What does Labour offer on tax now? Photo: Getty Images
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Don't be fooled. The country needs and wants a honest debate about tax

Labour's chastening defeat has led some to claim the party is abandoning its commitments on tax. But that's a myth.

Has Labour, as Janan Ganesh claimed recently, ‘quietly given up on that which used to define it’? The article – and the wider argument – was based on wrongheaded assumptions about Labour – and taxation more generally.

By arguing that Labour’s focus on taxing ‘The Rich’ was insufficient in either generating enough revenue or honouring the principle of solidarity’, he suggests that Labour has turned away from its – apparently - high tax roots. According to Ganesh, ‘voters do not wish to pay more tax and do not assume that the tax they already pay is a proxy measure of their goodness as people’.

But Ganesh is wrong: the dividing lines on tax and redistribution between the parties remain clear, and it is the Labour party that has stayed on the right side of the debate.

Firstly, the pervasive narrative of Labour as the party of high taxes must be better understood for what it is: mythology. The article refers to Labour’s offer in 1992 as a classic example of self-righteousness over higher taxes, a pervasive political myth on the right. Yet, its manifesto was full of sound and perceptive tax proposals: who knew that the Conservatives’ celebrated personal allowance extensions had their roots in Labour’s 1992 manifesto which pledged to ‘take 740,000 taxpayers out of taxation altogether’? Furthermore, it promised to leave the basic and higher rates of income tax unchanged, and to abolish the iniquitous ceiling on National Insurance, which continues to this day (where earnings under £815 a week pay 12% in NICs while earnings over £815 pay only 2% in NICs). Mythology is of course persuasive and important: but these tax policies expose the hollow scaremongering that inaccurately overshadows Labour’s economic credibility.

Secondly, Ganesh interprets the taxing of bank bonuses, increasing the top rate of income tax, and the introduction of a ‘mansion’ tax as ‘petty politics’, echoing accusations from the Telegraph of Labour’s politics of ‘pure class envy’: yet, this analysis demonstrates how far the political right underestimates the significance (and popularity) of taxing wealth.

Labour’s election tax proposals were designed to promote exactly the ‘universalism and solidarity’ that Ganesh suggests it has abandoned. Taxing wealth properly addresses the UK’s chronic inequality, and Labour’s proposals attempted to grapple with the question of fairness in the system (the moral question of how we tax) alongside the dominant concern of revenue raising (the economic question of how much we tax). While Conservatives might dream of becoming the ‘workers’ party’ in ‘taking people out of tax’ through personal allowance extensions, the policy has further entrenched inequality in the system, with the reform disproportionately benefitting the wealthiest. Meanwhile, the Equality Trust has shown that while the wealthiest 10% of taxpayers pay 35p in every pound of their income in all forms of tax, for the poorest 10%, this figure is 43p. As such, the inherent, institutionalised injustices of the tax system require a radical overhaul with a focus on entrenched wealth: this, via examples such as a tax on property wealth, was exactly Labour’s offer last month.

Ganesh is partly right when he says that ‘by international standards, Britain is not overtaxed’, as, unlike low and middle wages, entrenched and unearned wealth remains chronically under-taxed. And this is important not just for the warped caricature of a party that taxes for tax’s sake: it has huge economic consequences too. Indeed, the OECD has demonstrated that societal inequality erodes economic productivity, knocking an estimated 9% off cumulative growth in the UK between 1990 and 2010. Reforming the tax system in favour of fairness and distribution is in the interests of all those professing commitment to a strong economy. Indeed, Labour’s ‘mansion tax’ seems less far-fetched when compared to the International Monetary Fund’s promotion of a one-off wealth tax of 10% in developed countries to wipe out public debt. And while the politics of revenue raising matters here (with Labour’s mansion tax plans estimated to raise £1.2bn), the politics of fairness and distribution are morally crucial too.

Finally, Ganesh’s implicit assumption of the public’s disengagement with taxation is unfounded. Blindly presenting all tax as intrinsically ‘bad’ is to misunderstand people’s continued connection to it. Most people are not inherently against taxes if they are collected fairly, used transparently, and if all contribute a fair share - hence the public’s outrage at tax avoidance. And while the tax burdens on low to middle income earners clearly need to be lessened, parties of all stripes must rid themselves of the idea that talking tax is toxic.

Public attitudes research shows distinct support for taxes when linked to high quality public service, with significant support for the introduction of a high value property tax and even increases in personal taxation to fund the NHS. Furthermore, forthcoming Fabian Society research on public attitudes to taxation indicates the desire for a more transparent tax system, with greater information and honest debate about the tax people pay. Indeed, it was precisely this attitude that secured public confidence when Gordon Brown introduced the ‘penny increase’ in National Insurance Contributions to provide funding for the NHS (following discussion in the Fabian Society’s Commission on Taxation and Citizenship in 2000). All parties must do more to engage with this sort of open discussion on tax.

Mythologies surrounding Labour’s history and public attitudes continue to distance the party (and indeed all parties) from the brighter reality on tax, that the public can handle (and indeed desperately want) honest, open discussion on the subject. As the Institute for Fiscal Studies identified during the election, this sort of debate is chronically missing, whether it’s about how we tax, or how much we tax. And it would be wrong to let such scaremongering frighten progressive politicians from engaging with these debates over the next five years, debates which we all deserve to be part of.

Daisy Srblin is a Research Fellow at the Fabian Society and is working on a forthcoming publication on public attitudes to taxation, for publication in Summer 2015 as part of the Future of Tax project.

 

 

 

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Misogynoir: How social media abuse exposes longstanding prejudices against black women

After decades as an MP, Diane Abbott finally spoke out about the racist and sexist abuse she faces. But she's not alone. 

“Which STD will end your miserable life?” “This is why monkeys don’t belong here.” “I hope you get lynched”. These are just some of the many messages Seyi Akiwowo, a Labour councillor in Newham, told me she has been sent over the past three weeks. Akiwowo has received reams of violent and racist abuse after a video of her suggesting former empires pay reparations to countries they once colonised (and whose resources they still continue to plunder) went viral. She doesn’t expect everyone to agree with her, she said, but people seem to think they’re entitled to hurl abuse at her because she’s a black woman.

The particular intensity of misogyny directed at black women is so commonplace that it was given a name by academic Moya Bailey: misogynoir. This was highlighted recently when Diane Abbott, the country’s first and most-well known black woman MP and current shadow Home secretary, spoke out about the violent messages she’s received and continues to receive. The messages are so serious that Abbott’s staff often fear for her safety. There is an implicit point in abuse like this: women of colour, in particular black women, should know their place. If they dare to share their opinions, they’ll be attacked for it.

There is no shortage of evidence to show women of colour are sent racist and sexist messages for simply having an opinion or being in the public eye, but there is a dearth of meaningful responses. “I don’t see social media companies or government leaders doing enough to rectify the issue,” said Akiwowo, who has reported some of the abuse she’s received. Chi Onwurah, shadow minister for Business, Innovation and Skills, agreed. “The advice from social media experts is not to feed the trolls, but that vacates the public space for them," she said. But ignoring abuse is a non-solution. Although Onwurah notes the police and media giants are beginning to take this abuse seriously, not enough is being done.

Akiwowo has conversations with young women of colour who become less sure they want to go into politics after seeing the way people like Abbott have been treated. It’s an unsurprising reaction. Kate Osamor, shadow secretary of state for International Development, argued no one should have to deal with the kind of vitriol Abbott does. It’s well documented that the ease and anonymity of social media platforms like Twitter and Facebook have changed the nature of communication – and for politicians, this means more abuse, at a faster pace and at all hours of the day. Social media, Onwurah said, has given abuse a “new lease of life”. There needs to be a concerted effort to stop people from using these platforms to spout their odious views.

But there is another layer to understanding misogyny and racism in public life. The rapid and anonymous, yet public, nature of social media has shone a light on what women of colour already know to be a reality. Dawn Butler MP, who has previously described racism as the House of Commons’ “dirty little secret”, told me “of course” she has experienced racism and sexism in Parliament: “What surprises me is when other people are surprised”. Perhaps that’s because there’s an unwillingness to realise or really grapple the pervasiveness of misogynoir.

“Sometimes it takes a lot of effort to get someone to understand the discriminatory nature of peoples’ actions,” Butler explained. “That itself is demoralising and exhausting.” After 30 years of racist and sexist treatment, it was only when Abbott highlighted the visceral abuse she experiences that politicians and commentators were willing to speak out in her support. Even then, there seemed to be little recognition of how deep this ran. In recent years, the Labour leader Jeremy Corbyn has been ridiculed for having a relationship with her in the 70s, as if a black woman’s sexuality is both intriguing and laughable; people regularly imply she’s incompetent, despite having been in Parliament for three decades and at the last general election increasing her majority by a staggering amount; she has even been derided by her own colleagues. Those Labour MPs who began the hashtag #PrayforDiane when she was off work because of illness spoke to a form of bullying that wouldn’t be acceptable in most workplaces.

These supposedly less obvious forms of racism and sexism are largely downplayed or seen as unrelated to discrimination. They might be understood through what influential scholar Stuart Hall called the “grammar of race”. Different from overtly racist comments, Hall says there’s a form of racism that’s “inferential”; naturalised representations of people - whether factual or fictional - have “racist premises and propositions inscribed in them as a set of unquestioned assumptions”. Alongside the racist insults hurled at black women politicians like Abbott, there’s a set of racialised tropes that rely on sexualisation or derision to undermine these women.

The streams of abuse on social media aren’t the only barrier people of colour – and women in particular – face when they think about getting into politics. “I don’t think there’s a shortage of people in the black community who put themselves forward to stand for office, you only have to look at when positions come up the list of people that go for the position,” Claudia Webbe, a councillor and member of Labour's ruling body the National Executive Committee told me. As one of the few black women to hold such a position in the history of the Labour party, she knows from her extensive career how the system works. “I think there is both a problem of unfair selection and a problem of BME [black and minority ethnic] people sustaining the course." Conscious and unconscious racial and gender bias means politics are, like other areas of work in the UK, more difficult to get into if you’re a woman of colour.

“The way white women respond to the way black women are treated is integral,” Osamor says, “They are part of the solution”. White women also face venomous and low-lying forms of sexism that are often overlooked, but at times the solidarity given to them is conditional for women of colour. In a leaked letter to The Guardian, Abbott’s staff criticised the police for not acting on death threats, while similar messages sent to Anna Soubry MP resulted in arrest. When the mainstream left talks about women, it usually means white women. This implicitly turns the experiences of women of colour into an afterthought.

The systematic discrimination against women of colour, and its erasure or addendum-like quality, stems from the colonial racial order. In the days of the British empire, white women were ranked as superior to colonised Asian and African women who were at different times seen as overly sexualised or unfeminine. Black women were at the bottom of this hierarchy. Women of colour were essentially discounted as real women. Recognising this does not equate to pitting white women and women of colour against each other. It is simply a case of recognising the fact that there is a distinct issue of racial abuse.

The online abuse women of colour, and black women specifically, is an issue that needs to be highlighted and dealt with. But there are other more insidious ways that racism and sexism manifest themselves in everyday political life, which should not be overlooked. “Thirty years ago I entered parliament to try and be the change I wanted to see,” Abbott wrote. “Despite the personal attacks and the online abuse, that struggle continues.” That struggle must be a collective one.

Maya Goodfellow researches race and racism in Britain. She is a staff writer at LabourList.