Welby’s tax grab fills me with fear
ARCHBISHOP of Canterbury Justin Welby used to be an oil company executive before taking holy orders. So he knows as much about business as he does about the teachings of Jesus Christ.
And the central insight of the Archbishop’s powerful report on the British economy marks an astonishing break from the teaching of the Church.
The Archbishop – in defiance of Christian teaching – considers that God and Mammon can indeed live together.
But he argues that hard-nosed economic dynamism is not nearly enough. A modern economy will only work properly if is also fair and just.
As he rightly points out, life has become much too tough for millions of decent, hard-working people who have seen their incomes fall sharply over the past decade.
And as their incomes fall, their livelihoods have become more insecure.
Meanwhile, the rich – many of whom hide their assets overseas – have grown ever richer.
The Archbishop does not simply consider this a moral abomination. He also thinks it is an economic mistake.
That is why Welby argues for a transformation of British society as profound as the one masterminded by Labour leader Clem Attlee after the Second World War, or Margaret Thatcher’s freemarket reforms of the Eighties.
I wholeheartedly agree with him about the need for such reforms. But I am afraid that massive question marks surround his solutions.
Welby, in defiance of almost all theory and practice, believes he can solve Britain’s economic problems by putting up more taxes. To repeat – more taxes! The fact is that Mrs Thatcher brought about her economic miracle by reducing and not increasing taxation.
Whatever else one thinks of President Trump, you have to admit that his tax cuts last year have brought US employment and prosperity to record levels.
I also feel intense qualms about Welby’s support for a state investment bank.
History teaches us that such institutions throw good money after bad. Much better leave money in the hands of taxpayers than allow politicians to pick and choose industrial winners. Let us not forget that archbishops of Canterbury do not always get it right when they meddle in the economy.
Robert Runcie made a fool of himself when he took a stand against Maggie Thatcher with his Faith in the City report.
However, I believe that the Welby proposals – which were prepared with the high-powered centre- Left think- tank the Institute for Public Policy Research – contain a number of truly worthwhile proposals that deserve serious consideration.
First and foremost is the Archbishop’s determination to confront out- of- control 21st- century racketeers such as retailer Amazon and internet giants Google and Facebook.
Until now, British politicians such as David Cameron and Tony Blair have cravenly given in to these unscrupulous companies, which are changing the face of our country. The fact is that they pay far too little tax in Britain. They use this unfair advantage to drive honest firms that do pay honest tax out of business.
Welby is surely right to call an end to this rank economic and moral injustice. All decent people will support his demand that these unscrupulous titans be made subject to much tougher regulation. TO be fair to the Archbishop, his tax proposals are in effect a return to the radical policies of the Thatcher/ Lawson period, when taxation was levelled equally on investment and earnings alike.
Recent adjustments by cleverdick chancellors such as George Osborne and Gordon Brown reversed that.
Rich investors who gain windfall profits from stocks and shares or property pay far less taxation than ordinary folk who work hard for their earnings.
The Archbishop wants to force the rich to make a bigger contribution to society so that the rest of us – especially young people – have a better chance in life. What’s wrong with that? There are many flaws in this report, but it is still a huge contribution to the debate. It is exceptionally well written and far higher in quality than many party manifestos.
In many ways it comes as a reminder of the policies aimed at hard-working, hard-up people advocated by Theresa May when she became Prime Minister two years ago.
As a vicar’s daughter, she is in the perfect position to learn from the Archbishop’s report. And so she should. For all its faults, it contains many worthwhile ideas.