Everyone has an opinion on tax. Often it’s focused on complaints about paying too much, government waste or simply being seen as a necessary evil. However, tax can be a far more liberating tool for social change than we perhaps realise.
Ask yourself if you care about your pension, the NHS, roads, railways, social security and schools – taxes directly fund all these. Taxation is the foundation of Scotland’s economy and if we don’t collect taxes then public services simply don’t exist.
Tax is about building our collective wealth and prosperity, a critical investment in our lives, our children and local communities – what’s more important than that?
It’s essential that we now take part in a more expansive debate about the liberating potential of our tax system and what this means for Scotland.
The toxic tax narrative
The language used in this debate really matters.
To make progress we must challenge the toxic media and political narratives around tax, framed as the negative tax burden. Calls to tax the rich lead to claims that so-called ‘wealth creators’ would leave the country. This simply isn’t true.
It’s also time to reclaim the language of wealth creation to refer to the wealth we all create. We must position this all as tax justice.
Tax the rich
Across the world there’s already a changed public mood, with increasing anger about massive tax dodging by wealthy billionaires and big corporations.
We need strong, reliable research and statistics to back up ambitious policy action here.
For example, the brilliant Corporate Tax Haven Index shows how the UK is behind a massive one third of all global tax dodging, with places such as the Cayman Islands and Jersey.
The existence of this complex Spider’s Web, facilitated by successive UK Governments, is profoundly offensive when we’re then told “there’s no money left” for our public services.
Escape the tax matrix
There are big challenges facing Scotland’s public finances and economy. However, we can solve some of this through tax – we’re being limited only by our imaginations.
Innovation and fresh thinking about tax is essential. This means that the Scottish Government, think tanks and others must be more open-minded.
Tax must be seen for what it really is – a powerful tool for transforming our economy.
What can Scotland do right now?
Even with limited devolution tax powers we can do so much more. We must ensure that much more tax is raised locally to drive economic regeneration and boost local democracy – plus replace the hated council tax.
The billions in public sector pension funds should be invested directly into communities wherever possible too. We should also consider new land value taxes.
A Selective Employment Tax could be introduced. This is where profitable, polluting industries are taxed more and the revenues are then invested in the social economy.
By tackling tax avoidance, evasion and fraud at all levels and using technology to streamline the system, many solutions exist.
Make your voice heard
The narrative around tax can be changed from a negative burden to a liberating tool for social change. Start conversations with family and friends and in workplaces, and urge your employer to sign up to essential tools like the Fair Tax Mark.
There are campaign groups that seek to drive forward tax justice, from Tax Justice Scotland to global networks. I’d urge everyone to support these campaigns and share their posts on social media.
It’s essential to show this support to MSPs and local councillors too, in-person and through petitions. By doing this we can change the debate about tax and get practical action to build a better Scotland for all of us.
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