4 Taxation - do we need it and is it currently fair?

Money governs every aspect of society; taxation is the tool we use to raise money. Do we have to have taxation? Yes, of course we do. There are certain areas of our society that we have responsibility for as a group if we want to survive; transport, communication, education, defence and so on. Our way of getting these things done is by payment. Everyone pays something towards the pot to keep our infrastructure in place - taxation.

Understanding that we have to have taxes, now we have to work out a fair system of collection. I think our system has become complicated over time as society has evolved. There are numerous taxes, direct, indirect and hidden, and it seems to me that whatever way you look at it, some unfortunate section of society ends up paying more than the rest. If it’s not fair it will generate ill-feeling, resentment and eventually, social disorder.

My thought is that it’s only fair if it’s seen to be fair and it can only be seen to be fair if it’s simple.

• Is it currently fair? Not to my mind. Is it fair that someone living in one part of the country should receive benefits that someone elsewhere in the country isn’t, when they are paying taxes for the same services? Of course not!

• Can it currently be seen to be fair? Again, not to my mind. Some people are eligible for tax relief, others aren’t. Can we see who these people are, why they are eligible for relief and be sure we’re not paying more than our share? No!

• Is it simple? Guess what – not to my mind!

So, what do I think would be fair? Well, put at its very basic, purely from a fairness point of view and accepting that nothing in this life is completely fair for everyone I would say…

…we should pay on the basis that we are all inconvenienced to the same degree.

Paying a set amount is clearly not fair. £10 a week, for example, out of the pocket of a pensioner could be life threatening if it meant they couldn’t eat or keep warm. £10 a week out of the pocket of a millionaire simply wouldn’t be noticed.

But is paying according to a scale – a higher percentage the more you earn, or paying nothing if you’re earning at the bottom of the pay-scale - any fairer? High earners lose 40% of their income. Not as life threatening as £10 for the pensioner but what incentive is there to stay in the UK and keep contributing? What incentive to work harder if the more you earn the higher the rate of tax? On the other hand, what incentive to work at all if someone else will pay for you?