A taxing question

"Is it a good time to be rich in the UK?" The reporter looked quizzically at Britain's new 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.. Kwasi Kwarteng had just announced his biggest gamble yet, live on television. Two days after announcing the biggest tax cuts in 50 years, Kwarteng was doubling down. "There are more to come," he declared. 

The British security services have a maximA short statement about a general rule. - the UK is only four missed meals away from anarchyA situation in which there are no rulers. The term can be used to describe complete political chaos or mob rule, but those who call themselves anarchists generally believe in mutual aid and cooperation, not a war of all-against-all..¹ If they are right, by 2023 the country could be close to chaos. Experts predict that by January, 53 million will be in fuel povertyWhen a household spends more than 10% of their income on heating or is unable to afford to adequately heat their home.. There is no doubt: the cost of livingThe money that someone needs to afford basic food, housing and clothes. crisis is hitting people hard. 

The British government has responded with a gamble: cutting taxes.

Many are delighted. It is "refreshing to hear some Conservative policies, at last," says one ToryA member of the Conservative party.  MPMember of Parliament. There are 650 MPs representing people in different areas of the UK., Richard Drax. "We've actually put more money into people's pockets," insisted Kwarteng yesterday. With less of their incomes sent to the government as tax, Britons can spend more and boost the economy. 

But others remain deeply sceptical. Many of the tax cuts focus on people with high incomes. Former Labour leader Jeremy Corbyn said it was a "gift for the few and a slap in the face for the many". 

For many people, tax is a dirty word. We pay tax when we earn, when we save and when we spend. Nearly 30 million people in the UK are in the Pay as You Earn (PAYE) system, which means their taxes are deductedSubtracted from a total. from their pay before they ever even see it. 

Across the country people from all walks of life discuss ways to legally pay as little tax as possible. Figuring out what expenses are tax deductibleExpenses that can be subtracted from total income on a tax form. It reduces the amount of taxable income, and thus taxes owed. is almost a game.

Teams of accountants throughout the land specialise in advising companies on how to pay less tax. There are companies that do their work in Britain but are registered in tax havensA place which deliberately lowers its taxes to attract foreign investors. like Delaware or Dublin where they effectively pay less than half of the current 19% UK corporation taxA tax on the profits of a business..

These same companies benefit greatly from tax revenue. Their CEOsChief Executive Officers. The highest-ranking person in a company. may send their children to state schools or use Britain's National Health Service. And they will most certainly use roads, paid for using tax revenue.

What would a country be like without tax? The roads would not be fixed, the bins would remain unemptied and essential services, such as the fire brigade, could not exist. Some say, therefore, that people should pay taxes with joy in their heart, knowing that to do so is to join a club with benefits.

And instead of devising complex and devious methods to pay as little as possible, companies, too, should be happy to pay taxes and benefit from roads and railways. 

The singer Paul Heaton once offered to nationaliseTransfer from private ownership to government ownership. himself. Every time his songs were played on the radio, "the state would take the money and put it back into improving our living standards". 

The world is divided. There are those who believe tax should be cut and avoided, leaving people with as much of their incomes as possible. Others say tax is a social responsibility and those who pay high amounts should be praised for saving everyone from anarchy. In the UK, the former are in charge.

Yes: Without tax the country could not function. It allows us to look after the vulnerable and provide essential services free at the point of use. People should pay taxes with joy.

No: It is better that people pay only for the services they need. High taxes stop people from spending the money they earn. Lowering them will help boost the economy.

Or... The tax system should be fairer and there should be more debate around how our taxes are spent. If people had more of a say in what their taxes were spent on they would be more willing to pay them.