Taxation frustration

"Let me tell you how it will be," the song begins. "There's one for you, 19 for me... If you drive a car, I'll taxMoney workers pay to the government to pay for services like roads and hospitals. the street. If you try to sit, I'll tax your seat."

Taxman was recorded by the BeatlesAn English rock band formed in Liverpool in 1960, and is widely regarded as one of the most influential bands of all time. They played for ten years between 1960 and 1970, with Paul McCartney as co-lead vocalist, bassist, and songwriter. in 1966. They had just learned that under Harold WilsonThe UK's Labour party prime minister from 1964 to 1970 and 1974 to 1976. 's LabourBritain's main left-of-centre political party. government, 95% of their earnings would go on tax.

People have always complained about tax. The ConservativesA traditionally right-wing or centre right political party in the UK. Members are sometimes called Tories. see it as a key issue in the next election. So chancellorThe Chancellor of the Exchequer is the minister responsible for the British government's economic policy. The job is often regarded as second in power and important to that of the prime minister. Jeremy Hunt's budget is hugely important.

According to Hunt, "The state has a moral duty to leave as much money in people's pockets as possible because it belongs to the people who earn it."¹

Conservatives say that the more people can keep from what they earn, the harder they will work - and the more money they will investPut money into. in business. It is the most efficient way of making the economy grow.

But the government needs tax to spend on the services it provides. Left-wingA range of beliefs that are the opposite of right-wing ideas. People on the political left usually believe in collective responsibility and the good of society. They often, though not always, support higher taxes and a more active, interventionist government. politicians believe it should spend a lot.

Countries such as Denmark are famous for charging high taxes to pay for things like hospitals.

Hunt is under pressure to reduce income tax by 2p in the pound. People in the Conservative party think it would give them a chance of beating Labour.

But their critics say it would be terrible to cut taxes when schools and other public services desperately need more money.

They say that tax cuts do not help ordinary people much and hurt governments a lot.

A 2p cut in income tax would save the basic tax payer a few hundred pounds a year. But it would leave the government with £14bn less to spend.²

In an article for Tax Justice Network, Philip Goff says it is unfair that a banker can earn hundreds of times more than a scientist working on a cure for cancer. Taxing the rich more than the poor is one thing that can be done to right that injustice.

Is tax theft?

Yes: The government's authority comes from its citizens. They can only give it rights they themselves have. Since they cannot take other people's money, it is also a crime for the government to take it. 

No: Tax pays for things that everyone needs, from roads and schools to hospitals and fire brigades. So when you pay tax you are doing it for your own benefit, even though other people spend the money.

Or... Some forms are but others are not. Death duties, for example, are totally immoral because they tax money on which tax has already been paid, by the dead person when he or she was still alive.