Maria Exall writes:
In his Left Futures article
on the 7th April, Intense
Relaxation, David
Osland took John McTernan to task for advocating tax avoidance as a ‘basic
British freedom’ and for making reference to the political theorist Robert
Nozick and his argument for freedom from taxation in Anarchy,
State and Power (Basic Books, 1974).
The
ideological libertarianism of theorists such as Nozick is rejected by those on
that wide spectrum of political thought we know as social democracy, whether
left or right leaning.
However the discourse and principles of such an approach
are much more commonplace and pervasive in wider society, an ‘everyday
libertarianism’.
This everyday libertarianism overshadows our political debate
on tax and needs to be addressed by Labour politicians and progressive
campaigners if we are to win support for a more redistributive tax system and
for a Government with enough resources to support those in need and to rebuild
our economy after the financial crash of 2008 and Tory ‘austerity’.
It is a hard thing to do but we have to
critique the everyday libertarian assumptions that taxation is a drag on
creativity, innovation and enterprise.
This is really just a populist
representation of the neo liberal view of taxation.
To challenge these
assumptions we have to counter the underlying moral justification for this view
which is that we as individuals are entitled to our money (earned or unearned).
This view exists amongst many working people who do not have access to anything
like the levels of income or inherited wealth of David Cameron or Boris
Johnson, or indeed those listed in the Panama papers.
It is a view that
justifies a ‘minimal State’ and fuels a sceptical attitude to the Government’s
right to collect tax, thereby leaving the super-rich and unscrupulous
corporations untroubled.
We need to be clear that the libertarian
approach to taxation promoted by Nozick and others is, in the end, ethically
incoherent.
It is based on the assumption that pre-tax market outcomes are
just, that we have an unqualified moral entitlement to what we earn in the
market before government ‘interferes’.
In the real world of advanced capitalist
production however Government laws on regulation, competition and other
commercial practices are necessary for a market system and have a direct
bearing on the rate of profit.
There is no such thing as a just or justifiable
conception of a fair pre-tax income in such a system.
The
everyday libertarian approach to matters of taxation is based on the myth that
my money is mine in some innate or natural sense.
In their book The
Myth of Ownership – Taxes and Justice (OUP, 2002)
the philosophers Liam Murphy and Thomas Nagel articulated a moral and political
case for a social justice model of taxation.
This case directly challenges
libertarian conceptions of private property rights presumed by Nozick both in
theory and in practice.
Murphy and Nagel maintain that in order to establish
the appropriate design and implementation of a taxation system (and the
associated benefits and welfare systems), we have to consider the
socio-economic context of taxation policy and challenge the assumption that
aspects of the economic system are ‘natural’.
Rather than a solely rights based approach
they argue that the ethical justification for a taxation system should instead
be based on more general principles, such as what actually constitutes
entitlement to property and pre-tax income in a complex and interconnected
society.
A taxation system should take into account the equity of the
distribution of the social product between the private control of individuals
and Government.
But to consider tax justice in such a way we have to be clear
about the correct role and scope of the State, and be prepared to defend this.
The central issues of taxation are not about
how the State should appropriate and distribute what its citizens already own,
but about how the State decides what is private and what is public.
So a
taxation system cannot be founded in any fundamental way on the concept of
individual rights claimed against the State, as in libertarian political
theories, because the State is the very framework within which the individual
entitlement to property or income is to be determined.
It follows then that the scope of Government
cannot be limited by individual rights, though the role of Government maybe.
The political issues of the nature and range of public services, and therefore
the level of taxation needed to pay for these, become questions to be asked after
it is accepted that the State is entitled to determine the framework of
ownership rights.
Murphy and Nagel accept that individual liberty and personal
autonomy have value in any objective standard of human priorities, but maintain
that Government is a necessary ethical framework for both personal life and
civil society.
As Murphy and Nagel explain:
If political
debate were not over how much of what is mine the Government should take in
taxes, but over how the laws, including the tax system, should determine what
is to count as mine, it would not end disagreements over the merits of
redistribution and public provision, but it would change their form.
The
question would become what values we want to uphold and reflect in our
collectively enacted system of property rights – how much weight should be
given to the alleviation of poverty and the provision of equal chances; how
much to ensuring that people reap the rewards and penalties for their efforts
or lack thereof; how much to leaving people free of interference in their
voluntary interactions.
(Nagel and Murphy, The Myth of Ownership, p 177.)
This approach still allows for a broad range
of views on the justification of taxation policy, but fundamentally
re-orientates the ethical issues to be considered.
At present the power of Government in the UK
(national and local) to act effectively to promote a balanced and sustainable
economy and provide support for those most vulnerable in our society is
threatened by the most extreme cuts in public spending for a century, announced
in George Osborne’s budget.
Whilst some inroads have been made on his budget
plans we are still on course to have public spending slashed to only 35% of GDP
by 2020.
We can expect greater inequality and continuing attacks on working
class incomes and living standards.
Without a decisive and successful fight
back against these inhuman and cruel cuts in collective provision of health,
education and social services there will be almost inevitably be a regression
in our common consciousness of what Government is for, and what financial
support we are entitled to expect from our fellow citizens.
Everyday libertarianism about taxation aids
the shift in public consciousness at the centre of the Tory project, that is an
individualistic, everyone for themselves, sink or swim ethos which divides
working class people against each other.
This is evidenced in the demonization
of benefit claimants, the increase in hate crime against people with
disabilities, and of course immigration, racism, immigration, racism.
This
division allows the Conservative Party to deliver for their backers, the owners
of capital.
Osborne and Cameron, and indeed any future
Tory leadership team must be challenged on their tax policies by a Labour Party
sure of its moral principles.
They need to be exposed for their extreme and
illogical ideological view of the individual’s relationship to the State by all
rational people.
If this Conservative Government gets off the hook on the
ethical matters at the heart of taxation policy it will allow them to put into
practical effect Thatcher’s vision that ‘there is no such thing as society’.
We
cannot afford to let that happen.
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