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
Ethics
Fashion
Race
5 min read

Anna Wintour is not a moral compass

The Vogue editor’s championing of diversity is all very well, but it’s based on what sells
Anna  Wintour stands holding a small mic.
Anna Wintour.
UKinUSA, CC BY-SA 2.0, via Wikimedia Commons.

Last month, the Costume Institute at the Metropolitan Museum of Art in New York launched a new exhibition. “Superfine: Tailoring Black Style” highlights the history of Black people resisting white supremacy through their sartorial choices. A few weeks after it opened, the 2025 Met Gala, which serves to raise funds for the Costume Institute, was chaired by Black voices across the creative industries, including A$AP Rocky, Pharrell Williams, Lewis Hamilton, Coleman Domingo and Lebron James. The exhibition has already received rave reviews from Black writers and academics, likely in part due to its co-curation by Monica Miller, who literally wrote the book on the subject Slaves to Fashion: Black Dandyism and the Styling of Black Diasporic Identity

Concurrently, a few hours south of New York City’s Metropolitan Museum of Art in Washington DC, Donald Trump was calling Diversity and Inclusion initiatives “dangerous, demeaning and immoral.” A series of policies rolled out across the US federal government has led to the shutdown of not only diversity programmes, but a quiet disappearance of wording and other initiatives that might be interpreted as promoting similar themes. 

But the Costume Institute, which does not receive any federal funding, is uniquely free to follow Anna Wintour’s steer. And Wintour, Conde Nast’s Chief Content Officer and Editor in Chief of Vogue, is fighting back. “I feel we need to be courageous”, she told the Washington Post last month. Now, she added, is “a challenging time”.

Until now, Wintour has been an unlikely activist. Vogue has long been criticised for a range of ethical issues that include,  including lack of diversity, promotion of unhealthy body standards, and the sexualisation of young women. But are the magazine and Wintour now our bastion for future hopes of racial justice and equality?

In 2020, many of my friends and family ordered books and listened frantically to podcasts about race in America because of the events surrounding George Floyd’s death. In May 2020, a video circulated of officer Derek Chauvin suffocating George Floyd as he called out for his mother, leading to a flurry of protests and debates about the racial bias present in institutions. 

In those days, learning about the systematic injustice faced by Black Americans and calling for change felt popular. Everyone was doing it. Books like The New Jim Crow by Michelle Alexander, Why I’m No Longer Talking to White People About Race by Reni Eddo-Lodge, The Color of Law by Richard Rothstein, and How to be an Anti-Racist by Ibram X. Kendi filled our Amazon carts and library holds. 

These days, many of those books have quietly disappeared from the shelves. For sure, there are those who continue to fight for racial equality. But the winds have changed, with some companies - like Conde Nast - landing on one side, while Google, Meta and Amazon disappear from the horizon. 

It’s easier to flip through beautiful images and call it a day, than to be a part of real, diverse communities.

It might seem obvious that brands are not the best source for our moral formation. But the fact is that many of them see themselves as culture-forming and mission-driven. If you don’t have something else to help form your idea of what the world should look like, why not Vogue, with its picture-perfect editorials, or Google, with its future-facing innovations? 

For me, my beliefs in diversity and racial justice come from something stronger: my Christian faith and the many Black men and women globally who share this faith with me. It was my reading of Black Liberation theologian James Cone that first showed me the depths of beauty I could gain by understanding my faith through someone else’s perspective. Cone was famous for his book which drew parallels between Jesus’s death on the cross by Roman crucifixion, and the deaths of many Black men by lynching in the American South. Cone stopped me in my tracks, making me rethink a key symbol of my faith. He said this: 

“The cross has been transformed into a harmless, non-offensive ornament that Christians wear around their necks. Rather than reminding us of the “cost of discipleship,” it has become a form of “cheap grace,” an easy way to salvation that doesn’t force us to confront the power of Christ’s message and mission. Until we can see the cross and the lynching tree together, until we can identify Christ with a “recrucified” black body hanging from a lynching tree, there can be no genuine understanding of Christian identity in America, and no deliverance from the brutal legacy of slavery and white supremacy.”

It won’t make it into a Vogue editorial anytime soon– but maybe that’s the point. 

A faith-based belief in justice comes with challenges. It can feel tiring to face a troubled history of racism in a religious institution. Existing in diverse, faith-based communities brings everything from awkward cultural differences to true and genuine disagreements. The global Anglican communion faces tension between white, liberal progressives in the UK who want to celebrate gay marriage in the Church of England, and an assemblage of Christians of colour in the Global South who maintain strong convictions about traditional views of marriage and gender. Our faith in Christ is the anchor that holds us together. But these are real disagreements; they’re not trivial, and there’s no easy way forward. 

It’s easier to flip through beautiful images and call it a day, than to be a part of real, diverse communities. And this is why we can’t rely on people like Anna Wintour to form our vision for the future. As nice and important as it is to promote diversity in models, photographers, and designers, ultimately Vogue will be shaped by what its editors and publishers think will sell on the newsstand.  

This is my plea for us all. Let’s not let the shifting tides of any company– Meta or Vogue– decide our ethical convictions towards justice. Let’s rely on something stronger.

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