Taxation has played a significant role in shaping societies, economies and political landscapes throughout history, from ancient Egypt to the present day.

Tax resistance has also contributed to shaping history; sparking revolutions and prompting significant social and political change.

The following, the first of Conscientious Currency’s articles on taxation, is a brief history of both.

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It’s All a Bit Taxing: A First Foray Into Tax and Resistance To It

By Conscientious Currency

Tax resistance has a rich and varied history, spanning different cultures and epochs. It continues to be used as a means of protest, conscientious objection, and nonviolent resistance worldwide, and has shaped history, sparked revolutions and prompted significant social and political change.

I have listed some notable examples of tax resistance below to get us started, (there are a great many more than I have listed), but in advance of you reading them, I should warn you that you may need several gin and tonics to help see you through the first few of these Substack posts, because it is going to be necessary, (and a little painful), to look into the history of taxation in the UK and around the world, how tax revenue is allocated in our country, and in later posts to delve into the legislation in the UK governing taxation – we have to know our enemy you see.

Notable Examples of Tax Resistance

1. In 578 AD, residents of Limoges rioted against tax collectors, leading to harsh government responses.
2. The Peace and Truce of God movement saw Christian clergy resisting taxes on church property imposed by warlords.
3. In 1041, residents of Worcester rebelled against the Danegeld collected by King Harthacnut, resulting in violence.
4. In 1197, residents of Constantinople refused to pay a tax imposed by Alexios III Angelos, forcing him to collect the sum by stripping ornaments from old tombs.
5. A war tax instituted by the Florentine seigniory led to mass tax resistance, ultimately forcing the government to abandon the tax
6. Tax resistance played a crucial role in the American Revolution, with colonists protesting against British taxation without representation
7. The poll tax riots in the UK were a significant moment of civil unrest during the late 1980s and early 1990s. The demonstrations were successful in drawing attention to the unpopularity of the poll tax. Margaret Thatcher resigned in November 1990, and her departure was influenced (though not solely caused) by the London poll tax revolt

A Very Brief History of Taxation

Taxation has a long history that spans civilizations and millennia. It has shaped societies, economies and political landscapes throughout history, from ancient Egypt to the present day. Below is a very brief overview of taxation around the world, and its historical roots.

Ancient Roots:

• Around 5,000 years ago, in ancient Egypt, even before the use of coined currency, the Pharaoh collected a 20 per cent tax on all grain harvests.
• Julius Caesar implemented the first sales tax during the Roman Empire

Early Administrative Considerations:

• Import duties on imported products were among the earliest taxes due to their ease of collection.
• Turnover taxes (levied on gross sales) were common before the invention of complex Value-Added Tax (VAT).
• Head (poll) taxes and land taxes were the first direct levies.
• Tax collection was initially handled by middlemen or “tax farmers” but later delegated to civil servants

Roman Taxation:

• In ancient Rome, taxes included consumption taxes, customs duties, and certain “direct” taxes.
• The tributum, a head tax, was later extended to real estate holdings.
• Rome had an early inheritance tax (5–10 per cent) with exemptions for close relatives of the deceased.

Middle Ages and Obligatory Services:

• In the Middle Ages, ancient taxes gave way to obligatory services and a system of “aids.”
• Transit duties (taxes on goods passing through a country) and market fees were common

Modern Taxation:

• From the late 18th century to today, modern taxation evolved globally – so a growth over the last 250 years, coincidentally during the same time period as America’s independence.
• Taxation impacts nations, economies and daily life, shaping history and sparking revolutions

Looking Closer to Home – Income Tax

The first permanent British income taxwas introduced in 1799 by William Pitt the Younger. It served to fund weapons and equipment during the Napoleonic Wars. The introduction of the tax faced significant opposition and initially it was highly unpopular and widely evaded, especially among merchants and manufacturers. However, as time passed, the tax came to be accepted as “a vital price for winning the war against Napoleon,” and many started to see payment of it as their “patriotic duty.” As the war continued, the need for revenue became more urgent. The government emphasised the importance of funding the military and maintaining national security by public awareness campaigns, impressing upon citizens the necessity for income tax for defence and stability. One can almost smell the fear propaganda from here.

The Income Tax Act of 1799 provided the legal basis for implementation of income tax, outlining rates and procedures, and historical records reveal the gradual acceptance of income tax as “a vital tool for national survival during a time of conflict.” Those last 11 words rather beg the question as to why we are still paying the wretched thing. Are we to believe we are in perpetual state of conflict and paying it for national survival? I ask as I feel quite sure that everyone reading this maiden Substack post of mine will be well aware that the intention was for income tax in Britain to be a temporary measure. However, the increasing cost of “government commitments,” made income tax a fixture and it has remained ever since the Act of 1799, thereby no longer considered a temporary arrangement.

So, what were those government commitments that caused the temporary tax to become a permanent feature? Well, largely they were a lot of wars. Here are a few to consider:

1. Second Anglo-Maratha War (1802–1805): Britain clashed with the Maratha Empire in India.
2. Napoleonic Wars (1802–1813): A series of conflicts involving Britain, France and their allies.
3. War of 1812 (1812–1815): Fought between Britain and the United States and key events included the burning of Washington, D.C., and the Battle of New Orleans
4. Hundred Days War (1815): The return of Napoleon Bonaparte from exile led to his final defeat at the Battle of Waterloo.

5. Anglo-Nepalese War (1813–1816): Britain clashed with the Kingdom of Nepal in the Indian subcontinent.
6. The Crimean War (October 1853 to February 1856): Fought between the Russian Empire and an alliance of the Ottoman Empire, France, the United Kingdom and Sardinia-Piedmont. The conflict was triggered by a dispute over the rights of Christian minorities in Palestine

When we consider the above, it is not hard to raise the argument that taxation and war have a deep and intrinsic connection. Governments need resources to wage wars, including financing armies, weapons, logistics and infrastructure. Tax revenue provides a significant portion of this funding and during times of conflict, governments often increase taxes or introduce new ones to cover war-related expenses. With this in mind, it feels pertinent to ask the perfectly reasonable question “is war waged to (in part) create further taxation”? If the answer is yes, we then need to ask who profits from this arrangement. We do not have to look far to know that it is those involved in supplying the war machine, but more on that another time. For now, below is a summary of some key points and statistics on the United Kingdom’s military/defence spending over past years:

1. Recent Trends

In 2022, the UK allocated £50.3 billion for its defence budget, representing 2.23% of its GDP.

In 2021, the defence budget was £49.5 billion, marking a 15.72% increase from the previous year.

In 2020, it stood at £42.8 billion, reflecting a 3.12% increase from 2019.

2. Historical Context

During World War II, the UK’s defence budget reached a peak of approximately £86 billion (in real terms) in 1944.

In the 1990s, the UK spent about 4.1% of its GDP on defence, witnessing a rise after a period of relative stability.

3. Current Figures

In the most recently completed financial year (2023/24), the UK’s defence budget was £54.2 billion

Projections indicate an increase to £57.1 billion in 2024/25.

Note: The above figures include both current and capital expenditures related to armed forces, peacekeeping and defence projects.

To put the above into context, let’s delve into official government figures for at home funding for law enforcement and public safety. You likely already know that the Home Office is responsible for law enforcement, immigration and national security. In the financial year 2022-23, the Home Office’s budget was approximately £17.9 billion, around 65% less than defence spending in 2022 – a period when we were not even at war (officially).

The Home Office budget supports police forces, counter-terrorism efforts, border control and crime prevention, and its funding is distributed across various departments such as the Ministry of Justice, who manage the legal system, prisons and probation services. With such scant resources when compared to non-war footing defence spending, it should come as no surprise to anyone that our prisons are now out of room, our criminal justice system is in chaos, and our police force do little to prevent crime.

Whilst the allocation of tax revenue may sometimes be a complex matter, it is quite plain to see that us tax paying citizens really do need to hold our government accountable and ensure that tax revenue is used efficiently and effectively – and mainly at home! In days gone by I would have said that us plebeians could influence tax allocation decisions through advocacy, petitions, letters and public campaigns to raise awareness and pressure policymakers. Today I feel very disenfranchised with such processes, simply because our government does not listen to us about anything. It is clear why, (to all but the blind) – they are under external influence from unelected supranational bodies.

And so it is that I find myself stumbling into tax resistance to try and take a stand and make a positive change. I hope more people will join me in stumbling around with this. Who knows, we may achieve something. Certainly, once we have further explored UK tax revenues, more about where tax revenue is allocated, (hint the BOE is involved), and just how much unnecessary tax people pay, we may even start a tax revolution. Peaceful of course.

About the Author

Conscientious Currency is a pseudonym for Clare Wills Harrison, a UK former succession lawyer with 25 years of experience.  She publishes articles on a Substack page primarily focussing on the armoury of non-compliance measures and other areas of taxation.  You can subscribe to and follow her Substack HERE.

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