Article

Comment

Sport

20 August 2024

5 min read

What’s Simone Biles doing today?

How to live with winning and losing.

Julia Kendal

Juila is a writer and social justice advocate.

Simone's gold medal moment.

@simonebiles

I wonder about what Simone Biles is doing today. She is one of the many athletes whose Paris 2024 was about more than gold; it was about redemption. Now the Games are over, what happens to their restoration story?

The narrative about redemption seemed to dominate the headlines and linger in post-event interviews. Some Olympians came to the Games seeking it. Gymnast Rhys McClenaghan was tipped for gold in Tokyo 2020 but stumbled on the pommel horse, finishing in seventh place. In France, he climbed to the top of the podium.

Others completed a fall and rise within the two weeks themselves. Sprinter Jeremiah Azu had a faltering beginning to the Games, disqualified for a false start in the individual 100m heat. Just six days later he was clutching a bronze medal for the relay.

Then there are those like taekwondo athlete, Jade Jones, who also laboured for years and gave their all – but didn’t get the payoff that they sought. What does the story mean when it is unfulfilled? And when the Games are over, how do people live with winning and losing?

Into our messy, maybe frightening, sometimes ordinary, lives, we love a redemption story to brighten and neaten things up.

After years of professional procrastination, a few months ago I finally took the plunge and joined LinkedIn. An impressive feat, I know. It was driven by practicality; I was finishing a job as a climate policy advocate and making the leap into consultancy. But I’ve been fascinated to discover how people in my community, and millions of others, are sharing tender and vulnerable ideas and thoughts in this social workspace. They are coming with questions – what does success look like? How are you navigating your purpose in the day to day? What world do you want your children to inherit? – and gentle ideas about their answers.

People are asking about and reflecting on how to navigate winning, and losing, and living in the murky space in between.

This feels striking because one of the other prevalent stories many of us believe, maybe unconsciously, is that life will generally be good and any setbacks are the exception. Growing up in the Nineties the message seemed to be: the world is your oyster if you work for it. Put in the effort, and the losses will be few and the trajectory will be up.

But the last few years in particular – economic volatility, growing exposure of deep inequalities, the worsening climate crisis – hammer home that this is not reliably the case. No matter how much effort you put in, we rarely live through one type of season at a time. Joy and suffering co-exist. And amongst the highs and the lows, there is a whole lot of everyday living. Show up at the desk, the school gate, the supermarket.

Into our messy, maybe frightening, sometimes ordinary, lives, we love a redemption story to brighten and neaten things up.

The sting of winning or losing is softened when we stop ascribing all meaning to them, and instead cast them in the context of a wider story.

But part of the problem with many of the redemption tales we share is that they rely on the person themselves to deliver their own restoration. They’ve had (and are perhaps blamed for) a fall from grace, and now it’s up to them to find it within themselves – their physical, mental and emotional capacity – to achieve restoration. That’s a heavy weight to put on anyone’s shoulders (however broad they may be).

And any redemption gained is fleeting. Medal winners talk about ‘gold medal syndrome’: the post-competition feeling of depression, loneliness and emptiness. For those athletes who’ve now headed home after fulfilling a salvation arc, is the emotional dip going to be even steeper, harder?

Most of us won’t be Olympians, despite how expertly we discuss the diving scores every four years, but that sense of deflation after achieving a long-sought goal can be resonant. We’ve strived and risked ourselves for something, only to find the aftertaste is a bit flat. That new job is good but flawed. Winning that award doesn’t stop a rejection landing in the inbox the next day. The house renovations are already showing cracks. Winning and losing are both transient. A redemption made ourselves rarely satisfies or lasts.

The sting of winning or losing is softened when we stop ascribing all meaning to them, and instead cast them in the context of a wider story. One that goes further than a single person or moment – a birth, a podium, a bonus. Such a story can speak beyond our own lives to the core challenges we face in the world: fairness into a broken economic system; peace instead of violence in our communities; flourishing, not escalating environmental crises.

During my years of climate advocacy, I have sometimes envied colleagues working on more tightly defined topics with the possibility (only fulfilled through huge amounts of wisdom and graft, of course) of winning. Change a law, solve a problem. As the climate gets warmer and more unpredictable, it’s easy to have a sense that, at best, you are just making things a little less bad. The wins are in the context of a lot of disappointments, and a whole lot more grey space in between.

But by being able to root my day to day in a bigger story, I can move forward with hope. Understanding our lives as part of an even greater narrative – the story of this world that God loves and sustains and restores – saves us from the pressure and heartache of trying to redeem our own lives. Instead, we can live them – the wins, the losses, and all the mundane moments in between – in light of that bigger story.

Looking at the world through the lens of God’s redemption story helps us to stay clear-sighted: celebrating the successes and not make them our whole world; naming the problems and still acting with hope and grit.

A redemption arc is a beautiful one. I want to hold onto that longing, but find it in a story that’s deeper, longer and richer than I can see. A story that lasts.

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.