Taxation frustration

"Let me tell you how it will be," the song begins with a thump of drums and twanging of guitars. "There's one for you, 19 for me... If you drive a car, I'll tax the street. If you try to sit, I'll tax your seat. If you get too cold, I'll tax your heat. If you take a walk, I'll tax your feet... 'Cos I'm the taxman!"

Written by George HarrisonThe lead guitarist of English band The Beatles. , 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 new measures introduced by Harold WilsonThe UK's Labour party prime minister from 1964 to 1970 and 1974 to 1976. 's Labour government, 95% of their earnings would go on tax. As a result, they were in real danger of bankruptcy.  

Harrison was all the more indignant because of the realisation that a lot of their money was being spent on arms manufacturing.

Complaints about tax are as old as government itself and have led to popular uprisings and civil wars. In Giuseppe di Lampedusa's classic novel The Leopard, set in 1860s Sicily, a herbalist exclaims:

"I go and gather the grasses, the holy herbs God made... I dry them in the sun which belongs to everybody and I grind them myself... What have you people at the town hall to do with it? Why should I pay you 20 lireThe lira (plural lire) was the currency of Italy between 1861 and 2002, replaced by the Euro.?"

Britain's Conservative government sees tax as a key issue in the next election. As a result, it attaches huge importance to Jeremy Hunt's imminent budget.

According to Hunt, "All Conservatives believe that 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

They argue that the more people can keep from what they earn, the harder they will work and the more money they will invest in business. This is therefore the most efficient way of making the economy grow.

But the government needs tax to pay for the services it provides, and 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 that these are of paramount importance. Scandinavian governments in particular are known for charging high taxes to pay for improved health care and social care.

On average in 2021, Scandinavian countries' tax revenue was 45.1% of GDPShort for Gross Domestic Product, the measure of all the goods and services produced inside a country.. Denmark's was the highest of these at 46.9%.

The figure for Britain was much lower, at 33.5%. Among other OECDThe Organisation for Economic Co-operation and Development. countries, Mexico was lowest of all at 16.7%. ²

Hunt is under pressure from his fellow Conservatives to reduce income tax by 2p in the pound. They believe that this could reverse the fortunes of a party trailing far behind Labour in the polls.

Their adversaries argue that it would be irresponsible to cut taxes when so many public services are underfunded. Tax cuts, they add, help individuals only a little and hurt governments a lot. A 2p cut in income tax would save the basic tax payer a few hundred pounds a year, but take £14bn out of the public finances.³

In an article for Tax Justice Network, Philip Goff argues that "There is no justice in the fact that the pre-tax income of a City banker is many hundreds of times the pre-tax income of scientist working on a cure for cancer." Taxing the rich more than the poor is a step towards righting 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.