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Diary of a (Maybe) Retired Pastor

Tag: taxation

  • 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.

  • I Don’t Do Gift Aid Anymore

    mayberetiredpastor

    I Don’t Do Gift Aid Anymore

     This is also why you pay taxes, for the authorities are God’s servants, who give their full time to governing. 7 Give to everyone what you owe them: If you owe taxes, pay taxes; if revenue, then revenue; if respect, then respect; if honour, then honour.

    Romans 13:6-7

    We are in the fortunate position of being able to make donations to various charities. Of course, we give to our church and have always Gift Aided it, but we also try to support other causes. Lately, I have ceased ticking the Gift Aid box on the donation forms. Gift Aid is an option to include the tax that you would have paid on the donation so that instead of going to the government it goes to the charity. It occurred to me that the more we Gift Aided, the less of our taxes would be retained by the government and, hence, less would be available to fund public services. At a time when all our public services are financially compromised the government needs all the taxes it can get to keep them going! So, I have stopped adding Gift Aid to our donations.

    We need a different national conversation around tax. Our major political parties are locked into a “reduce taxes at all costs” paradigm. As a result, we see our public services crumbling and the government constantly finding new ways to increase tax revenue without appearing to do so. Consequently, our tax system is unfair, unbalanced, and inadequate. And it is opaque in the extreme! Certain sections of the media will stridently trumpet the historically high rates of taxation we are experiencing but (with the exception of one or two bodies) fail to point out that our taxation is no heavier than the average of similar European countries even at these historically high rates. The only winners of our tax system are the extremely wealthy.

    Our politicians treat us as children believing that we cannot hold an intelligent and mature conversation about the cost of public services and the amount of tax that needs to be raised in order to have good public services. They believe that we can be fobbed-off with constant reductions in general taxation and not make the connection with failing public services. Taxes have to rise and the extremely wealthy have to pay more in taxes.  This has to be done openly and transparently (i.e. income tax) and not through Faustian mechanisms designed to obfuscate and deceive. Of course, restoring public services and improving public services after years of deliberate financial starvation in order to fund tax-cuts cannot be done overnight. The Junior Doctors’ dispute is testament to that – restoring a 35% cumulative loss in pay is not feasible overnight but the present government, dogmatically wedded to reducing taxes, cannot provide a long term path to restoration that  might resolve the dispute.  But will the Labour Party, Keir Starmer and Rachel Reeves in particular, be bold enough to grasp the nettle and start to talk honestly about taxation and the cost of restoring public services? So far, the signs are not encouraging.