Ever since I wrote my book 'The Joy of Tax', I have argued that there are six reasons to tax, none of which have anything to do with raising revenue to fund central government in a country like the UK.
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Note: Typos in boxes 1 and 4 have now been corrected.
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Editor’s note: You never apologised for calling Chris Packham a commie, and this is another AI-generated piece. You are blocked.
Very good
In block 8 I am not sure of the reasoning. It seems to me that tax was raised historically on people who had no say in the monarch’s or parliament’s policies. In a fair system one would expect these two things to go together but is there a causal link?
The evidence of research – admittedly in Africa, where at one time it was easier to find deeply contrasting states, is that this claim is true. It was done by Mick Moore at Sussex University. From observation, I think it also true.
It’s logical enough to me that if people are expected to participate in the government’s process to help manage the effects of its spending then they will also expect to have a say in what that spending is directed towards. If they aren’t given that say, they may feel aggrieved and push the system to make concessions and become more democratic (a sentiment historically captured in the slogan “no taxation without representation”?) That could be your causal link?
That will do nicely, Sir.
On issue 8, now that’s an interesting one………….there is a ‘social levelling’ element in taxation that also underlines that a democracy/form political order is in charge – that before the tax/law authority we are all equal concerning the principle of tax? Maybe Box 8 needs to quickly refer to previous boxes stating the benefits to be less ‘abstract’?
Just a thought or two.
How would you word it?
OK, let’s see……………I have responded very quickly, but my starting point was the problem of not paying tax and working from there – trying to keep to 4 bullet points only. I am not precious about it:
Tax a is mutually beneficial relationship between the citizen and the state – it makes all of us – the state included – accountable to each other. Accountability is a fundamental part of democracy
We all benefit from the things tax does for us above by taking part in the tax system.
Tax also creates equality as we all have to pay, and are we all equal before the principle of tax (law).
Tax legitimises those who pay and legitimises those who are paid. That is what makes a democracy, and democracy is what makes a country fit to live in.
Let me work on that for an update….
Box 4, second bullet point doesn’t quite parse: If too much money chases too few goods, and prices rise. That is inflation.
If you’re still making edits, I can suggest three alternatives:
If too much money chases too few goods, and prices rise, that is inflation.
If too much money chases too few goods, then prices rise. That is inflation.
If too much money chases too few goods, prices rise. That is inflation.
And I would say you’ve definitely succeeded here. I’ve often read (or skimmed through) your explanations of tax before, but it’s always felt a bit dry. Whereas this format, if not warm and cuddly, does make it relatable!
Thanks. I changed to option 3, and I admit I then saw you suggesting it.
I really should use AI more!
This is such a good summary of the reasons for central government taxation that I’ve been hesitating all day about whether to offer a few amendments but in the end I found I couldn’t let it go. There’s a couple of words or phrases that, though not actually implying anything incorrect, might easily lead some readers to infer something wrong.
In point 3 within box 4 you say “Tax pulls money back”. If I didn’t know any better, I might infer from that phrase that money is pulled back to the government which can then spend it. Perhaps you could say something like “Taxes are debts we incur in response to government legislation. As each tax is paid the relevant debt is cancelled and the amount of money concerned ceases to exist, reducing the inflationary pressure” Two sentences; so maybe two bullet points? (I expect that with or without AI, you’ll be able produce something more succinct than I have.)
Box 5 says Tax redistributes income and wealth. One might naively infer that the amount of tax paid by those who can pay more is money paid to the government and in effect distributed to the less well off. How about “evens out” in stead of “redistributes” in the heading and “helps to equalise” in point 3?
Redistributes is clear. Evens out is not. Sorry.
And I see your first point but the constraint is words. I used 4. That is the suave available. What are your 4. These things are hard, for precisely these reasons.
But thanks for caring.
I think it is a really good explanation that we can give to those who cannot see anything but the household purse in action. Very helpful.
PSR says ‘we all have to pay’ but clearly many do not pay.. I assume the consequences of these thieves are for another topic/day?