Death and Taxes

picture credit: Playrights Canada Press

As loyal and obedient citizens and patriots, we do not question the taxes we pay. Just as in the saying attributed to Benjamin Franklin; ‘nothing is certain except death and taxes’; we observe ourselves enduring the prospect of dying with the same equanimity as an annual tax return.

Yet throughout history, many revolts by citizens have had their roots in what were perceived as ‘unfair taxes’ of which there have been many. The American revolution against the British crown in the 18th century is a prime example. Perhaps the distance between the taxer and the taxee gave courage to those who through boxes of tea into the sea in Boston harbour, but whatever it was, it signified a general feeling of ‘enough is enough’ where taxes were concerned.

Today, many so called ‘developed’ nations are experiencing a rise in the cost of living and stagnant wages. The effect is to squeeze the financial security of the poorest in society until they are eventually turned out of their homes and onto the streets.

Homeless on Venice Beach, California

Governments have a large part to play in this scenario and often are called into account for their policies. The citizens of France, at present, are being informed they will get their government pensions two years later than they expected. Those soonest about to retire will be most enraged by the decision along with those who resent the way the President Macron used parliamentary privilege to push the change through without debate…like a monarch.

The citizens who pay their taxes (and there are those who don’t in the so called, ‘black economy’ ) feel strongly that they should get some return on their life long financial support of their nation. Few question how much they actually pay the government over their lifetime. If they did they might be shocked.

If we take the United Kingdom as an example, when taxes are referred to in budgets this is assumed to mean income tax. There will be ‘a penny in the pound’ added to taxes or a penny taken away. It all sounds rather trivial but the reality is the opposite. Multiply that penny by pounds earned in a year and multiply that by the millions of tax payers and the figure is staggering.

Yet there are more feints going on, that hide the true worth of taxes to governments. Their favourite trick is to rename taxes as something else. In the UK there is a tax which is named ‘national insurance’. It is currently 2% of weekly earnings for those earning over £967 and 12% of weekly earnings for those who pay less. You will note that this is over 8% a month because the amount has been broken down into a 52nd of a year.

So if you pay say 25% income tax and add roughly 12.5% national insurance you pay 37.5% tax on your income.

It gets worse. Every time you buy most items, you pay ‘value added tax’. Another name for it is ‘purchase tax’. There are different levels for different items but let us say you pay 17.5% on average. That now brings your tax contributions to 55% tax; in other words over half your income.

In the UK it doesn’t stop there. Continuing the theme of disguising taxes by not using the ‘t’ word, there is the ‘community charge’. This evolved from what was originally named the ‘poll tax’ but was renamed by the Thatcher government for reasons that are hopefully becoming clear. A person who lives in the average B and D council tax set by local authorities in England for 2023-24 is about £2,000. So for a person earning £40,000 a year, pays an extra 5% tax to their local council bringing their taxation up to 60% of total income.

We are approaching the extraordinary, agreed approximately calculated, annual personal taxation being two thirds of total income in the UK.

You might add on an annual ‘car tax’ for those who own one, and now, various charges for entering ‘low emmision zones’. You might also pay the local council for using the parking space outside your home or at work. The car owner has long been a ‘golden goose’ for the Chancellor of the Exchequer.

Of course, there are particular life events that will shift your total taxation figure upwards. Inheriting money over a fairly low threshold, brings more tax in for the government treasury. The same happens when an item is sold that has gained in value, such as a house or painting. Agreed there are exemptions for houses if it has been a main residence but after a few years of say, renting out the house, this exemption expires.

To top it all, the ‘National Lotteries’ all over the world, constitute a ‘voluntary tax’ disguised as a chance to become rich…also known as gambling. Ironically, it tends to be the least able to afford a lottery ticket who feel most drawn to the one in x million chance it offers; in other words, ‘unlikely in the most extreme’.

Remember the certainty of death and taxes? Well of course there is a final tax on death, paid not by the deceased who tend not to have an opinion on the matter any longer, but by those who inherit the estate. There is a threshold of £325,000 below which this tax does no apply but above this amount the tax on the estate is 40%. An example from the government website;

Your estate is worth £500,000 and your tax-free threshold is £325,000. The Inheritance Tax charged will be 40% of £175,000 (£500,000 minus £325,000).

It could be a tidy sum given the rising cost of houses and number of home owners in the UK. It would certainly bring the tax rate paid over a lifetime above 66% for a moderately wealthy person. But even this lucky person might then have had to dispose of this assett and pay care home fees of over £1000 a week during the last few breaths of being a tax payer.

Using the example of the United Kingdom may be extreme because it has the high standards of social welfare that accompany and indeed are paid for by high taxes.

DescriptionPercentage of tax
Health21.9%
Welfare19.6%
Business and Industry14.4%
State Pensions10.1%
Education9.6%
Transport4.5%
Defence4.5%
National Debt Interest4.1%
Public Order and Safety3.9%
Government Administration2.0%
Housing and Utilities, like street lighting1.4%
Environment1.3%
Culture, like sports, libraries, museums1.2%
Overseas Aid0.9%
UK Contribution to the EU Budget0.60%
Where taxes are spent in the UK: pre-Brexit (note how the gains from leaving the EU are a fraction of the interest on the national debt, especially when the benefits of being in the EU are added.)

In the United States of America, those who can afford insurance against illness buy it because they will certainly not be to afford the high costs of health care. A person being told they need a new liver for $100,000 may not be able to pay and, as in the old joke; ‘will stop buying green bananas’.

There is no perfect system and to some extent one can change country if you do not like the taxation and welfare system. But where ever you live, in my view it should never to be taken for granted that governments are being open and honest about how much money they take from you, and how much loose change you get back.

An after thought; why don’t democracies offer voting for where taxes are allocated, rather than on the personality cult figures who present themselves randomly as representing you.

Means to an End?

There are two kinds of people alive today; the manipulators and the manipulated.

It is important to realise how we are manipulated and recognise it when we see it. In this essay only one method will be considered because it is easy to see.

There is an old saying; ‘the end justifies the means’. This encapsulates a very real problem, but the fact that the expression is so well known and easy to understand has in a way, bled the life blood from it. But if it was not still full of meaning, there would not be so many examples of it.

For instance; a world leader wishes to invade a neighbouring state. There are various reasons which might be; historical, to obtain economic gain, to bring freedom to enslaved inhabitants, to eliminate a threat of war, to change a bad government for a good one etc.

All or just some of these reasons are used to persuade a population of a moral need. Then comes the twist. In order to achieve the aim, means are used which are far more destructive than the supposed problem being eliminated.

President Putin’s invasion of Ukraine is an obvious example but let us look nearer to home, to that bastion of fairness and reasonableness, the United Kingdom.

Politicians promise to solve problems. In this case they promised to ‘take back control of our borders’ in the 2016 referendum on Brexit. A minority right wing party, UKIP, perceived ‘immigration’ as being ‘out of control’ and having a detrimental effect on the standard of living. This despite the economic rule that immigration is beneficial to a country and the history of United States of America being a prime example.

But ordinary people do not have degrees in economics and the far right politicians are well known to pick a ‘scape goat’ cause for a problem; the Nazi policies towards minorities in 1930’s Germany being a prime example.

All nations have problems with land borders. They are hard to control. But an island nation should have an advantage and so it should be with the UK. Given this ‘false problem’ of immigration, how can the government ‘take back control of it’s borders’?

A degree of problem solving skill is needed, a faculty that is not unfortunately taught in schools and universities, including it appears, Eton; one of the most expensive private (fee paying) schools in the UK.

It was thought that if the UK could stop people wanting to come to the UK from their own failing countries, a solution would be to stop their country from failing. This megalomaniac assumption suggest that a minor world power is able to solve problems in other countries.

Unfortunately, two thirds of the countries from which people flee to the UK are not in the European Union; countries like Afghanistan.

So voting to ‘take back control of our borders’ would largely, not be solved by leaving the European Union. La di dah.

In the case of Afghanistan, large amounts of money and human life had already been lost in trying to prop up an Afghan government and Army. History shows that complex tribal nations are almost impossible for successful intervention by third party states, and so it was in Afghanistan. The Americans decided to pull out their support, the Afghan government and Army collapsed and the power vacuum was taken over by the Taliban.

So it is obvious that removing the need to flee from a country is not in the power of any one nation or even a United Nations.

The rules of asylum state that this must be done in the first safe country entered. This however is absurd as a single country cannot reasonably take all the refugees from a neighbouring country, once a certain number has been reached. Italy is a good example where refugees from Tunisia arrive in boats in such numbers that the government cannot cope.

The European Union must take some of the blame for not taking an overview of it’s member states and allocating refugees, asylum seekers and immigrants in proportion to their ability to do so. Germany has taken a disproportionately large number compared to other EU nations, while Italy is begging for help. The problem perhaps was instrumental in the election of a right wing government there.

But let us return to the UK. Having voted to lose all influence over European Union policy by leaving, it weakened it’s influence in the countries through which immigrants pass. France is a prime example and now has to be given money by the UK to carry out border controls on the north coast of France, most of which will be ineffective as the majority of traffickers operate from the UK.

The problem is never clearly defined, as ‘immigrants’ have varied motives. The economic migrants used to help with harvesting seasonal crops in the UK and those have largely ceased to do this; crops have rotted in the fields as a result. Young Albanians work in the UK illegally and return with amounts of money that it would take decades for them to earn in Albania.

Genuine asylum seekers are not given safe routes by the UK government, excepting Ukrainians and Afghans for whom there is a system on line to get a visa.

Instead of extending this humane approach to all asylum seekers, who make up 80% of ‘illegal immigrants’, the UK government have put forward another idea.

This ‘means to an end’ is intended to be so harsh that it will dissuade those seeking asylum, many of whom are forced to arrive in unsuitable small boats on UK beaches. The government’s idea is to treat them all as having entered the country ‘illegally’ and to send them to a third country; Rwanda.

In doing so the government of the UK are choosing to ignore the human rights of the asylum seekers and ignore the ruling of the European Court of Human Rights, of which the UK is still a member (even though many who voted for Brexit did not realise this political independence of the ECHR).

Ironic that the UK had done much to promote Human Rights within the European Parliament when it had influence to do so.

Instead their ‘solution’ to immigration by asylum seekers is to class them as criminals for entering the UK illegally, and sending them to Rwanda.

Here, clearly, the end is being used to justify the means for if anyone should question why this policy is being followed the reply by government politicians such as the Chancellor Jeremy Hunt is words to the effect, ‘would you rather they drown?’

By concentrating the emotional decision on the horror of women and children drowning in a cold sea, the appeal to the faculties of their opponents is not rational but emotional.

The rational ‘problem solving’ has been skipped over and a ‘solution’ being tried that mostly works politically. Is it not rather being seen to act on an election promise in readiness general election next year?

What will happen to immigrants once they arrive in Rwanda is hardly advertised. No doubt the Rwandans have been given money as other advantages to their nation are doubtful. At worst the money supply will stop in a few years after a change of government and the Rwandans will get their machetes out again.

Thus it can be seen that horror and inhumanity is being ‘justified’ as being the only solution to ‘saving people from drowning in boats in the English Channel’.

The tail is most certainly wagging the dog and this is how our own thoughts can be manipulated to think what is happening is ‘okay’. Bad things are ‘justified’ as ‘an evil to stop a worse evil’. In reality, it’s an evil instead of a humane solution.

Should we not be instructing the problem solvers in ‘problem solving’? The books of Edward de Bono have been used by business leaders to teach this skill and the reader is recommended to study them if a life in politics is being considered.