Nobody likes paying tax. Though for most people and businesses, it’s an unavoidable and legal, and arguably social and moral, responsibility. However, there is an increasing misconception about the use of taxes and a disconnect in how wider society benefits from tax revenue as a whole. Part of this is derived from the flawed and ignorant perception that taxes fund public services that bear no relevance on people’s day-to-day lives, and welfare that merely supports the “lazy” and “workshy”. As a result, for many, there’s resentment in paying tax without the realisation that it benefits everyone.
The reality is that tax isn’t universally realised as a contribution to society. That’s resulted in an ignorant belief where some people feel they aren’t seeing much for their taxes, while others who don’t pay tax, do.
Public services aren’t just for the poor, they’re for the public. And that means everyone. Yet the provision of public services is often ignored by those who would argue they see no personal “return” on their taxes. In fact, many are quick to take for granted the universal access to state education, healthcare and other vital public services that at some point everyone has benefited from. Moreover, that stance is often heightened when considering local authorities and the services they provide.
Council tax represents only a fraction of the money local authorities have to spend, with the remainder coming from central government grants and councils’ revenue streams such as rent, fees and other charges. But despite their low profile in contrast to central government, local authorities have a huge remit in providing public services that affect people’s day-to-day lives.
Children’s services, education, environmental services, licensing and planning are just some of the services provided by local authorities that have a direct impact on everyone. Nonetheless, some people would inexplicably argue that they see little benefit from local authorities or from paying council tax.
Part of these attitudes stem from the government’s socially divisive approach in demonising the public sector and, on a second front, those that rely on the welfare system. On the latter especially, some people have sadly taken the bait and furthered the misconceptions around welfare, who receives it and the circumstances that led them to be in that position. Unsurprisingly, that’s just increased some people’s resentment in paying tax.
Contrary to popular belief, not everyone in receipt of benefits is a teenage single mother who repeatedly fails to practice birth control or any other Daily Mail-esque twisted and deeply offensive stereotype. Furthermore, welfare isn’t intended as a subsidy for the lazy, it’s for the vulnerable in maintaining a fairer society.
Aside from pensioners, many people receiving benefits are actually working but on low wages that don’t enable a basic standard of living. The disabled are also eligible for benefits to assist with extra costs caused by their disability. Broadly speaking, most benefit claimants are simply victims of wider social problems such as high unemployment and unaffordable housing. Do they not deserve the support of a system that is contributed to by the taxes of those that are more fortunate?
The welfare reform being introduced targets a section of society that has become the go-to scapegoat. At the same time, the 50p tax rate is also being abolished for high earners – no wonder there’s a growing sentiment of ‘them and us’.
Reform of some kind is necessary to ensure the vulnerable, not the minority who abuse the system, have access to benefits while reducing a rising and untenable welfare bill. I’m not exactly a benefit sympathiser as where the system has been abused or unnecessarily depended upon, I’ve seen the negative impact it can have on communities and local economies for generations. Yet this group actually counts for the minority and there’s a distinct lack of empathy for those that are genuine claimants and a disregard for the situation that led them to needing support.
The bedroom tax for example will see recipients of housing benefit who are deemed to have a spare room in social housing losing 14% of their housing benefit. If they’re deemed to have two or more spare rooms, they’ll lose 25% of their housing benefit. The government claims this will result in a more efficient use of social housing and help to reduce the housing benefit bill which I agree is very much needed. But many tenants will be penalised for additional rooms they need for medical reasons or other valid circumstances that have been overlooked by the government. The state of social housing isn’t their fault yet they’re being made to pay the price for it.
Another often ignored reason for the rising housing benefit bill is the number of largely middle class buy-to-let homeowners. Many will rent to low-income or unemployed tenants in receipt of housing benefit, knowing the rent will be met by the state. They’ll therefore charge high rents with no moral consideration. Seemingly, when it’s the middle classes who are the culprits of being a drain on welfare, the vitriol from the government and others isn’t quite the same.
Given the perception of welfare and public services, some view their taxes as almost being a penalty for hard work that merely gets diverted to the undeserving. The bigger picture of the social gains provided by taxes gets lost in the diatribe. Consequently, these attitudes gradually erode any sense of social cohesiveness.
Taxes aren’t an exclusive subsidy for the low paid or unemployed, nor do they fund public services that only benefit the “have-nots”. The ignorance and aloofness that leads to this misconception is hugely flawed and only serves to perpetuate a fallacy that is increasingly damaging to society.
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iamalaw