Reduce inequality, feed the poor… With taxes?

6 Dec

Caring for the vulnerable: it’s a familiar idea for most Christians – that those among us who can do so, should do what we can for the needy.

“For there will bever cease to be poor in the land. Therefore I command you, ‘You shall open wide your hand to your brother, to the needy and to the poor, in your land.’” Deuteronomy 15:11 ESV

Often, this takes the form of charitable giving: donations of money online or by way of street collections, emptying our wardrobes of unwanted warm clothing to be shipped off to refugees in need, time and provisions given to foodbanks. And thank the Lord for all these things – lifelines, all of them, and evidence of love in action.

Now although many of us don’t think of it in these terms, taxation has just as much potential to fulfil that role: to be a way of giving a portion of what we have, to be used in the care of those who have needs. We might not always be enthusiastic about the ways in which governments choose to use our taxes, but it’s the system we have and an important part of our economic and societal system.

It doesn’t always function that equitably, though. Right now, the highest taxes (as a proportion of peoples’ overall wealth) tend to fall on the least wealthy; in particular, on those whose income comes from work, as opposed to dividends, interest or rents from their wealth. In addition, the very wealthy often have access to complex tax planning schemes, which allow them to avoid paying the taxes that ordinary people (without well paid accountants and advisors…) are subject to.

This is a long way removed from what’s fair, what makes for a well-functioning economic system, and – we’d suggest - what’s Godly. That’s why at Church Action for Tax Justice, we’re asking people to join us in asking the government to introduce new wealth taxes. Not only would this enable the rich – many of whom have benefitted financially from the pandemic - to pay a fairer share of taxes, and help fund the public services that many people so desperately need; it would also help to slow the rising inequality that bedevils our society.

At CATJ, we’re planning a focussed campaign on the issue of wealth taxes in 2022, with the aim of raising awareness and strengthening calls for government action. In the meantime, however, we’re asking people who share our vision of a fairer, kinder tax system, to sign up to our Wealth Tax Pledge.