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The Joy of Tax
In The Joy of Tax, tax campaigner and creator of ‘Corbynomics’, Richard Murphy challenges almost every idea you have about tax. For him, tax is fundamentally about the ideas that shape the sort of society we want to live in, not technicalities. His intention is to demonstrate that there is indeed a joy in tax, and by embracing it we can create a fairer society and change the world for the better.
Tax has been a feature of human society for a very long time. Almost no one gives tax a good press even though, as Richard Murphy argues, it has been fundamental to the development of democracy the world over.
Whilst we may not like tax very much, in contrast it is clear that we really do like the public services which governments provide. So much so, in fact, that for most of the last 300 years, people have been more than happy for governments to run deficits by spending more than they raise in taxation.
2008 apparently changed all that. The issues of debt, deficits, cuts and austerity have dominated the political agenda ever since. Virtually every aspect of the government's finances and how to rearrange them in the forlorn hope of balancing the books has been discussed in great detail. Despite that, there has been almost no real discussion during this period about what tax is for and how it contributes to the creation of the society we aspire to.
Tax has been a feature of human society for a very long time. Almost no one gives tax a good press even though, as Richard Murphy argues, it has been fundamental to the development of democracy the world over.
Whilst we may not like tax very much, in contrast it is clear that we really do like the public services which governments provide. So much so, in fact, that for most of the last 300 years, people have been more than happy for governments to run deficits by spending more than they raise in taxation.
2008 apparently changed all that. The issues of debt, deficits, cuts and austerity have dominated the political agenda ever since. Virtually every aspect of the government's finances and how to rearrange them in the forlorn hope of balancing the books has been discussed in great detail. Despite that, there has been almost no real discussion during this period about what tax is for and how it contributes to the creation of the society we aspire to.
256 pages, Hardcover
First published March 26, 2015
44 people are currently reading
748 people want to read
About the author
Richard Murphy
7 books25 followersLibrarian Note: There is more than one author by this name in the Goodreads database.
Richard Murphy is an English accountant and political economist who campaigns on issues of tax avoidance, tax evasion and government. He advises the Trades Union Congress on economics and taxation, and founded the Tax Justice Network. He is a Professor of Accounting Practice at University of Sheffield Management School.
Richard Murphy is an English accountant and political economist who campaigns on issues of tax avoidance, tax evasion and government. He advises the Trades Union Congress on economics and taxation, and founded the Tax Justice Network. He is a Professor of Accounting Practice at University of Sheffield Management School.
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Displaying 1 - 25 of 25 reviews
October 20, 2015
HITS THE SPOT!
After David Cameron gave Richard Murphys "The Joy of Tax" a bum review at the Tory party conference I ordered myself a copy, after all being ridiculed by the ridiculous has to be a positive?
The book opens with a whirlwind history of taxation from the time of the Ancients through the rise of Christianity and on to the present. Murphy then answers the question of what tax is, what money is, and how it gets created, before attempting to re-conceptualise tax as something that comes after spending and is not a pre-condition of spending, but rather the government clawing back money it has already spent to prevent inflationary pressures building up in the economy. This has implications in the current situation where Austerity is held up as the only way forward while the economy stutters and splutters onwards, shedding social obligations at an alarming rate. In Murphys view, as long as there is no sign of inflation (its 0% for the moment) money can be created, after all private banks can do it, and the State has done it with £300bn+ fed into the Financial Sector. Why can't it be done to meet social obligations and bring the economy back to life?
As someone who has been a leading light of the Tax Justice Network, Murphy unsurprisingly addresses problems with the fairness of the current tax system. An interesting graph (p140) makes it clear that the UK tax system is far from progressive, and in fact taking as a whole it almost functions as a flat tax with all deciles paying about 31-36% of income in taxes, apart from the poorest decile which pays out 48%! Some are evidently in it more than others. Other issues he addresses are the tax dodging of transnationals and the filthy rich, National Insurance which he argues is a tax on jobs, regressive indirect taxes such as VAT, plus the regressive council tax, and equalising the tax rate for all income regardless of whether its salary or wages, dividends, interest or capital gains.
To sum up, "The Joy of Tax" while far from perfectly written, is a fine book that pulls back the curtains and questions the orthodoxy of how tax, money and government spending actually work. In doing so, and this is the great strength of the book, Murphy points to a possible route away from the sterile Austerity that monopolises what passes for political and economic debate with its endless cuts (Family Tax Credits, Unemployment Benefit, and Disability Benefits, and just about every social program under the sun, as well as George Osbornes two child policy for the working and non-working poor) and towards a fairer, and more civilised future.
Readers looking for more detail and another view of the UK tax system should look to Richard Brooks "The Great Tax Robbery"; with regard to tax havens and those who abuse them see "Treasure Islands" by Nicholas Shaxson; and finally, for a brilliant critique of Austerity I'd not hesitate to recommend Mark Blyths "Austerity: The History of a Dangerous Idea".
After David Cameron gave Richard Murphys "The Joy of Tax" a bum review at the Tory party conference I ordered myself a copy, after all being ridiculed by the ridiculous has to be a positive?
The book opens with a whirlwind history of taxation from the time of the Ancients through the rise of Christianity and on to the present. Murphy then answers the question of what tax is, what money is, and how it gets created, before attempting to re-conceptualise tax as something that comes after spending and is not a pre-condition of spending, but rather the government clawing back money it has already spent to prevent inflationary pressures building up in the economy. This has implications in the current situation where Austerity is held up as the only way forward while the economy stutters and splutters onwards, shedding social obligations at an alarming rate. In Murphys view, as long as there is no sign of inflation (its 0% for the moment) money can be created, after all private banks can do it, and the State has done it with £300bn+ fed into the Financial Sector. Why can't it be done to meet social obligations and bring the economy back to life?
As someone who has been a leading light of the Tax Justice Network, Murphy unsurprisingly addresses problems with the fairness of the current tax system. An interesting graph (p140) makes it clear that the UK tax system is far from progressive, and in fact taking as a whole it almost functions as a flat tax with all deciles paying about 31-36% of income in taxes, apart from the poorest decile which pays out 48%! Some are evidently in it more than others. Other issues he addresses are the tax dodging of transnationals and the filthy rich, National Insurance which he argues is a tax on jobs, regressive indirect taxes such as VAT, plus the regressive council tax, and equalising the tax rate for all income regardless of whether its salary or wages, dividends, interest or capital gains.
To sum up, "The Joy of Tax" while far from perfectly written, is a fine book that pulls back the curtains and questions the orthodoxy of how tax, money and government spending actually work. In doing so, and this is the great strength of the book, Murphy points to a possible route away from the sterile Austerity that monopolises what passes for political and economic debate with its endless cuts (Family Tax Credits, Unemployment Benefit, and Disability Benefits, and just about every social program under the sun, as well as George Osbornes two child policy for the working and non-working poor) and towards a fairer, and more civilised future.
Readers looking for more detail and another view of the UK tax system should look to Richard Brooks "The Great Tax Robbery"; with regard to tax havens and those who abuse them see "Treasure Islands" by Nicholas Shaxson; and finally, for a brilliant critique of Austerity I'd not hesitate to recommend Mark Blyths "Austerity: The History of a Dangerous Idea".
November 2, 2016
Benjamin Franklin once wrote ‘in this world nothing can be said to be certain, except death and taxes’. I would add ‘and your computer crashing’ to that, but the sentiment is still valid. Richard Murphy has been a voracious campaigner on all things tax, creator of ‘Corbynomics’, and in the ironically titled, Joy of Tax, fully intends to challenge every idea that you have about taxes.
Whilst most people don’t like paying tax, we seem more than happy to accept the benefits and services that a government provides from their tax income, so much so that populations expect governments to spend more than they can raise from tax and run a deficit. That changed in 2008 after the global finance system derailed and the political debate have been dominated by the spectres of austerity, debt and cuts. This hostile discussion has meant that the debate on why we need tax, and how it can benefit society have been ignored ever since. It is this debate that Murphy wants to bring to the fore in this book.
But, it’s a taxing subject…
He makes a good evaluation of the present system, with its few qualities and many flaws and overall it was an interesting read. His proposals are bold and in certain cases innovative, and rightly he argues we need to dramatically simplify the tax system to stop excessive revenue loss from loopholes. All sensible stuff, but Murphy comes across as a bit preachy about it all and it grates a little in the end. Generally ok, and if you have an interest in all thing financial then you may get more out of it than I did. 2.5 stars overall.
Whilst most people don’t like paying tax, we seem more than happy to accept the benefits and services that a government provides from their tax income, so much so that populations expect governments to spend more than they can raise from tax and run a deficit. That changed in 2008 after the global finance system derailed and the political debate have been dominated by the spectres of austerity, debt and cuts. This hostile discussion has meant that the debate on why we need tax, and how it can benefit society have been ignored ever since. It is this debate that Murphy wants to bring to the fore in this book.
But, it’s a taxing subject…
He makes a good evaluation of the present system, with its few qualities and many flaws and overall it was an interesting read. His proposals are bold and in certain cases innovative, and rightly he argues we need to dramatically simplify the tax system to stop excessive revenue loss from loopholes. All sensible stuff, but Murphy comes across as a bit preachy about it all and it grates a little in the end. Generally ok, and if you have an interest in all thing financial then you may get more out of it than I did. 2.5 stars overall.
December 1, 2015
It's a shame that the publishers chose not to replicate the green ink in which this book was clearly written. And rather tempting to misquote a quote, itself misattributed to Samuel Johnson: "The policy prescriptions in this book are stimulating and sensible. But what is stimulating is not sensible: what is sensible is not stimulating."
Murphy has many sensible things to say about what a tax system is designed to achieve. But I don't think his principles are as contentious as he himself seems to think. What is contentious is the ability to implement them in a large, complex, open and largely private economy, where one isn't starting with a blank sheet of paper - a practical issue that he acknowledges but doesn't proceed to solve. And as I will mention below there are principles which most would argue as sensible - avoiding distortions, creating certainty so individuals and business can plan, and maintaining civil liberties - which are entirely absent and would significantly change his policy prescriptions.
Despite the title, the more stimulating parts of the book are about monetary policy, which to be fair Murphy regards, in a country with its own sovereign currency, as inextricably linked with fiscal policy and hence taxation.
As with many similar polemic books, the author has a habit of announcing his "discovery" of things that are hardly a secret, for example, that banks create money by making loans. The Bank of England apparently "had to admit this in 2014" only after reading Murphy's blog - he's so proud of this he repeats it three times. In reality, Charles Goodhart, a founding member of the post-independence Monetary Policy Committee at the Bank was writing about this in 1984 ("Monetary Theory and Practice").
More contentiously he seems to regard Government debt as a free money making machine. "To regard Government debt as some sort of burden on future generations is absurd" we are told - and justifies this by pointing out that much Government debt is held by pension funds. Those would, of course, be the same pension funds whose main purpose is to transfer wealth from future generations to pensioners by owning claims on assets.
Instead he argues strongly that governments could, in theory, not tax at all and simply print money. But then oddly - and this is where despite claiming to be broadly neutral on a left-right spectrum - he then takes an odd lurch. Far from eliminating distortions "the tax system is designed to have an economic impact and so must be big enough to deliver it." - the joy of tax indeed.
He quite rightly argues for the need for fiscal stimulus in a balance sheet recession (see Richard Koo and his argument that the "government as borrower of last resort") and I have sympathy with his view that using QE to fund infrastructure spending and targeted fiscal boosts (tax cuts for those most likely to spend it) would be a sensible policy to boost demand, if conventional and unconventional monetary tools fail. But crucially this needs to be a temporary not a permanent feature
One of his key arguments is that "all the money we ever need to make things happen can be created out of thin air". The threat of thereby debasing currency - either by domestic inflation or by depreciation - seems not to concern him. Inflation is dismissed as a relic of the past which "isn't prevalent in modern economies" - but of course that is in part because modern economies are run with independent central banks specifically tasked with keeping inflation under control, whereas past inflation was in the era where Governments printed money to fund deficits. And devaluation - a loss of worldwide purchasing power - merits nary a mention.
Murphy would counter that QE hasn't had the same effect but this was a temporary policy, introduced at the height of a global financial crisis, and implemented by an independent central Bank whose very mandate gives them a low - but non-zero - inflation target. A permanent tool in the hands of politicians is likely to have a rather different impact.
He does effectively dismiss the libertarian view of tax stating correctly that tax revenue "does not become the property of some alien body. It is the property of a government in which we have a stake, and in which we participate." However this libertarian view is much more prevalent in the US than UK. More pertinently for the domestic situation, Murphy goes on to argue that "every time a politician says they are spending taxpayers' money they are making another statement that is simply untrue. Tax is not taxpayers' money. It is the government's money" - technically true but his own grammar defeats his logic. Tax revenue is, he is right, the money of taxpayers plural (not the money of the individual taxpayers) given his own logic that taxation is linked with representation, and the "spending taxpayers' money" mantra is quite right to suggest that those entrusted with the funds should spend them prudently and efficiently. There is no joy in tax for taxes sake for most people, other than Mr Murphy it seems.
The distorting effect of taxes are actually in his view a good thing, as stated above, as is constant tinkering with the system "having levers to pull is vital." rather than the certainty and stability which most would regard as sensible features of a well designed system.
Indeed tax should in his world view be used it seems mainly to tax "harmful" things out of existence - to the author these include landlords (not needed - state can print fee money to build as many houses as needed), banks and the financial sector generally, large private limited companies as well as the necessity for anyone to actually work (no need given the Government can hand out free money).
Practicality - in particular the "I wouldn't start from here" point - seems to also pass him by in his overly simplistic approach. Advocating abolish national insurance is hardly news: successive Treasury teams in the last 30 years have tried but failed to find a way of doing it without creating new distortions, a backlash from the losers (which can't always be the "rich" / "bankers", and "landlords") who end up needing to be compensated, and a hole in the Government finances (albeit Murphy doesn't seem concerned re the latter point). The last great theoretical attempt for a clean-sheet approach to changing UK tax was the Community Charge (aka poll tax), and we all know where that ended.
Similarly civil liberties are for the birds - in his world we would have armies of tax inspectors in every town with full access to everyone's private bank accounts - rather vital since his big idea is a transaction tax any time money moves in or out of anyone's account.
Wealth taxes and income taxes are the same thing he says - "the reality is that as far as anyone is concerned (and I stress anyone) £1 of accumulated wealth is identical in economic value to £1 from any other source." But then he explains this using realised capital gains (my emphasis) versus inccome. Fair enough. but there is a massive difference to anyone (and now I stress anyone) in £1 of cash income, and £1 of extra paper wealth apparently accumulated by Zoopla revaluing your property. And yet he uses his argument to support wealth taxes based on Zoopla like data.
He is on stronger grounds in arguing for realised capital gains, even on residences, to be taxed as income. But he discusses inflation indexation of capital gains and admits there were reasons for having it, otherwise "people would be taxed not on their wealth but on the falling value of their money" but as apparently inflation has been abolished he argues this is no longer needed.
Overall Murphy concludes correctly that tax is integral to the contract between a government and the people "that tax must reflect the values and priorities of the people. If it does people will willingly pay it and return the government that charges it to power.". The results of the 2015 General Election and the current polls (November 2015) are rather inconvenient then for his own policy prescriptions.
Murphy has many sensible things to say about what a tax system is designed to achieve. But I don't think his principles are as contentious as he himself seems to think. What is contentious is the ability to implement them in a large, complex, open and largely private economy, where one isn't starting with a blank sheet of paper - a practical issue that he acknowledges but doesn't proceed to solve. And as I will mention below there are principles which most would argue as sensible - avoiding distortions, creating certainty so individuals and business can plan, and maintaining civil liberties - which are entirely absent and would significantly change his policy prescriptions.
Despite the title, the more stimulating parts of the book are about monetary policy, which to be fair Murphy regards, in a country with its own sovereign currency, as inextricably linked with fiscal policy and hence taxation.
As with many similar polemic books, the author has a habit of announcing his "discovery" of things that are hardly a secret, for example, that banks create money by making loans. The Bank of England apparently "had to admit this in 2014" only after reading Murphy's blog - he's so proud of this he repeats it three times. In reality, Charles Goodhart, a founding member of the post-independence Monetary Policy Committee at the Bank was writing about this in 1984 ("Monetary Theory and Practice").
More contentiously he seems to regard Government debt as a free money making machine. "To regard Government debt as some sort of burden on future generations is absurd" we are told - and justifies this by pointing out that much Government debt is held by pension funds. Those would, of course, be the same pension funds whose main purpose is to transfer wealth from future generations to pensioners by owning claims on assets.
Instead he argues strongly that governments could, in theory, not tax at all and simply print money. But then oddly - and this is where despite claiming to be broadly neutral on a left-right spectrum - he then takes an odd lurch. Far from eliminating distortions "the tax system is designed to have an economic impact and so must be big enough to deliver it." - the joy of tax indeed.
He quite rightly argues for the need for fiscal stimulus in a balance sheet recession (see Richard Koo and his argument that the "government as borrower of last resort") and I have sympathy with his view that using QE to fund infrastructure spending and targeted fiscal boosts (tax cuts for those most likely to spend it) would be a sensible policy to boost demand, if conventional and unconventional monetary tools fail. But crucially this needs to be a temporary not a permanent feature
One of his key arguments is that "all the money we ever need to make things happen can be created out of thin air". The threat of thereby debasing currency - either by domestic inflation or by depreciation - seems not to concern him. Inflation is dismissed as a relic of the past which "isn't prevalent in modern economies" - but of course that is in part because modern economies are run with independent central banks specifically tasked with keeping inflation under control, whereas past inflation was in the era where Governments printed money to fund deficits. And devaluation - a loss of worldwide purchasing power - merits nary a mention.
Murphy would counter that QE hasn't had the same effect but this was a temporary policy, introduced at the height of a global financial crisis, and implemented by an independent central Bank whose very mandate gives them a low - but non-zero - inflation target. A permanent tool in the hands of politicians is likely to have a rather different impact.
He does effectively dismiss the libertarian view of tax stating correctly that tax revenue "does not become the property of some alien body. It is the property of a government in which we have a stake, and in which we participate." However this libertarian view is much more prevalent in the US than UK. More pertinently for the domestic situation, Murphy goes on to argue that "every time a politician says they are spending taxpayers' money they are making another statement that is simply untrue. Tax is not taxpayers' money. It is the government's money" - technically true but his own grammar defeats his logic. Tax revenue is, he is right, the money of taxpayers plural (not the money of the individual taxpayers) given his own logic that taxation is linked with representation, and the "spending taxpayers' money" mantra is quite right to suggest that those entrusted with the funds should spend them prudently and efficiently. There is no joy in tax for taxes sake for most people, other than Mr Murphy it seems.
The distorting effect of taxes are actually in his view a good thing, as stated above, as is constant tinkering with the system "having levers to pull is vital." rather than the certainty and stability which most would regard as sensible features of a well designed system.
Indeed tax should in his world view be used it seems mainly to tax "harmful" things out of existence - to the author these include landlords (not needed - state can print fee money to build as many houses as needed), banks and the financial sector generally, large private limited companies as well as the necessity for anyone to actually work (no need given the Government can hand out free money).
Practicality - in particular the "I wouldn't start from here" point - seems to also pass him by in his overly simplistic approach. Advocating abolish national insurance is hardly news: successive Treasury teams in the last 30 years have tried but failed to find a way of doing it without creating new distortions, a backlash from the losers (which can't always be the "rich" / "bankers", and "landlords") who end up needing to be compensated, and a hole in the Government finances (albeit Murphy doesn't seem concerned re the latter point). The last great theoretical attempt for a clean-sheet approach to changing UK tax was the Community Charge (aka poll tax), and we all know where that ended.
Similarly civil liberties are for the birds - in his world we would have armies of tax inspectors in every town with full access to everyone's private bank accounts - rather vital since his big idea is a transaction tax any time money moves in or out of anyone's account.
Wealth taxes and income taxes are the same thing he says - "the reality is that as far as anyone is concerned (and I stress anyone) £1 of accumulated wealth is identical in economic value to £1 from any other source." But then he explains this using realised capital gains (my emphasis) versus inccome. Fair enough. but there is a massive difference to anyone (and now I stress anyone) in £1 of cash income, and £1 of extra paper wealth apparently accumulated by Zoopla revaluing your property. And yet he uses his argument to support wealth taxes based on Zoopla like data.
He is on stronger grounds in arguing for realised capital gains, even on residences, to be taxed as income. But he discusses inflation indexation of capital gains and admits there were reasons for having it, otherwise "people would be taxed not on their wealth but on the falling value of their money" but as apparently inflation has been abolished he argues this is no longer needed.
Overall Murphy concludes correctly that tax is integral to the contract between a government and the people "that tax must reflect the values and priorities of the people. If it does people will willingly pay it and return the government that charges it to power.". The results of the 2015 General Election and the current polls (November 2015) are rather inconvenient then for his own policy prescriptions.
November 9, 2020
The author is an embarrassment to the CPA name.
March 17, 2021
Reading this along with The Deficit Myth has substantially reduced my ignorance of macroeconomics. Murphy's book in particular has shown how our government could do so much more good had they the will. All the tools are there. Highly recommended.
March 15, 2018
I think everybody should read it. It's about how tax works and how it should work.
May 28, 2020
This was my introduction to how taxes work. I was a victim of shock on how much taxes I had to pay. This was a good intro to why I should be happy am paying tax.
October 10, 2017
Borrowed this from the library to see why a local politician might have purchased it on his gov credit card (and then had to reimburse the cost, along with an other £12000 also spent for personal things). Also, the title intrigued me.
I confess to know little about tax, and can see from other comments that there are conflicting thoughts as to whether the ideas are correct or not. That aside, it was written simply enough for the uneducated to understand, for the most part, with some radical ideas on how tax should be applied. Quite left of centre I think, though I have no problems with taxing the wealthy or putting tax havens out of business (even though I live in one).
The author does like to blow his own trumpet at times, which I found a little grating, and the final imaginary budget speech was a bit boring, as it was a recap of the rest of the book (OK to cement the ideas, but my eyes glazed over before too long and I sped read most of it).
I confess to know little about tax, and can see from other comments that there are conflicting thoughts as to whether the ideas are correct or not. That aside, it was written simply enough for the uneducated to understand, for the most part, with some radical ideas on how tax should be applied. Quite left of centre I think, though I have no problems with taxing the wealthy or putting tax havens out of business (even though I live in one).
The author does like to blow his own trumpet at times, which I found a little grating, and the final imaginary budget speech was a bit boring, as it was a recap of the rest of the book (OK to cement the ideas, but my eyes glazed over before too long and I sped read most of it).
November 3, 2022
A thoroughly interested read. I would split this book into two parts - Murphy’s observations on the issues of UK taxation (i.e. Council Tax and NI being very regressive, governments pursuing balanced budgets for their own sake) and Murphy’s ideas on how to fix this. His observations are compelling and enlightening - particularly his point that taxation is to pay for spending already incurred, not vice-versa. His ideas on how to fix the issues are idealistic but lack pragmatism. Many are good ideas and could likely be introduced, but I feel if a party campaigned to win an election on some of them they would be trounced. Murphy is of course a chartered accountant and not a politician, but nevertheless the latter part of this book failed to win me over completely. However - Murphy is right overall that taxation is failing in the UK to redistribute wealth and lift people out of poverty, and that needs to change. The question of how is still open.
October 14, 2016
I followed Richard Murphy’s work a few years ago due to an interest in his work regarding tax evasion and tax avoidance. It was very interesting to see an accountant and activists writing important reports which were then debated in the European Parliament. So, when I saw this in a bookshop in Cardiff, I bought it.
The book makes some very important and prescient points about tax and money creation. However, Mr. Murphy makes a conceptual leap regarding tax, and assumes far too much about the relationship between tax, the state and culture. He infers based upon the British context and then applied it to European and global ethics and policy.
‘’Tax and ethics and morality are inextricably linked’’ (p.123) Really? He clearly has not studied the culture and tax levels in Japan and other low tax, moral societies.
I found many of his assumptions and arguments tenuous, in particular about the relationship between paying tax and voter turnout. On the other hand, some of his conclusions are quite logical such as his argument for more financial education. Nonetheless, the key problem I have with the book is how it is written.
Richard Murphy is clearly very angry and self-confident. However, he is not a political economist and it shows. By the time I got to the final two chapters I could not take him seriously. He has a very big ego, as shown by how much he points to his own impact, and the impact of his colleagues, and lack of reflection.
A disappointing book.
The book makes some very important and prescient points about tax and money creation. However, Mr. Murphy makes a conceptual leap regarding tax, and assumes far too much about the relationship between tax, the state and culture. He infers based upon the British context and then applied it to European and global ethics and policy.
‘’Tax and ethics and morality are inextricably linked’’ (p.123) Really? He clearly has not studied the culture and tax levels in Japan and other low tax, moral societies.
I found many of his assumptions and arguments tenuous, in particular about the relationship between paying tax and voter turnout. On the other hand, some of his conclusions are quite logical such as his argument for more financial education. Nonetheless, the key problem I have with the book is how it is written.
Richard Murphy is clearly very angry and self-confident. However, he is not a political economist and it shows. By the time I got to the final two chapters I could not take him seriously. He has a very big ego, as shown by how much he points to his own impact, and the impact of his colleagues, and lack of reflection.
A disappointing book.
July 13, 2016
Now I can understand how people wouldn't find the topic of this book riveting, but it is none the less important. Tax is something that effects our daily lives everything from buying a new top to going to the doctors. Tax is an integral part of our lives but I never realised before reading this book just how complicated our tax system is or how much our society relies on the tax system. There were bits in this book I didn't agree with and bits that really opened my mind (especially about national insurance). If you're a complete tax novice like me but you're interested in where your tax money goes (and comes from) or where it could go then give this book a try. An easy and enjoyable read for the topic.
April 16, 2019
A highly accessible and positive assessment of the benefits of taxation, how it can be improved and made to work to create a more egalitarian society; a fine companion piece, if you will, to Kate Pickett and Richard Wilkinson's 'The Spirit Level'.
January 3, 2020
Great economic analysis, that explains the purpose of taxation in normal language.
April 7, 2021
I have never understood tax (or most financial things) and I still don't understand it much more after reading this book. But although this book tries to give a clear explanation of tax, that is not its primary purpose. Its primary purpose is to show what is wrong with the current UK tax system and how it should be changed, at least in the opinion of the author. I understood this a lot more than the tax explanation and much of it made a lot of sense to me.
Richard Murphy shows how, the richer one is, the less tax one pays, at least in percentage terms. This is clearly unfair and should be rectified. He covers various principles behind what makes a good tax system, including who and what should be taxed and how. He also suggests combining the tax and benefits systems (something which I thought of a long time ago - it was nice to know that a real tax expert has had the same idea).
Regarding the explanation of how tax works, Murphy says that it is not necessary for the purpose of raising money for the government since they can always create their own money by borrowing it from the Bank of England. However, various reasons for raising tax are provided, such as enabling redistribution of money from richer to poorer.
The book also explains where money comes from; essentially it is created whenever a bank lends money. Because money can be created from nothing at any time, the suggestion is that there is no need for the government to balance its budget or for it to attempt to pay off the national debt. In the good times, the national debt will reduce automatically as a percentage of the country's GDP by virtue of the GDP increasing.
I would love to have sat down with the author and discussed this book with him. There was much that I found hard to believe but would like to. In particular, if there is no focus on paying down the national debt, will the country not find itself paying more and more in interest payments? This is money that could be spent on new hospitals and other infrastructure. The interest may not currently be much, give that interest rates are at an all time low but this will not always be the case.
Richard Murphy shows how, the richer one is, the less tax one pays, at least in percentage terms. This is clearly unfair and should be rectified. He covers various principles behind what makes a good tax system, including who and what should be taxed and how. He also suggests combining the tax and benefits systems (something which I thought of a long time ago - it was nice to know that a real tax expert has had the same idea).
Regarding the explanation of how tax works, Murphy says that it is not necessary for the purpose of raising money for the government since they can always create their own money by borrowing it from the Bank of England. However, various reasons for raising tax are provided, such as enabling redistribution of money from richer to poorer.
The book also explains where money comes from; essentially it is created whenever a bank lends money. Because money can be created from nothing at any time, the suggestion is that there is no need for the government to balance its budget or for it to attempt to pay off the national debt. In the good times, the national debt will reduce automatically as a percentage of the country's GDP by virtue of the GDP increasing.
I would love to have sat down with the author and discussed this book with him. There was much that I found hard to believe but would like to. In particular, if there is no focus on paying down the national debt, will the country not find itself paying more and more in interest payments? This is money that could be spent on new hospitals and other infrastructure. The interest may not currently be much, give that interest rates are at an all time low but this will not always be the case.
July 16, 2019
The Joy of Tax is an interesting read, if nothing else. Though I would argue that many of his proposals are impractical, perhaps impossible, within the constraints of the British political system, Richard Murphy nonetheless offers a compelling alternative to conventional wisdom on how tax works.
Being relatively economically illiterate myself (certainly no match for either Murphy or the traditional experts he seeks to counter), I can't offer much of an appraisal of his arguments. However, I did still absorb a wealth of new information on how tax actually works, and how debt and money are actually created.
Well worth reading with a healthy dose of scepticism and an open-mind, if such a thing is possible.
Being relatively economically illiterate myself (certainly no match for either Murphy or the traditional experts he seeks to counter), I can't offer much of an appraisal of his arguments. However, I did still absorb a wealth of new information on how tax actually works, and how debt and money are actually created.
Well worth reading with a healthy dose of scepticism and an open-mind, if such a thing is possible.
April 13, 2024
Some very interesting concepts and I have a lot of sympathy for the views expressed. I also like the idea of a financial levy tax to replace National Insurance and the taxation of companies based on the assets employees located in the UK so that profit shifting to other countries is negated. Recommended to me by my friend Denis Cobell, I enjoyed having my thoughts on an equitable and representative tax regime challenged by the author. Sadly I cannot see the wholesale implementation of the system recommended in the final chapter called"As the Chancellor might put it" but there are many worthwhile ideas that could possibly be taken on by future chancellors.
July 8, 2020
Author Richard Murphy, with his experience and research has written a unique book called "Joy of Tax", which proves the how Joyful a taxation can be. However, there is a difference between the expectations and reality, shown in this book in an effective manner.
August 29, 2018
I enjoyed the first half of this book but found the second half a bit repetitive and dry. The UK approach to taxes is quite refreshing, though.
September 9, 2020
I Loved Chapter 9 "As the Chancellor might put it". Fantastic! This book is a MUST read for any political parties proposing tax reforn during an election.
May 24, 2021
I had virtually no knowledge on quantitative easing/progressive taxes/régressive taxes. This book explained all that to me and more!
February 19, 2016
A concise and very clear exposition of a vision for a different system of tax and of the nation's finances generally. Naturally it has been ridiculed and rubbished by the wilfully ignorant and those who have most to gain from the current mess; but they should debate every proposition Murphy puts forward. It's good to think he is one of the advisers to McDonnell.
July 4, 2016
Contains some interesting concepts, but is written in a very soapbox-like manner. Beyond rational arguments, author was particularly fond of shoe-horning everything into pet policies, which rather detracted from the experience.
June 30, 2016
The economics in this book is solid and the analysis of taxation is solid, however the problem is that it is told in a very boring and monotonous way.
June 4, 2019
A good insight into the fundamentals of why and how we are taxed
January 26, 2017
Brilliant book, although slightly technical when it comes to economics, and thus a bit on the heavy side for economics illiterates like me.
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