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Diary of a (Maybe) Retired Pastor

Tag: Christians and tax

  • The Most Hated Tax

    mayberetiredpastor

    The Most Hated Tax

    25 If anyone of your kin falls into difficulty and sells a piece of property, then the next-of-kin shall come and redeem what the relative has sold ….  28 But if there are not sufficient means to recover it, what was sold shall remain with the purchaser until the year of jubilee; in the jubilee it shall be released, and the property shall be returned.

    Leviticus 25;25-28 The Old Testament

    The most hated tax in the UK is, it seems, inheritance tax (or, estate duty). This is the tax paid on the inheritance passed on by parents to their children. The success of the right wing media in embedding this antipathy amongst the general population is impressive and rests on the narrative that the inheritance we pass on is the result of the hard work of the parents over their working lives. It’s their property. It feels like legalised robbery. What is never emphasised is that the majority of people will not have to pay any inheritance tax because no tax is payable below £325,000 (or £500,000 if you pass your home on to your children). Only those who have more than this when they die will have to pay any tax. The majority of people do not have this kind inheritance to pass on. What is also never said is that inheritance tax is one of the most effective ways in ensuring that extreme wealth is released into the wider economy rather than being hoarded by a small minority. It is the reason why the power and privilege of the aristocracy was broken in the last century thus enabling general living standards to rise and promoting a more equal society.

    The year of the Jubilee (referenced above) is usually treated as an interesting but obscure provision in the Bible for the ancient people of Israel. Every 50 years, any land purchased had to be returned in its entirety to the original owners. Wealth accumulated by the minority could not be held in perpetuity and passed on to their descendants – it had to be redistributed back to the people. It was, in essence, a 100% inheritance tax! The wealth of the land was to be equally shared so that every Israelite had the opportunity to prosper.

    By and large, Christians are just as antipathetic to tax, inheritance tax in particular, as the general population. But the law of the Jubilee challenges that antipathy. If you are a Christian who professes to take the Bible seriously, and believes that its provisions are relevant to today’s society, then the law of the Jubilee should give you pause for thought: Should you reevaluate your antipathy towards inheritance tax?   It is not simply an effective tax it is a divinely ordained tax and its presence as part of our taxation system should be welcomed as an example of kingdom ethics at work in our modern society.

    The Jubilee law is part of the Holiness Code in Leviticus. It begins with the call to be holy because God is holy (1). Christians are called to reflect God’s character not only in their personal lives but also in the society that they build. The UK Chancellor will very shortly present the first budget of the new government. It is widely anticipated that changes to inheritance tax to raise more income to fund essential public services will be included. How will Christians respond? Will we raise our voices in complaint at more taxes and threaten to leave the country, or will we welcome the alignment of public policy with biblical values and the greater reflection of God’s character in society?

    1. Leviticus 19:1-2

  • Why Is Tax Bad?

    mayberetiredpastor

    Why Is Tax Bad?

    4 for [government] is God’s servant for your good. … 5 Therefore one must be subject, not only because of wrath but also because of conscience. 6 For the same reason you also pay taxes, for the authorities are God’s servants, busy with this very thing.

    Romans 13:4-7

    41 He sat down opposite the treasury, and watched the crowd putting money into the treasury. Many rich people put in large sums. 42 A poor widow came and put in two small copper coins, which are worth a penny. 43 Then he called his disciples and said to them, ‘Truly I tell you, this poor widow has put in more than all those who are contributing to the treasury. 44 For all of them have contributed out of their abundance; but she out of her poverty has put in everything she had, all she had to live on.’

    Mark 12:41-44

    This week’s political headlines in the UK have been dominated by the accusation that the Labour party’s spending plans would result in families having to pay an extra £2000 in tax. Apart from the dubious method of calculation and the sleight-of-hand  trickery to  make it seem as bad as possible, the real question it throws up is why should this be considered a viable method of attack by one party against another? That it is so considered is clear, Kier Starmer and the Labour Party have been vehemently denying this claim all week.

    We have a very poor and corrosive attitude to tax in our political culture. Even amongst Christians it is generally held as a bad thing, at best a necessary evil. Yet the New Testament clearly defines it as a something required by God. Taxes are to be paid in order that the authorities can work for our good. Of course, the tax burden needs to be shared fairly across the population and it is very much the case that the tax burden is very unfairly shared in the UK. But none of this alters the fact that taxes in principle are to be welcomed for the benefit of all, as required by God.

    Fairness is an important principle in the levying of tax. One consequence of our corrupt attitude to tax is that government resorts to hidden taxes so that we cannot easily see how tax is being raised. So, the tax-free allowance has been frozen for the next several years by the present Conservative government and this will not be changed if the Labour Party were to be elected in July. It means there will be a significant increase in tax raised over the next few years, but those paying more tax will be those currently earning less than £125,140 a year. Everybody above that will not be paying any more tax! Similarly, proposals by the present Tory government to abolish inheritance tax (estate duty) only benefits those wealthy enough to have more than half-a-million pounds to pass on, those that don’t wouldn’t pay inheritance tax anyway.  Once again, the wealthiest carry less of the tax burden.  

    If we were able to have open and dispassionate debates about tax and spending we could see much better how the tax burden was being shared across society. But as it is, the Tory Party seek only to relieve the very wealthy of their obligations to the rest of society – and to do so in a way that the rest don’t notice it – and the Labour Party is too scared to address the issue openly.