“Let me tell you how it will be
There's one for you, nineteen for me
'Cause I'm the taxman, yeah, I'm the taxman
Should five per cent appear too small
Be thankful I don't take it all
'Cause I'm the taxman, yeah I'm the taxman…”
These are lyrics from the Beatles’ 1966 hit song ‘Taxman’ in the album ‘Revolver’. Urban legend has it that George Harrison was so miffed with the high rate of progressive taxes levied by the British Labour government that he penned this song. Within just two years of forming their band, their earnings placed them in the top tax bracket in the U.K. and made them liable to pay a 95% supertax introduced by the government. This was later abolished in 1973.
Let me confess that while I love their songs, the Beatles are not particularly topping the charts when it comes to promoting tax justice.
Why so? Progressive taxation is a means to promote tax justice. It implies a system where tax rates increase as taxable amount increases. While these mostly apply to personal incomes, it can also apply to other kinds of tax adjustments by using tax exemptions, tax credits, or selective taxation.
For instance, levying a wealth or property tax, sales tax on luxury goods, or exemption of sales taxes on basic necessities, also create progressive effects by increasing the tax burden of higher income families and reducing it on lower income families. The much-feted French economist Thomas Piketty has also written how decreased progressivity in taxes increased income inequality in countries like the U.S.A.
A simple measure of progressivity in taxation is the proportion of tax revenue to a country’s GDP (also known as tax-GDP ratio). Let’s look at how some of the emerging economies fare: over a ten-year period (2002 to 2012), Brazil registers an increase in its tax-GDP ratio from 30.1 to 33.7. South Africa (from 27.4 to 28.2) and China (from 16.8 to 24.4) also record increases for the same period.
While India also shows an increase from 13.4 to 17.9, this is much lower than the others. It is worth noting that, as per the latest Union Budget 2015-16, tax revenue foregone on account of tax exemptions in India was to the tune of 5% of GDP.
The all-time hit song is also striking as it reveals how, in less than 50 years, the role of the government world over has changed dramatically. From governments that took the onus to provide for quality, basic essential services to all (that included quality healthcare and education, and in some cases, social security), we now see a shift wherein governments act more as a ‘facilitator’.
Financing for developmental priorities is no longer only for the government to care for; there are newer actors who now determine how much is to be spent and what are the priorities.
This began eighteen years ago (in 1997), when the UN General Assembly adopted the Agenda for Development and considered holding an international conference on financing for development (henceforth FFD). Two international conferences (Monterrey, Mexico in 2002 and Doha, Qatar in 2008) and several parallel sessions later, we are edging closer to the third international conference on FFD to be held in Addis Ababa, Ethiopia this July (13-16). This conference is also important as it would determine the contours of financing the new set of global goals, also known as the Sustainable Development Goals (SDGs).
The second FFD draft Outcome Document of the Addis conference (also known as Addis Accord) has been read and re-read by countries at the third drafting session at the UN that concluded on June 25, 2015. Beginning with the Monterrey Consensus of 2002 and reaffirmed in the Doha Declaration in 2008 held in the midst of the global economic crisis, there has been a continued push to promote private sector and other private flows.
The text of the draft FFD Outcome Document (the 3rd conference) brings this ‘push to shove’, as it clearly roots for private finance and, to quote the Robin Hood Tax Campaign, “strips out all reference to specific innovative taxes such as aviation, maritime and finance. If that were not bad enough, proposals to explore innovative mechanisms based on PPP models through market mechanisms and trading systems are encouraged. If ever an example of corporatization of the development agenda were needed, it is here as we see public financing having been completely replaced.” The final draft of the FFD Document freshly-released on June 26, 2015 retains all these proposals.
Social Watch also notes a move towards endorsing the UN Intergovernmental Committee on Sustainable Development Financing (ICESDF) report, which is viewed by several countries as leaning too heavily on private sector financing, blended finance and partnerships without adequate accountability mechanisms and governance measures.
A concern shared by many developing countries is that the aid commitments made by the developed North have not been realized. Instead of pushing developed countries to commit 0.7% of official development assistance (ODA) as a proportion of their Gross National Product (GNP), the shift is to bring in newer players with bigger purses who also want a say in determining policy priority.
The 0.75% target that was first proposed by the Nobel-winning Dutch economist Jan Tinbergen in 1972 and later endorsed by the 2005 G8 Gleneagles Summit now finds mention in just one para (para 51) of the 135 paras of the final draft of the Addis Accord.
If governments globally begin ‘facilitating’ private money lenders, who will regulate these lenders and safeguard the interests of citizens, the majority of who survive on less than a dollar a day? Over 100 networks and civil society organisations (CSOs) have endorsed the Lima Declaration on Tax Justice and Human Rights in the run-up to the Addis Summit. These and many such initiatives demand that tax justice underlie financing of the SDGs. Oxfam, along with our allies, also joins this call and demands for tax justice to fight inequality.
Written by: Pooja Parvati, Research Manager, Oxfam India
Photo credit: Srikanth Kolari
Find out how Oxfam India is enabling communities by working to provide a life of dignity and equal opportunity for all.Get to know more about Oxfam India`s latest projects.
Read More13,Sep,2023 | Savvy
29,Aug,2023 | Savvy
22,Aug,2023 | Savvy
21,Aug,2023 | Savvy
09,Aug,2023 | Savvy
07,Jul,2023 | Savvy
05,Jul,2023 | Savvy
03,Jul,2023 | Savvy
28,Jun,2023 | Savvy
27,Apr,2023 | Savvy
26,Apr,2023 | Savvy
17,Apr,2023 | Savvy
10,Apr,2023 | Savvy
07,Apr,2023 | Savvy
04,Apr,2023 | Savvy
30,Mar,2023 | Savvy
29,Mar,2023 | Savvy
29,Mar,2023 | Savvy
24,Mar,2023 | Savvy
23,Mar,2023 | Savvy
02,Mar,2023 | Savvy
27,Feb,2023 | Savvy
27,Feb,2023 | Savvy
22,Feb,2023 | Savvy
22,Dec,2022 | Savvy
24,Nov,2022 | Savvy
23,Nov,2022 | Savvy
23,Nov,2022 | Savvy
23,Nov,2022 | Savvy
14,Nov,2022 | Savvy
10,Oct,2022 | Savvy
06,Oct,2022 | Savvy
30,Sep,2022 | Savvy
19,Sep,2022 | Savvy
13,Sep,2022 | Savvy
01,Sep,2022 | Savvy
01,Sep,2022 | Savvy
22,Aug,2022 | Savvy
17,Aug,2022 | Savvy
09,Aug,2022 | Savvy
05,Aug,2022 | Savvy
03,Aug,2022 | Savvy
02,Aug,2022 | Savvy
01,Aug,2022 | Savvy
01,Aug,2022 | Savvy
28,Jul,2022 | Savvy
27,Jul,2022 | Savvy
27,Jul,2022 | Savvy
07,Jul,2022 | Savvy
09,Jun,2022 | Savvy
09,Jun,2022 | Savvy
30,May,2022 | Savvy
30,May,2022 | Savvy
29,May,2022 | Savvy
20,May,2022 | Savvy
18,May,2022 | Savvy
06,May,2022 | Savvy
05,May,2022 | Savvy
04,May,2022 | Savvy
02,May,2022 | Savvy
28,Apr,2022 | Savvy
28,Apr,2022 | Savvy
28,Apr,2022 | Savvy
28,Apr,2022 | Savvy
18,Apr,2022 | Savvy
05,Apr,2022 | Savvy
15,Mar,2022 | Savvy
07,Mar,2022 | Savvy
03,Mar,2022 | Savvy
02,Mar,2022 | Savvy
28,Feb,2022 | Savvy
28,Feb,2022 | Savvy
20,Feb,2022 | Savvy
18,Feb,2022 | Savvy
09,Feb,2022 | Savvy
03,Feb,2022 | Savvy
31,Jan,2022 | Savvy
31,Jan,2022 | Savvy
31,Jan,2022 | Savvy
25,Jan,2022 | Savvy
20,Jan,2022 | Savvy
16,Jan,2022 | Savvy
13,Jan,2022 | Savvy
07,Jan,2022 | Savvy
06,Jan,2022 | Savvy
03,Jan,2022 | Savvy
31,Dec,2021 | Savvy
23,Dec,2021 | Savvy
22,Dec,2021 | Savvy
16,Dec,2021 | Savvy
16,Dec,2021 | Savvy
08,Dec,2021 | Savvy
06,Dec,2021 | Savvy
04,Dec,2021 | Savvy
20,Nov,2021 | Savvy
13,Nov,2021 | Savvy
07,Nov,2021 | Savvy
07,Nov,2021 | Savvy
09,Oct,2021 | Savvy
07,Oct,2021 | Savvy
06,Oct,2021 | Savvy
05,Oct,2021 | Savvy
01,Oct,2021 | Savvy
23,Sep,2021 | Savvy
12,Sep,2021 | Savvy
06,Sep,2021 | Savvy
26,Aug,2021 | Savvy
15,Aug,2021 | Savvy
15,Aug,2021 | Savvy
02,Aug,2021 | Anisha
07,Jul,2021 | Savvy
13,Apr,2021 | Savvy
18,Mar,2021 | Savvy
10,Mar,2021 | Savvy
14,Feb,2021 | Savvy
11,Feb,2021 | Savvy
12,Jan,2021 | Savvy
12,Jan,2021 | Savvy
12,Jan,2021 | Savvy
28,Dec,2020 | Savvy
22,Dec,2020 | Savvy
17,Dec,2020 | Savvy
11,Dec,2020 | Savvy
24,Nov,2020 | Savvy
12,Oct,2020 | Anisha
01,Oct,2020 | Savvy
29,Sep,2020 | Savvy
25,Sep,2020 | Savvy
24,Sep,2020 | Savvy
14,Sep,2020 | Savvy
14,Sep,2020 | Savvy
03,Sep,2020 | Anisha
26,Aug,2020 | Savvy
25,Aug,2020 | Anisha
24,Aug,2020 | Savvy
21,Aug,2020 | Savvy
17,Aug,2020 | Savvy
16,Aug,2020 | Savvy
11,Aug,2020 | Savvy
07,Aug,2020 | Savvy
15,Jul,2020 | Savvy
15,Jul,2020 | Savvy
14,Jul,2020 | Savvy
01,Jul,2020 | Savvy
29,Jun,2020 | Savvy
29,Jun,2020 | Savvy
29,Jun,2020 | Savvy
25,Jun,2020 | Savvy
16,Jun,2020 | Savvy
09,Jun,2020 | Anonymous
02,Jun,2020 | Savvy
23,May,2020 | Savvy
21,May,2020 | Savvy
18,May,2020 | Savvy
17,May,2020 | radhika
16,May,2020 | radhika
07,May,2020 | radhika
06,May,2020 | Savvy
27,Mar,2020 | Anisha
03,Mar,2020 | Anisha
03,Mar,2020 | Anisha
04,Feb,2020 | Anisha
30,Jan,2020 | Anisha
20,Nov,2019 | Anisha
05,Nov,2019 | Anisha
30,Oct,2019 | Anisha
17,Sep,2019 | Anisha
23,Jul,2019 | Anisha
05,Jul,2019 | Anisha
27,Jun,2019 | Anisha
21,May,2019 | admin
21,May,2019 | admin
21,May,2019 | admin
21,May,2019 | admin
26,Apr,2019 | Anisha
18,Apr,2019 | Anisha
05,Apr,2019 | Anisha
19,Mar,2019 | ursila
19,Mar,2019 | ursila
15,Mar,2019 | ursila
15,Mar,2019 | ursila
27,Feb,2019 | Anisha
04,Feb,2019 | ursila
31,Dec,2018 | ursila
31,Dec,2018 | ursila
31,Dec,2018 | ursila
04,Dec,2018 | tiasdutta
03,Dec,2018 | ursila
01,Dec,2018 | ursila
01,Dec,2018 | ursila
01,Dec,2018 | ursila
15,Nov,2018 | Anisha
03,Nov,2018 | admin
03,Nov,2018 | admin
03,Nov,2018 | admin
12,Oct,2018 | Anisha
27,Sep,2016 | oxfamadmin
19,Aug,2016 | oxfamadmin
09,Aug,2016 | oxfamadmin
08,Aug,2016 | oxfamadmin
03,Aug,2016 | oxfamadmin
03,Aug,2016 | oxfamadmin
28,Jul,2016 | oxfamadmin
20,Jul,2016 | oxfamadmin
16,Jul,2016 | oxfamadmin
15,Jul,2016 | oxfamadmin
14,Jul,2016 | oxfamadmin
27,May,2016 | oxfamadmin
04,Apr,2016 | oxfamadmin
22,Mar,2016 | oxfamadmin
18,Mar,2016 | oxfamadmin
16,Mar,2016 | oxfamadmin
14,Mar,2016 | oxfamadmin
11,Mar,2016 | oxfamadmin
10,Mar,2016 | oxfamadmin
08,Mar,2016 | oxfamadmin
02,Mar,2016 | oxfamadmin
01,Mar,2016 | oxfamadmin
29,Feb,2016 | oxfamadmin
25,Feb,2016 | oxfamadmin
12,Feb,2016 | oxfamadmin
08,Feb,2016 | oxfamadmin
05,Feb,2016 | oxfamadmin
04,Feb,2016 | oxfamadmin
01,Feb,2016 | oxfamadmin
25,Jan,2016 | oxfamadmin
13,Jan,2016 | oxfamadmin
08,Jan,2016 | oxfamadmin
06,Jan,2016 | oxfamadmin
06,Jan,2016 | oxfamadmin
04,Jan,2016 | oxfamadmin
31,Dec,2015 | oxfamadmin
16,Dec,2015 | oxfamadmin
16,Dec,2015 | oxfamadmin
09,Dec,2015 | oxfamadmin
08,Dec,2015 | oxfamadmin
06,Dec,2015 | oxfamadmin
05,Dec,2015 | oxfamadmin
04,Dec,2015 | oxfamadmin
03,Dec,2015 | oxfamadmin
01,Dec,2015 | oxfamadmin
29,Nov,2015 | oxfamadmin
26,Nov,2015 | oxfamadmin
23,Nov,2015 | oxfamadmin
12,Nov,2015 | oxfamadmin
10,Nov,2015 | oxfamadmin
04,Nov,2015 | oxfamadmin
02,Nov,2015 | oxfamadmin
30,Oct,2015 | oxfamadmin
29,Oct,2015 | oxfamadmin
28,Oct,2015 | oxfamadmin
23,Oct,2015 | oxfamadmin
23,Oct,2015 | oxfamadmin
16,Oct,2015 | oxfamadmin
12,Oct,2015 | oxfamadmin
09,Oct,2015 | oxfamadmin
06,Oct,2015 | oxfamadmin
04,Oct,2015 | oxfamadmin
25,Sep,2015 | oxfamadmin
25,Sep,2015 | oxfamadmin
25,Sep,2015 | oxfamadmin
22,Sep,2015 | oxfamadmin
19,Sep,2015 | oxfamadmin
19,Sep,2015 | oxfamadmin
17,Sep,2015 | oxfamadmin
15,Sep,2015 | oxfamadmin
13,Sep,2015 | oxfamadmin
11,Sep,2015 | oxfamadmin
10,Sep,2015 | oxfamadmin
08,Sep,2015 | oxfamadmin
04,Sep,2015 | oxfamadmin
03,Sep,2015 | oxfamadmin
31,Aug,2015 | oxfamadmin
28,Aug,2015 | oxfamadmin
25,Aug,2015 | oxfamadmin
21,Aug,2015 | oxfamadmin
21,Aug,2015 | oxfamadmin
19,Aug,2015 | oxfamadmin
18,Aug,2015 | oxfamadmin
17,Aug,2015 | oxfamadmin
14,Aug,2015 | oxfamadmin
13,Aug,2015 | oxfamadmin
12,Aug,2015 | Avantika
11,Aug,2015 | oxfamadmin
07,Aug,2015 | oxfamadmin
05,Aug,2015 | oxfamadmin
04,Aug,2015 | oxfamadmin
03,Aug,2015 | oxfamadmin
30,Jul,2015 | oxfamadmin
30,Jul,2015 | oxfamadmin
29,Jul,2015 | oxfamadmin
28,Jul,2015 | oxfamadmin
27,Jul,2015 | oxfamadmin
25,Jul,2015 | oxfamadmin
24,Jul,2015 | oxfamadmin
23,Jul,2015 | oxfamadmin
21,Jul,2015 | oxfamadmin
20,Jul,2015 | oxfamadmin
17,Jul,2015 | oxfamadmin
16,Jul,2015 | oxfamadmin
14,Jul,2015 | oxfamadmin
13,Jul,2015 | oxfamadmin
12,Jul,2015 | oxfamadmin
10,Jul,2015 | oxfamadmin
09,Jul,2015 | oxfamadmin
08,Jul,2015 | oxfamadmin
07,Jul,2015 | oxfamadmin
05,Jul,2015 | oxfamadmin
03,Jul,2015 | oxfamadmin
03,Jul,2015 | oxfamadmin
02,Jul,2015 | oxfamadmin
01,Jul,2015 | oxfamadmin
30,Jun,2015 | oxfamadmin
27,Jun,2015 | oxfamadmin
27,Jun,2015 | oxfamadmin
26,Jun,2015 | oxfamadmin
23,Jun,2015 | oxfamadmin
22,Jun,2015 | oxfamadmin
21,Jun,2015 | oxfamadmin
18,Jun,2015 | oxfamadmin
17,Jun,2015 | oxfamadmin
15,Jun,2015 | oxfamadmin
14,Jun,2015 | oxfamadmin
13,Jun,2015 | oxfamadmin
11,Jun,2015 | oxfamadmin
10,Jun,2015 | oxfamadmin
08,Jun,2015 | oxfamadmin
06,Jun,2015 | oxfamadmin
05,Jun,2015 | oxfamadmin
04,Jun,2015 | oxfamadmin
03,Jun,2015 | oxfamadmin
02,Jun,2015 | oxfamadmin
01,Jun,2015 | oxfamadmin
30,May,2015 | oxfamadmin
30,May,2015 | oxfamadmin
29,May,2015 | oxfamadmin
28,May,2015 | oxfamadmin
25,May,2015 | oxfamadmin
25,May,2015 | oxfamadmin
25,May,2015 | oxfamadmin
25,May,2015 | oxfamadmin
25,May,2015 | oxfamadmin
20,May,2015 | oxfamadmin
17,May,2015 | oxfamadmin
17,May,2015 | oxfamadmin
17,May,2015 | oxfamadmin
16,May,2015 | oxfamadmin
13,May,2015 | oxfamadmin
12,May,2015 | oxfamadmin
12,May,2015 | oxfamadmin
10,May,2015 | oxfamadmin
09,May,2015 | oxfamadmin
06,May,2015 | oxfamadmin
06,May,2015 | oxfamadmin
05,May,2015 | oxfamadmin
02,May,2015 | oxfamadmin
02,May,2015 | oxfamadmin
02,May,2015 | oxfamadmin
01,May,2015 | oxfamadmin
30,Apr,2015 | oxfamadmin
30,Apr,2015 | oxfamadmin
30,Apr,2015 | oxfamadmin
29,Apr,2015 | oxfamadmin
28,Apr,2015 | oxfamadmin
28,Apr,2015 | oxfamadmin
27,Apr,2015 | oxfamadmin
26,Apr,2015 | oxfamadmin
26,Apr,2015 | oxfamadmin
25,Apr,2015 | oxfamadmin
24,Apr,2015 | oxfamadmin
23,Apr,2015 | oxfamadmin
22,Apr,2015 | oxfamadmin
22,Apr,2015 | oxfamadmin
21,Apr,2015 | oxfamadmin
21,Apr,2015 | oxfamadmin
20,Apr,2015 | Avantika
16,Apr,2015 | oxfamadmin
12,Apr,2015 | oxfamadmin
11,Apr,2015 | oxfamadmin
08,Apr,2015 | oxfamadmin
06,Apr,2015 | oxfamadmin
03,Apr,2015 | oxfamadmin
03,Apr,2015 | oxfamadmin
30,Mar,2015 | oxfamadmin
26,Mar,2015 | oxfamadmin
24,Mar,2015 | oxfamadmin
24,Mar,2015 | oxfamadmin
23,Mar,2015 | oxfamadmin
17,Mar,2015 | oxfamadmin
12,Mar,2015 | oxfamadmin
07,Mar,2015 | oxfamadmin
07,Mar,2015 | oxfamadmin
04,Mar,2015 | oxfamadmin
02,Mar,2015 | oxfamadmin
02,Mar,2015 | oxfamadmin
28,Feb,2015 | oxfamadmin
27,Feb,2015 | oxfamadmin
26,Feb,2015 | oxfamadmin
25,Feb,2015 | oxfamadmin
25,Feb,2015 | oxfamadmin
25,Feb,2015 | oxfamadmin
25,Feb,2015 | oxfamadmin
16,Feb,2015 | oxfamadmin
06,Feb,2015 | oxfamadmin
30,Jan,2015 | oxfamadmin
22,Jan,2015 | oxfamadmin
20,Jan,2015 | oxfamadmin
20,Jan,2015 | oxfamadmin
06,Jan,2015 | oxfamadmin
29,Dec,2014 | oxfamadmin
22,Nov,2014 | oxfamadmin
22,Nov,2014 | oxfamadmin
22,Nov,2014 | oxfamadmin
22,Nov,2014 | oxfamadmin
22,Nov,2014 | oxfamadmin
22,Nov,2014 | oxfamadmin
22,Nov,2014 | oxfamadmin
22,Nov,2014 | oxfamadmin
22,Nov,2014 | oxfamadmin
22,Nov,2014 | oxfamadmin
22,Nov,2014 | oxfamadmin
22,Nov,2014 | oxfamadmin
22,Nov,2014 | oxfamadmin
07,Nov,2014 | abhij89
04,Sep,2014 | Anonymous
03,Sep,2014 | Anonymous