Friday, December 2, 2011

We Need To talk About Tax

With apologies to Lional Shriver

'A nation's tax system is often a reflection of its communal values or/and the values of those in power. To create a system of taxation, a nation must make choices regarding the distribution of the tax burden—who will pay taxes and how much they will pay—and how the taxes collected will be spent. In democratic nations where the public elects those in charge of establishing the tax system, these choices reflect the type of community that the public and/or government wishes to create. In countries where the public does not have a significant amount of influence over the system of taxation, that system may be more of a reflection on the values of those in power'.
(Wikepedia)

This is not an academic post. I think that we often write for ourselves and fellow travellers on  these pages and this is not about stating the bleedin obvious to people who already have a far more articulate and informed method of relaying this message.

I have been following the debate on various sites in relation to the Claiming Our Future/Siobhan O Donaghue piece on taxing the wealthy. Leaving aside the usual suspects coming from the Right, the commentary from 'civilians' as I might call them for these purposes, tells me that 30 years of Thatcherism and uniform commentary from most media outlets has had the desired effect of conditioning people on the issue of taxation.

Neoliberalism has decreed that taxes equal theft. Of course they mean taxes on income, wealth and property. Indirect taxes are ok as long as they aid business. VAT disproportionately effects those on low or average incomes. Allowing the rich to keep their 'own' money by cutting or abolishing direct taxes gives an obvious outcome. Reducing direct taxes for the rest of us allows us to spend on services that were once provided through said taxes (usually through the public sector) on, well , whatever we want really. Sometimes it is on health and education services ( provided by the private sector, needless to say) to give us an advantage over our fellow citizens, or else on other consumables and/or services and service products provided by...you guessed it.

The debate about specific tax proposals is an important one. Points are well made and arguments effectively put within the paradigm that we are in. That must go on. However, given the amount of deliberately fostered misunderstanding about the rationale of taxation and the role of the public/state sector, what is needed is a long war strategy - one that begins to address the basics again - a process of conditioning if you like.

Those who come on to scorn the notion of a wealth tax need to be challenged on the basics as well as the specifics. All of this with an eye to spectators.