| ion has been around for nearly as long as there have | | | | pay 2p directly to the government on each pound. If |
| been societies. An organised culture has usually had a | | | | you earned £100 per year, you would pay 2p |
| ruler at the top, and long before these rulers needed | | | | on every pound over £60 – so you |
| money for social provision, they needed it for war, | | | | would pay 80p – or six shillings and eight |
| building palaces, or simply claimed it as their right. | | | | pence. If you earned £200 a year or more, |
| Some of the earliest known taxes were levied in | | | | the rate increased to 24p in the pound – 10%. |
| Ancient Egypt between 3000 and 2800BC. The | | | | This type of tax is known as a progressive tax: the |
| pharaoh would undertake a tour of his kingdom and | | | | more you earn, the more you pay. It is designed to |
| collect taxes, which were payable on almost any kind | | | | affect the most well off more. Other types of tax, |
| of economic activity, including on grain and cattle. | | | | such as purchase taxes, where a percentage of the |
| Some taxes were due in the form of labour. The | | | | price of goods is paid in tax, are known as regressive |
| pharaoh sometimes needed money for wars and | | | | taxes – everyone pays the same percentage, |
| would collect this tax whenever necessary. Crucially, | | | | so the least well off are worst hit. |
| the money was not simply for war: it was also | | | | Today, most industrialised countries have a variety of |
| because the pharaoh was due it as the incarnation of | | | | taxes paid by their citizens, with income tax usually |
| Horus – namely, it was his right to take | | | | the most significant. Throughout history, the services |
| money from his subjects. | | | | provided by rulers were limited to defence. It was |
| Rome also made good use of the idea of taxation. | | | | not until the nineteenth century that modern social |
| Its conquered territories were subject to especially | | | | provision: pensions, education, healthcare or welfare |
| heavy taxes (something imperial powers have done | | | | payments began to be discussed seriously and in |
| many times since) and the tax-collectors, often | | | | some places implemented. These provisions cost |
| bemoaned in the New Testament, were greatly | | | | vastly more than can be raised by one-off taxes, or |
| resented: not just for taking monies due to Rome, | | | | than can be afforded by the private sector alone. |
| but for enriching themselves in the process. Rome | | | | The only way that a government can afford these |
| was a sophisticated empire, and although much of its | | | | services is to levy a variety of taxes. |
| tax revenue was used to pay for war and the | | | | Of course, there are differences from country to |
| maintenance of its army, some would have been | | | | country and even within countries – such as |
| spent on viaducts, roads and other civic buildings. | | | | the existence of private education – but look |
| Rome also had something of a fiscal crisis under | | | | at some figures. The UK government spent around |
| Diocletian (284-305 AD), who levied a land tax on | | | | £620 billion in 2008-2009; the US government |
| Italians (which had not been done for hundreds of | | | | spent $5000 billion in 2007-2008. |
| years) to try and raise more money. | | | | Of the British government figure of £620 |
| In the Middle Ages, European peasants suffered | | | | billion, a great proportion of that was spent on social |
| greatly from their lords and masters demanding | | | | provision: health (£109 bn), education |
| money. The people of England had to pay a tax | | | | (£63 bn), welfare (£135 bn) and |
| (Danegeld) to the Vikings for the privilege of having | | | | defence (£44 bn). Remember this is the |
| been invaded. People had to pay 10% of their | | | | spending of a nation of 60 million people, hardly the |
| earnings to the Church, called a tithe. Knights, higher | | | | largest country on Earth. |
| up than peasants in the feudal system of the time, | | | | These figures are gigantic. The five richest people on |
| but below barons, could pay taxes in order to avoid | | | | the planet have a total wealth of around $180 billion. |
| military service. | | | | Even a small country like Britain could, therefore, not |
| However, the tax most people are familiar with, | | | | be financed privately. For the social provision needed |
| income tax, was a later invention. It had been used | | | | to prevent poverty, cure diseases or spread learning, |
| briefly in China by the emperor Wang Mang, but first | | | | only general taxation can possibly raise the sums |
| became a regular tax in Britain in 1798. At the time, | | | | needed. |
| Britain was trying to defeat Napoleon and guarantee | | | | Tax, therefore, is not going away anytime soon. |
| its status as the most powerful of European nations. | | | | Seeing the tax going out of your paypacket does |
| But there was not enough money to pay for the | | | | not always make pleasant reading, but it really is the |
| military forces involved. So the prime minister, William | | | | only way to pay for the things you and your children |
| Pitt the Younger, created a law which said that if you | | | | need. |
| earned more than £60 per year, you had to | | | | |