Column

Comment

Gaza

Israel

Middle East

22 October 2023

5 min read

What it really means to take a stand

George Pitcher explores the challenge in applying moral principle to the savage international crisis that is the Israel-Hamas war.

George Pitcher

George is a visiting fellow at the London School of Economics and an Anglican priest.

Two country leaders sit in chairs next to each other with their country's flags behind

President Biden meets Israel's Prime Minister.

The White House.

The first fortnight of the Israel/Gaza war has seen distinct phases in the West’s response. Initially, our leaders united in their resolution that Israel had a right to defend her borders. Of course she did – tell us something we don’t know.

The danger then arose, after they had projected her flag onto their government buildings and sent armaments to assist her, that we would look away as Gaza was flattened in reprisal for Hamas atrocities committed on Israeli soil.

We didn’t look away, thank God. The missile strike on the Gaza hospital (whoever caused it) marked the second phase of our horror at what was unfolding in a city under siege. It meant the US president Joe Biden arrived in Israel with a more conciliatory tone: “While you feel... rage, don’t be consumed by it.”

On his copycat visit, UK prime minister Rishi Sunak was more hawkish: “We will stand with you in solidarity… and we want you to win.” Well, not all of us, actually; he apparently hadn’t noticed, or chose to ignore, loud pro-Palestinian British demonstrators. Sunak’s foreign secretary, James Cleverly, evidently had noticed the humanitarian catastrophe unfolding in Gaza and urged “restraint”.

A scorched-earth policy in Gaza in reprisal for the massacre of families in Israel cannot be countenanced and we, in the West, should say so and, largely, are saying so.

Overall, in the past few days, Israel seemed to be grabbing global opprobrium from the jaws of western support. In a turbo-charged burst of whataboutery, Jewish commentators have been reminding us of the unspeakable horrors of the Hamas invasion that sparked the conflict.

Our respectable, mainstream media don’t need reminding. They repeat the details of Hamas’s crimes against humanity relentlessly as further harrowing details of them emerge. But the story has developed, if not moved on.

The consequent challenge is to apply moral principle to this savage international crisis. The criteria of Augustine’s “Just War” are a good place to start. One of the sanctions for waging such a war is that it is proportionate. A scorched-earth policy in Gaza in reprisal for the massacre of families in Israel cannot be countenanced and we, in the West, should say so and, largely, are saying so.

Biden said so in Israel. In doing so, he showed leadership in the best traditions of the West’s Judeo-Christian heritage. Graham Tomlin has spelt out here our urgent need for such leadership and it would be only faithful to meet that challenge.

To say we stand with Israel, as Sunak does, is an incomplete statement in this regard. It needs to be followed by vocalising what we stand for.

From a perspective of faith, the first thing to say, almost to get it out of the way, is that prayer is vital under these circumstances – it never changes an impassible God; it always, every time, changes us to be more effective agents in the world. What we call the Holy Spirit changes events through us. So our agency is as nothing if it remains unimplemented. The Christian voice needs to be articulated in action as well as word.

To say we stand with Israel, as Sunak does, is an incomplete statement in this regard. It needs to be followed by vocalising what we stand for. And, whatever that is, it can’t be the destruction of a people as the price of the defeat of its terrorist leadership.

If that were the case, the Allied advance on Berlin from the west at the end of the Second World War would have more closely resembled the horrific brutality of the Soviet advance from the east. There was a moral assumption on our part then that the German people were not to pay, beyond reparations, for the crimes of Nazism.

To apply similar moral principle to the current crisis, it’s absolutely right to defend Israel from Hamas, but it is right also to defend Palestinians from the crimes of Hamas. To fail to make such a distinction isn’t solely inhumane, it’s racist.

Gospel injunctions, in truth, can ring hollow in these circumstances. To suggest, on the Gaza border right now, that we should love our neighbours as ourselves would sound tin-eared and trite (yet it doesn’t make it any less true).

Nor is anyone likely to suggest that Israel turns its other cheek – the Christian cries out for justice as well. But we might be bold to say that the way to exact that justice is not an eye for an eye and a tooth for a tooth.

Challenges to a Christian response to the conflict are twofold. First, Christian witness is woefully diminished on the very ground on which Israeli military boots currently stand and where they are likely to march very soon.

It’s been a fluctuating historical demographic, but the Christian population across the holy lands of the Middle East has declined from about 20 per cent a century ago to just 5 per cent today. There is now less than 2 per cent of the population of Israel that is Christian. Gaza has been a hostile environment for Christians since the Hamas takeover in 2007; out of a population of 2 million, perhaps 1,000 are Christian.

This is not to suggest that Christian presence alone could change the course of Israel-Palestine armed conflicts. It didn’t prevent the Six-Day War in the 1960s, after all, when it was far larger, nor during intifadas since. But, as I have written before, the Christian quarters in Jerusalem have maintained an uneasy stability between Judaism and Islam and their decline has made the city more volatile. As a buffer to conflict, the Christian role is diminished.

The other complicating factor is Christian Zionism, a doctrine that holds that the founding of the state of Israel in 1948 is eschatological – that is, that the return of the Jewish people to the holy lands is a precursor to the “end times” and the second coming of Jesus Christ.

None of which is likely to comfort those suffering so dreadfully there. Perhaps, ultimately, we look for the holy voice in the wrong places. I don’t mean to misappropriate her faith or ethnicity, but I think of the traumatised young woman who survived the Hamas massacre at the Re’im Supernova music festival.

Asked on ITV News if she wanted revenge, she replied through her tears, quietly but firmly: “I don’t want revenge. I want peace.” There speaks the authentic voice of hope.

Explainer

Comment

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 Fletcher 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.