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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. 

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Fun & play
8 min read

Table-top philosophy: role playing games and the identities they help construct

A once derided fantasy genre now influences creative media - from The Big Bang Theory to Stranger Things.

Harry Gibbins  is a doctoral researcher at the University of Aberdeen. His PhD concerns the intersection between autism and Christian ministry.

Three teenage boys rise up from a table-top game and celebrate a victory.
Playing D&D in Stranger Things.

Picture this: no longer are you sitting at a computer desk or staring at your phone during your commute. Instead, you are an intrepid explorer, a noble warrior, or a cunning thief. You have left behind the mundanity and anxieties of the 'real world'. Now, you are a protagonist in a new story.  

Your choices will shape the world around you; your actions will be written into legend and recounted for centuries. But this is not done in isolation. You are together with friends. You work as a team; you bond, laugh, and celebrate each other’s achievements as a unit. You are not alone; you are an adventuring party.  

Behind the grey skyline through the condensation-heavy glass of the train window is a world of infinite possibilities. Here, in your mind’s eye, you shape reality. Here, you become the person that, right now, you want to be. There are no limitations beyond what you believe is possible. You are the captain steering the ship into uncharted waters where the aim is to share a good yarn with your friends. 

There's a fine line between fantasy as a genre and escapism as a psychology. As we parade myth and legend within our respective cultures and contexts, we find something of ourselves. We read of Frodo Baggins, the underdog who takes on a responsibility of epic proportions, and see qualities we want to inhabit. We hear of Iron Man's sacrifice to save friends and see something of our own relationships. This is not to say we literally aim to overthrow a dark lord or defeat a purple space utilitarian, but we see the humanity reflected within relatable moments through the fiction. The story we read or watch somewhat touches the cadence of the 'real world' no matter how fantastical. 

In an age where this cadence and its story-focused elements are twisted to become more marketable, where is the authenticity? How do we begin to tell our own stories? Is there a way in which our stories can speak of this cadence of the ‘real world’ without the necessity to satisfy business? 

As the game creates a safe environment in which players can enact hypothetical scenarios. In other words, to fantasise about who they are and the world around them. Consequently, there is an opportunity to ask again: "What story do I want to tell". 

Enter stage left: Table-top Role-playing Games (TTRPGs). The picture painted in the opening paragraph is steeped in my experience of commuting. Although not a universal experience, I found commuting sucked all life from my world. If there is a hell, perhaps it is a continuous never-ending loop of the Northern Line. I found myself recounting the previous evening, time spent with friends playing the fantasy TTRPG Dungeons and Dragons, reflecting on what I had learnt from such an experience. As a theologian, I would ask if there was something of myself that I was seeing in the stories told. When I returned next time, where did I want this story to take me next? What story do I want to tell? 

Dungeons and Dragons, or D&D, has been propelled into the cultural zeitgeist in the last decade. Featured in popular television shows such as The Big Bang Theory and Stranger Things, D&D has emerged out of nerd basements and into the mainstream. No longer is D&D seen as something exclusively for 'mega-nerds'. It now stands shoulder-to-shoulder with other culture-shaping fictions, such as The Lord of the Rings and the Marvel Cinematic Universe.  

In 2014, the fifth edition of D&D and aimed to streamline and tighten up the accessibility of the game whilst promoting creative and complex storytelling as a valued method of playing. In its earliest editions, D&D didn't care for character backstory or where the dungeon came from. A player’s aim was simply to kill some baddies and find treasure. However, today’s D&D aims for more nuance. Psychologists Sören Henrich and Rachel Worthington highlight that this has allowed D&D to have a genuine therapeutic application.  As the game creates a safe environment in which players can enact hypothetical scenarios. In other words, to fantasise about who they are and the world around them. Consequently, there is an opportunity to ask again: "What story do I want to tell". 

Perhaps the most obvious example of this philosophy in action is the role D&D takes in Netflix's Stranger Things. The show is not explicitly about D&D. Rather, the game is used as an illustrative tool, showing the actions of the characters, as well as providing a metaphor for the mystery they uncover and the journey they go on.  

The show opens with four young boys playing a game of D&D in their parents' basement. The players discover a Demogorgon, a classic D&D monster, and they must work together to defeat it. However, their immaturity gets the better of them and they fail. In D&D, player characters take on different roles; it is only by working together that their various weakness can be supported, and the villain defeated. This is the lesson that the boys learn: teamwork. It is only when they learn to support one another that are they able to defeat the 'real-life' Demogorgon they discover in their small American suburb. 

Nine belonged with his friends, he was not simply 'put up with'. His style of encountering problems and solving puzzles strengthens the whole team. Nine was not a burden. 

In Stranger Things we find D&D acting not just as a thematic motif, but also as illustrative of a journey the young people go on. So, what are the philosophical mechanics behind this? How is D&D as a phenomenon transformative and illustrative in our present reality? Philosophers describe this sort of thinking as 'Phenomenology'. In simplistic terms, it concerns the lived experience of a phenomenon, seeking to uncover its essence. What actually makes that 'thing' you experience a 'thing' at all? Are there attributes that are common across all experiences of that phenomenon? Or, more likely, is there a rich and informative complexity to its innermost workings?  

Whilst I am far from describing what the essence of D&D as a phenomenon is, I can speak of my own lived experience in the hope that it demonstrates how D&D is the transformative tool Stranger Things positions it to be. I hope that this not only illustrates my argument, even if it is as simple as “D&D is good”, but also provides a window in which my own story can be understood. 

I have written elsewhere about the role D&D has played in my theological evaluation of complex theoretical ideas. It has ultimately shaped the way I research and encounter complex questions. However, I want to highlight something different. In my other work, I spoke of a character I played for three years, a Tabaxi Paladin named 'Nine'. Nine was somewhat of an experiment. After I was diagnosed as autistic, I found great difficulty in knowing who I was. Are there parts of me that are not autistic? Am I being autistic subconsciously? Or am I actively choosing to act in a way that a clinical professional has decided is autistic? Who am I? Nine was to be a method of exploring such questions. I wrote Nine as autistic in a way that was a somewhat exaggerated version of myself. Yet, there was a distinct difference. Nine was the 'me' who had come to terms with being autistic; Nine knew who he was and was proud of it; Nine just simply was Nine.  

This was obviously not a perfect solution; the world of D&D does not have the clinical vocabulary to describe autism. In fact, whether autism exists in a fantasy world is kind of a fuzzy question. Was I inventing autism within the world by playing a character in such a way? Or is there ever a way I could not play a character as autistic due to being autistic myself? What emerged through Nine's interactions was something that, on a very personal level, I found deeply satisfying, illuminative, and transformative.  

Nine developed, some might say unsurprisingly, relationships among the other player characters. He lived as I do, as a social creature in a social world. Whilst his interactions were sometimes unusual, perhaps in much the same way as my own, his friend still came to love him. Following the framework of theologian John Swinton, Nine was more than just included; Nine belonged to this group simply because in his absence he would be missed. Once I had realised this I was taken somewhat by surprise. The differences between Nine and the other characters still mattered, but they were not barriers. Nine was valued, not someone who just was difficult to approach, off in his own little world, or obsessed and hyper-fixated. Rather, he was one part of the whole. Nine belonged with his friends, he was not simply 'put up with'. His style of encountering problems and solving puzzles strengthens the whole team. Nine was not a burden.

D&D highlights the strength storytelling, narrative building, and art in all its forms, have for those who are coming to terms with their identity.

This was where the transformation occurred. I realised that I was the Nine who did not have this understanding. Harry erroneously believed that he did not belong when really he always did. Harry was embarrassed about his challenges with social engagement, his obliviousness to the world around him, and his inability to get through a conversation without talking about Doctor Who. Yet, here I was, among friends who cherished and valued me. Here, I truly did belong, and it was Nine who taught me that.  

 I hope that this illustrates just a snippet of the potential this game, and games like it, have to offer. I believe there is much more to be said about the philosophical truth spoken through D&D in much the same way we talk about other forms of art or narrative. This is just a portion of what is possible, and I hope I learn much more about myself as I continue along these adventures with my friends. I would encourage anyone reading to give D&D a go. Although, I am aware I have had a very specific and positive experience that is not universal among players of the game. Perhaps the focus should not be that D&D is the best tool for therapeutic action. Rather, D&D highlights the strength storytelling, narrative building, and art in all its forms, have for those who are coming to terms with their identity. Whilst we may be tempted to describe ourselves simply, as I was when I was diagnosed as autistic, D&D reminds us that the stories our lives tell will always demonstrate more depth. Our lives our simply stories that we are constantly engaged with and that we are always telling.