Thursday, 24 April 2014

DD209 Running The Economy : Absolutely Stunned !

Page 311 in the text book says

"Recent empirical research finds that being satisfied with one's income, and practicing some form of religion, are positively related to tax morale."

Considering the church doesn't pay tax and indeed claims tax back from contributions and investments, I'm not sure what the point or validity of this unreferenced statement is, and is the author therefore suggesting that atheists somehow have less tax morale - really.

John Redwoods blog (http://johnredwoodsdiary.com/2014/02/21/should-churches-pay-more-tax/) says :


Churches legally avoid large amounts of tax. They receive substantial donations from some of their richer members on death. These gifts are free of Inheritance Tax.

They receive substantial donations from their living members. Much of this money is gift aided, so the Churches receive large sums from the state as repayment of the Income Tax which the donors had paid before their gift.

The Churches, led by the Church of England, have tax free Endowment funds which generate income and capital gains that are untaxed. Some of this money is used for current spending. The Church Commissioners manage a fund worth around £5,500 million.


I am absolutely stunned that this sort of nonsense is included in a economics text, we had enough of this on the A222 philosophy course.

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