Taxation and the Working Class, 1915–24

Abstract

The working class's experience of the tax system is an important aspect of its relationship with the state. This article examines the nature of this connexion during the First World War and its aftermath when fiscal policy was subject to intense political pressure. Two themes are paramount, those of resistance and appropriation. From the point of view of governments the less tax collection encouraged class-based opposition the better. Because the level of tax payments depended on varied circumstances within social groups – caused by family size or patterns of consumption, for example – the lines of differentiation were more finely drawn than the contours of social class. Many tax payments affected the individual as a citizen within the political system rather than as a producer within the economy. The articulation of resentment about tax burdens with conflicts in the economy was not therefore automatic. However, when governments were closely involved in the running of the economy, as in the First World War, it was helpful to use the tax system as an instrument of social justice, so that efforts to generate a common purpose might not be impaired by resentment of the disproportionate gains of others. In these circumstances taxpayers might well be encouraged to see the tax system as a way of appropriating or limiting the wealth of other classes, in a way which did bring it into closer relationship with the economy.