One of our newest and youngest Alchemists Sam Evans takes one of the more controversial topics in this series of 40 Minute Mentor head on with his aversion to the status quo. Is giving back to society about more than money or…
Should The Wealthy Pay More Tax?
This question has divided conversation for many many years, however as we approach another recession the cost of living crisis begins to pinch, this question has raised its head over the parapets once again.
With just 1% of people in the UK controlling over 50% of the wealth it’s clear that there are systemic challenges that mean the distribution of funds is one sided, however this isn’t to say that for the most part, the entrepreneurs in this group haven’t earned every penny of their fortunes. After listening to James Mitra’s 40 minute mentor episode with guest Graham Hobson (Founder of photobox), Graham said Entrepreneurs ‘see the world & think of ways it could be better’. Some might say this is the very spirit of entrepreneurship and so with that in mind, supporting the UK economy through national and even global crises such as COVID-19 & the cost of living crisis would be at the top of many of their agendas.
Is paying more tax than the average household enough though? With government led schemes such as Entrepreneurs Relief (HS275) meaning they only have to pay 10% tax, the argument could be made that paying more tax would certainly help; but aside from the blunt instrument of taxation, there are much more beneficial ways to support the overall society in which we’re all a part of. In post-covid Britain, we’re seeing many companies adopt and deliver social value policies to support causes and communities with resources other than money.
Graham briefly mentions B Corp businesses, these are companies that have its people, customers and the world as a whole acting as equal shareholders, thereby affecting the overall company governance of making a profit to just pay shareholders. This more dynamic way of running a business means that everyone from the staff to your customers and C-suite all belong to a culture of doing what is right for each other. As Graham states in the episode ‘society makes entrepreneurship possible’ through developed infrastructure and overall work ethic.
As mentioned in the episode, groups such as the Millionaires For Humanity & Patriotic Millionaires UK understand and advocate for a more progressive taxation system that has a small impact on the top 10% but a large one on the remaining 90%. Something to think about…
Sam raises some excellent points on a very divisive topic. It’s more than simply money. Employers who don’t have a CSR (Corporate Social Responsibility), social value or philanthropic mindset are resulting in a poor perception of the employer brand. The thoughts provoked in this episode of 40 minute mentor show that social value and CSR are essential for any business who wants to give back and improve their employer brand. It’s not just about donating money, but about having a plan and purpose for social value and CSR. Giving back shouldn’t be something that is done begrudgingly, but something that is done with thoughtfulness, intention and excitement. When done right, social value and CSR can result in an improved employer brand that attracts top talent.
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Photo by Tim Marshall on Unsplash
