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
Belief
Community
Culture
Music
1 min read

Oasis: it's all gone a bit biblical at this summer’s musical moments

We’re reaching for some ancient vocab to describe our experiences together

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

A silhouette of a musician holding up shakers.
'Cast no shadow'.
x.com/oasis

A biblical narrative keeps whirring around my mind.  

In the first century, Paul – planter of churches, writer of letters, spreader of the way of Jesus – finds himself in Athens, the Graeco-Roman city where meaning is made. He wanders around this city, soaking up its culture, noticing its priorities, watching its habits. But he doesn’t do so silently. Paul pulls out his usual party trick; yelling about Jesus here, there, and pretty much everywhere, eventually catching the attention of the local philosophers. They want to hear more, and Paul finds himself thrown in front of the Areopagus, the meaning-making council at the heart of the meaning-making city. The cultural epicentre of the Graeco-Roman world, one could argue.  

Never one to miss an opportunity, Paul gets to his feet and unleashes a monologue for the ages, kicking off with this line: ‘People of Athens! I see that in every way you are very religious…’ 

Quite the opener, isn’t it? 

It’s that opening line that my imagination seems to have gotten snagged on.  

There is so much going on around me – right here and right now, in 2025 - that makes me want to find a place into which I can scream the exact same thing. There and then, here and now, I can see that in every way we are very bloomin’ religious.  

What Paul and I don’t mean by such an assertion is that everyone our contexts are signed up – hook, line, and sinker - to an organised religion. Such an assertion would be silly, considering the data tells a different story. What I’m pretty sure Paul meant, and what I know I mean is this – in every kind of way, people are searching for that which is bigger, deeper, truer than ourselves. We are directing our attention, our energy, our worship in certain directions. We are seeking ritual and practice, wrapping ourselves in stories that give meaning to our day-in-day-out experiences, stories that tie our lived reality into something that transcends it. We’re grasping for a world that is more full of beauty, truth, and sense than we imagined; pledging allegiance to our inkling that there is something more. Yup. In every way, we, the good old human race, are very religious.  

Paul said it with his chest then, I think he’d say it with his chest now. 

There are a hundred different places that I could go in order to pluck some ripe evidence for my theory – but for now, my evidence of choice is the language being used to describe the long-awaited Oasis reunion.  

‘Biblical’ 

That’s the word being used – in national headlines and personal Instagram captions alike, ‘biblical’ is the adjective of choice.  

Isn’t that strange?  

I don’t really know what people mean by it, to be honest. According to my research, they’re taking their cue from Liam Gallagher himself, who was the first to describe the band as such. Stay humble, Liam.   

Is using ‘biblical’ as the descriptor of choice a reference to the reconciliation of warring brothers? That’s certainly a biblical motif, which I guess is being played out in real-time, witnessed by those who could afford the £400 ticket (no, I’m not bitter). Is it implying that this event is so monumental, it should be canonised somehow? Written about? Memorialised? Poured over for millennia to come? Or is it a reference to the fact that what we are witnessing is the fulfilment of rumours, prophecies, hopes and expectations?  

Maybe it’s all of the above, maybe it’s none of the above. It doesn’t really matter. What matters, at least to me, is that people are wanting to express that these gigs are more than the sum of their parts; there’s something transcendent about them, something awe-inspiring, wonder-infusing. Something that feels, dare I say it, religious about them.  

It gets even more interesting, because such sentiments aren’t reserved for the reunification of the Mancunian brothers.  

I’m still stunned, curious to the point of distraction, about the fact that we – in a secular, materialist, rational culture – cannot help but stretch toward spiritual language. 

In a podcast episode recorded in the days leading up to this year’s Glastonbury festival, the DJ and broadcaster, Annie Mac, described the event as ‘communion’, explaining that ‘when you don’t go to church, you need to get that somewhere.’ On the flip side, in the days following the festival, another DJ and broadcaster, Miquita Oliver, teased the endless Glastonbury posts that were filling up her social media feeds – she jokingly stated that ‘it all gets a little churchy after Glastonbury… like “it’s heaven on earth”… can we all relax?’  

So, here we have it again – people reaching for religious language to describe significant musical events. Be it the Oasis reunion or Glastonbury – I’m fascinated by the fact that we’re not content with stating that these gigs are merely talented people doing what they do well, and in so doing, giving us an enjoyable time. Such language may be factually accurate, but it doesn’t feel true enough to us. Rather, we’re grappling with the feeling that these events feel like something we were made to experience somehow, they they’re tapping into the deepest parts of us, perhaps?  

In the past, I’ve wondered whether this is down to the sense of profound togetherness that these events provide – how they have the ability to remind us that we’re bound to each other, only if for a night. They’re a direct afront to individualism, the biggest and sturdiest lie of our age. I’ve also reflected on the fact that they instil as sense of awe within us: raw awe. An elusive emotion that can be hard to come by, but that we were made to feel. I still think all of that comes into play. 

I’ve pondered this a thousand times and yet I’m still stunned, curious to the point of distraction, about the fact that we – in a secular, materialist, rational culture – cannot help but stretch toward spiritual language. Nothing else quite hits the spot; nothing else feels quite deep enough, big enough, true enough. Religious references and language, we’re determined to keep them in our repertoire, aren’t we? Our reliance upon them betrays us. Indeed, I’ve come to see our unceasing usage of them as a crack in the façade of disenchantment. 

Oh, people of 2025 and beyond, I can see that in every way you are very religious.  

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