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Middle East

War & peace

2 October 2024

4 min read

‘The silent stars go by’, mocking the Middle East peace process

Where are today’s witnesses to peace in the Holy Lands?

George Pitcher

George is a visiting fellow at the London School of Economics and an Anglican priest.

Dots of light, caused by missles, fall across a night sky above the city

Iranian missiles above Jerusalem.

BBC News.

The evil shooting stars of ballistic weaponry over Jerusalem would have been clearly visible from Bethlehem, just to the south of the capital in the occupied West Bank, last Monday evening.

“Above thy deep and dreamless sleep/ the silent stars go by” goes the children’s Christmas carol. Nothing deep and dreamless about sleep in the little town of Bethlehem just now. Those deadly Iranian-dispatched stars were silent enough, until their alignment with Israeli ones in the Iron Dome. Then “Whump!” as each star collapsed, leaving a black hole in the night sky.

How depressing that these shining stars of violence and hatred should hang in the same sky that, it is said, hosted the star to mark the birthplace of the Prince of Peace. Depressing but not surprising. The Christ child grew up to foretell to Jerusalem that “the days will come upon you, when your enemies will set up a barricade around you and surround you and hem you in on every side and tear you down to the ground, you and your children within you.”

He predicted his own death in Jerusalem. And, for sure, the Christ is still being crucified there, every time a man, woman or child loses their life to that violence and hatred, there or in the surrounding region.

Where are wiser counsels this week, witnesses to peace in the Holy Lands? The legend has it that magi followed the messianic star to the stable. Who looks to these different stars in the night sky this week and asks what they mean?

Iran’s hardliners, under Ayatollah Ali Khamenei, can’t countenance a dove with an olive twig.

It’s a bit of a stretch to apply the status of magus to Masoud Pezeshkian, Iran’s new reformist president who had just been sworn in when he watched the rockets launched. His only similarity with the magi may be that he watched those travelling stars in the sky from an eastern perspective.

But Pezeshkian has, at least, tried to talk of the possibility of peace, among a Middle-Eastern cast who can only speak of war. He arrived back in Iran from the UN general assembly, where he had declared that Iran is “ready to lay down its arms if Israel lays down its arms.” He added: “We want to live in peace.”

Even if it’s not the wolf living with the lamb, or the leopard lying down with the kid, it does at least envisage a time when an Israeli wolf may lie down with the Iranian leopard. But Iran’s hardliners, under Ayatollah Ali Khamenei, can’t countenance a dove with an olive twig. They’re consumed with vengeance for Israel’s killing of their putative military leader, Hezbollah’s Hassan Nasrallah, in Lebanon. And death must always be followed by more death in this scenario.

Followers of the Nazarene into Jerusalem committed to something very different, a defeat of death as a weapon of despair. Two millennia later, we might expect leaders of a western world founded on the principles of those first followers to speak to peace as the overriding priority for the lands from which their religion derives.

To draw the West into a war with Iran in defence of Israel. A re-elected president Donald Trump would be a useful dupe for this ploy...

Not a bit of it. Peace in the Holy Lands doesn’t even sound like a strategic aim for the West anymore. On the invasion of Iraq in 2003, the US Army general David Petraeus asked: “Tell me how this ends?” No such foresight today. The all-consuming desire seems solely to show that we’re on Israel’s side, come what may.

President Joe Biden responded to Iran’s aerial attack by saying that the US is “fully, fully, fully supportive of Israel”. For his part, prime minister Keir Starmer declared that “Britain stands full square” with Israel and supports its “reasonable demand for the security of its people.” Admirable sentiments, but they don’t point to peace any time soon, so long as they encourage Israel (or anyone else) to escalate conflict.

In some quarters, this is held to be deliberate Israeli policy: To draw the West into a war with Iran in defence of Israel. A re-elected president Donald Trump would be a useful dupe for this ploy, abetted in part by the more extreme ends of the US Christian Right, for whom Israel must be protected at all costs as the locus for the second coming of the Christ. So, war with Iran is Armageddon, the great conflict of the End Times.

These are truly terrifying prospects. For the time being, it’s possibly enough to note that the president of Iran speaks more about peace than the West currently does. Given that the West is supposed to represent the legacy virtues of Christendom, that is in turn alarming.

That Bethlehem carol goes on to note “How silently, how silently, the wondrous gift is given.” As we raise our eyes to the fearsome lights in the night sky over Israel, we might wonder whether, when it comes to peace, silence from Christian nations is really enough.

Explainer

Comment

Economics

29 October 2024

6 min read

How to tax ethically to avoid a two-tier society

From income tax to property and inheritance taxes, which is fairer?

Laurence Fletcher

Laurence Fletcher is a journalist at the Financial Times.

Sarah Agnew on Unsplash.

Few doubt that Chancellor Rachel Reeves will be putting up taxes when she presents her first Budget on October 30th.

The political narrative of recent months has very much been of an alleged fiscal “black hole” of £22bn - or is it £40bn? - that somehow needs to be filled.

While the size of the shortfall and the identity of those responsible are both hotly disputed, and despite a lack of detail from the Treasury about what it actually consists of, the questions now being asked are not whether taxes will rise but which ones and by how much.

Months of speculation have focused on employer National Insurance, capital gains tax and freezing income tax thresholds as areas that Reeves could look to for the additional revenue.

But beyond the immediate issue of raising enough revenue to make good any shortfall, lies a deeper, trickier question about the way in which taxes should be levied for the good of society. If a government is to force people and companies to hand over their money, then what is the most ethical way to do this? Who should pay and who shouldn’t? How can tax be used to reduce inequality and build a better society?

Answering such questions is, of course, far from straightforward, because there are plenty of other factors in play.

For instance, some taxes are surely levied because they are simpler to collect. Take income tax - an unpopular measure introduced in 1799, then abolished before being reintroduced as a supposed temporary measure. It could certainly be argued that taxing people’s income - their attempt to get on in life and improve their lot in life - is less “fair” than taxing wealth that has been accumulated by someone’s ancestors years ago. Working hard and earning income is often surely a way of breaking down class divisions. But income tax - contributing 28 per cent of UK government tax take in 2023-24, according to The Institute for Fiscal Studies - has the advantage that it is relatively difficult for the average worker at a UK company to avoid it. Ease of levying it is surely a driver.

Equally, some taxes that might seem “fairer” have deliberately not been levied because of the difficulty in collecting them, and/or because to try to do so could be counterproductive.

A wealth tax, for instance, would be “economically damaging”, according to one of the UK’s highest profile tax experts Dan Neidle.

Or take the politically contentious issue of non-doms, a colonial era tax break allowing rich foreigners to avoid UK tax on overseas income. It would be fairer, the argument goes, to tax them on the whole of their income. If they are going to be resident in the UK, then surely they should be taxed like a UK resident whose home is here?

Former Chancellor Jeremy Hunt abolished this regime earlier this year but left a number of concessions that the incoming Labour government pledged to abolish. But non-doms are tax-sensitive and highly mobile, and a number of jurisdictions compete to attract them. Many are entrepreneurs and wealth creators that many countries need. Reports have suggested a clampdown could raise no money or even cost money and could drive people away.

“Housing is being treated as a commodity. The problem is, it’s not; it’s not just an asset. It has utility value and a communal and quasi-spiritual value, enabling people to feel rooted.”

Paul Williams

So, what can be done to use tax in an ethical way? Paul Williams, research professor of marketplace theology and leadership at Regent College, Vancouver and chief executive of the Bible Society, takes a Biblical perspective that he believes offers some solutions.

He takes as his starting point a story from the gospel of Matthew, where Jesus is asked whether people should pay taxes to Caesar. The question is a trap - either Jesus gives his backing to taxation that is highly unpopular with the Jewish people, or he rejects the tax in an act of rebellion against the Romans.

Jesus replies that they should “pay to the Emperor what belongs to the Emperor, and pay to God what belongs to God.” We are to pay our taxes to those in authority, but we are also to honour God.

While Williams believes that too much emphasis is placed on the Budget and political parties’ promises to be able to fix everything, and that a more radical rethink of our economy is required, he also sees room for positive tweaks to the current system.

One key area is the property market, the manifestation of so much inequality in society, with some people owning multiple houses while others cannot afford to buy one.

Williams argues that the ready availability of debt finance has allowed those who already hold assets to easily acquire properties, turning real estate into an investable asset class to the detriment of many of the poorer in society.

“The reason there’s so many homeless people and empty houses is due to debt finance. It makes it easy for a relatively small proportion of the population to acquire a large percentage of the assets.

“The system has allowed a structure in which a small advantage in the beginning can lead to big, big differences over time.”

Williams highlights parts of Devon and Cornwall that have been, he says, “completely ruined” by wealthy people from elsewhere buying second homes, leaving property “out of reach of anyone who lives and works there”.

Nevertheless, he believes taxation can be used in this area to help level the playing field.

He proposes a “pretty punitive” marginal rate of tax on ownership of more than one home. (Stamp duty only partly does the job and is a blunt instrument also affecting people moving homes, thereby makes mobility expensive).

“You want to disincentivise the way the housing market is used for speculation,” he said.

“Housing is being treated as a commodity. The problem is, it’s not; it’s not just an asset. It has utility value and a communal and quasi-spiritual value, enabling people to feel rooted.”

Buy-to-lets, meanwhile, are better than having empty second or third homes, but “wouldn’t it be better if occupiers could buy that house?” he adds.

Meanwhile, research by the Financial Times recently found a huge wealth gap between the average millennial and the top 10 per cent of millennials, who are benefiting from family wealth to accumulate substantial housing assets.

So, would increasing the rate of inheritance tax - one of the most hated of taxes - and/or lowering the threshold also help reduce some of this inequality? After all, how is it fair that one child in the UK is born to inherit large property wealth while another is born to inherit little or nothing? Or, even worse, that second child will only ever be able to afford to be the tenant of the first, paying them rent for the rest of their lives?

Williams is not a fan of inheritance tax per se, arguing that it is “not part of the package” in a Biblical image of a flourishing economy.

But he adds an important caveat: “the playing field is not level.

“There might be circumstances to impose a one-off tax on the very wealthy… if you want a transition to a more equitable society.”

Such steps are not easy to take. It is, he admits, probably “career suicide” for a politician to adopt such views. But if we are to take steps towards a fairer way of life, and avoid a two-tier society in decades to come, then maybe the conversation needs to shift this way. Perhaps the Budget could be the time to start.