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