‘but probably all those men’.  

But this isn’t simply sociological, nor is it purely political. For me, there are theological reasons why I can’t help but wince at what is happening.  

I simply don’t think the Bible gives us the option of pitting one marginalised group against another; it’s clear on the fact de-humanisation can never be a tool in our societal toolbox. In fact, if we’re going to get biblical with it, vulnerable women and ‘migrants’/’foreigners’/’strangers’/’sojourners’ – they’re always on the same list.  

‘He defends the cause of the fatherless and the widow, and loves the foreigner residing among you, giving them food and clothing’ – that’s the book of Deuteronomy. And this – ‘Do not oppress the widow or the fatherless, the foreigner or the poor. Do not plot evil against each other.’ – is the book of Zechariah.  

I could go on.  

We have a shared humanity and, therefore, a sacred responsibility to protect both the women and girls who are facing unspeakable injustice, and those who are being unfairly scapegoated for it. It’s an uncomfortable tension, I can’t deny it. It refutes quick-fixes, it raises its eyebrows at cheap blame, and it absolves any comforting notion that the problem flows from elsewhere - Christianity simply does not offer such a luxury. Compassion cannot be finite, love – as Graham Tomlin has argued – cannot be a limited commodity. 

And this is precisely why such things being increasingly carried out in the name of Christianity makes no sense to me. Surely, this cannot be espoused in the name of the Jesus who destabilises the boundaries between ‘Our Sort of People' and 'Those Others Over There?’ (to quote Francis Spufford)  

We cannot be fooled, fear and distrust on the basis of someone being different from ourselves is not – I repeat, not - a Christian value. One vulnerable group’s pain being unjustly weaponised against another vulnerable group has no hint of Jesus about it. Plus, doing so knowingly compromises the care we can offer to both groups. 

I’m getting a little weary of being told that, as a woman, this hate will ensure my safety. Both sociologically and biblically, I’ve found the grounds to call time on such a claim. 

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