Justice through taxation

IS taxation theft or an exercise of citizenship? What do we get for our taxes? What is the correct balance between different forms and levels of taxation? Is it moral to conscientiously object to paying certain taxes?"

This teaser introduced the press release of the Catholic Bishops of England and Wales inviting journalists to their new publication, Taxation for the Common Good.

It follows on from the Bishops' Conference 1997 document The Common Good. The 40-page booklet, to be published tomorrow, explores the issues surrounding taxation, defining it as a "sign of our solidarity with one another and our humanity" and challenging Government to ensure that taxation is transparent, responsible, fair and efficient.

Britain's Catholic bishops have called on the government in particular and society in general to remember their "obligation to watch over the interests of the poor and most disadvantaged". The bishops said that "power is not distributed evenly in society" and that "some have greater wealth and some have greater need".

They are calling for "redistributive justice" through taxes "levied according to ability to pay" and for goods to be "distributed according to needs and necessities".

The bishops' statement calls on British taxpayers to recognise the "sign of our solidarity with one another and our humanity" in the payment of taxes, calling it a "sign of social health and a moral good".

Tracing the history of taxation, the document emphasises its function as a key way in which an individual takes part in political life and looks at taxation as a factor in defining "in a profound way, what kind of society we wish to live in".

In this context, the document explores the profoundly important issues around the individual responsibilities this implies. For example, should we be allowed to withhold taxes for policies which are against our conscience such as NHS abortion services or the production of nuclear weapons? Are some forms of taxation immoral? What does the citizen get for his or her money?

The document attempts to dispel the myth that public services paid for out of taxation are simply "parasitic on the wealth-creating sector" - the idea that the private sector really earns the money to pay tax.

The bishops call this a "false dichotomy" made clear "as soon as we reflect on the many things which go to make the 'wealth' of society, not least health, education, social order, social well-being, good housing".

It adds: "The dignity of the person is to be respected. The Church rejects any condemnation of those who depend on a safety net provided through taxation which judges them a burden. However, we bear in mind that (Church teaching) includes a warning about becoming too dependent on welfare and it is the responsibility of the state to ensure that this does not happen by assisting those on welfare benefits, who could be usefully employed, to seek work."

The bishops emphasise that the Government "has an obligation to watch over the interests of the poor and most disadvantaged because power is not distributed evenly in society".

However, they also questions the morality of certain developments in taxation, including progressive taxation, which, they argue "has become less progressive in the past 25 years with the increase in indirect taxes and the tendency of government to use them to generate revenue rather than raise income tax".

The document emphasises that justice must underlie any fair system of taxation. It says: "Redistributive justice means that tax is levied according to ability to pay and goods are distributed according to needs and necessities. It does not mean, therefore, that everyone should pay or receive the same, because some have greater wealth and some have greater need."

The bishops link the obligations of Government to consult on and levy taxes fairly, to ensure that such decisions do not inadvertently distort economic behaviour or undermine other socially desirable policies like pollution reduction with solidarity and justice, which, they say, are "theological and moral virtues".

"There is a modern-day fiction which makes many people uncomfortable with some of the claims of solidarity. This is that what we own and what we earn are obtained by our own unaided efforts and that, therefore, we have an absolute right as to how we use it and dispose of it," it says.

In truth, the document says, "in order to make a product and sell it for a profit, the company needs more than just raw materials. It also needs an educated workforce who has access to healthcare in a peaceful, ordered society. It needs roads and other infrastructure. There are also such intangible things as trust and honesty which reduce the costs of legally enforcing contracts. All of these are provided for by society." This, they say, is contributed to via tax.

A Christian Outlook feels that the document is of importance not only to English Catholics but should make interesting reading to Maltese ones, hence the somewhat extensive coverage we dedicated above.