More tax is the way to a happier, healthier society

✒ EVERYBODY’S talking about how we are paying too much tax, with politicians trying to appeal to the general public by promising to reduce taxation: but if our government wants to make people happier it should increase taxes, not reduce them – at least, that’s what international happiness studies seem to suggest.

Despite what many people seem to think, we are a lowtax country.

Total tax revenue as a percentage of GDP is well below average in the UK compared to other major economies, according to an Institute of Fiscal Studies (IFS) report in which we ranked 23rd out of 38 countries.

Of the 10 happiest countries ranked by the 2022 World Happiness Report, eight ranked higher than the UK in the IFS tax/GDP report, with Scandinavian countries such as Denmark, Sweden, Finland and Norway ranking very highly in each.

Andrew Oswald, Professor of Economics and Behavioural Science at the University of Warwick, attributes this apparent connection to the provision of things that are exceptionally important to human beings, such as an effective health service, social safety nets, environmental and financial regulation and defence against aggressors.

Unfortunately, ever since the Thatcher era of the 1980s we have been so brainwashed by the Conservative mantra that “Taxation is confiscation of your wealth” that it would be very difficult for any aspiring new government to declare an intention to raise taxes, as the Labour Party is now finding – and, of course, recent increases in the cost of living haven’t helped – but when the NHS, social care and mental health services are all on their knees; when the police can’t afford to investigate burglaries any more; when all our roads are full of potholes; when our schools are falling apart, and teachers are tearing their hair out because they can no longer employ classroom assistants; when, in short, we are rapidly turning into what used to be called a Third World country, how are we ever going to drag ourselves out of the slough of despond without quite dramatically increasing government revenues?

Francis Kirkham via email

❝❝ Total tax revenue as a percentage of GDP is well below average in the UK compared to other major economies