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Taxation: MPs and Judges have it wrong |
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Written by Capt. Collins Wanderi Munyiri
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Thursday, 13 November 2008 |
Taxation is premised on the exercise of sovereign legislative authority. Elected representatives lay down the general policy and legal framework for taxation in all democratic societies in line with the celebrated maxim of “no taxation without representation.”
"In this world nothing can be said to be certain, except death and taxes." -Benjamin Franklin, 1789.
Parliament is supposed to be the embodiment of the sovereign will of the people and the personification of their collective legislative wisdom. Whereas there is a general consensus amongst ordinary people that everybody, including Members of Parliament and other Constitutional office holders should pay tax, our MPs and Judges of the High Court think otherwise.
MPs have chosen to arm-twist the Minister of Finance into dropping proposals to tax their hefty salaries and allowances while Judges have sought presidential intervention to prevent the taxman from “pinching” their purses. These actions by MPs and Justices are contradictory to the collective desire of the citizenry and incompatible with modern theories on public finance and tax revenue administration.
Taxation is premised on the exercise of sovereign legislative authority. Elected representatives lay down the general policy and legal framework for taxation in all democratic societies in line with the celebrated maxim of “no taxation without representation.” They also provide a general guide on the tariff rates to be charged against each tax head.
Judges interpret the law and resolve disputes that arise between the citizens and government over the imposition of taxes, duties, levies or the grant of subsidies. Members of Parliament and Judges should therefore lead the way in paying income tax if they expect ordinary citizens to voluntarily comply with the law.
Paying taxes is the highest form of corporate social responsibility for any citizen; corporate or otherwise. Taxes are levied for the common good of the society. Since time immemorial, nation states have levied and collected taxes to finance public expenditure and provide services such as security, education, health and infrastructure. Modern states still use Oliver Wendell’s old adage that “taxation is the cost of civilization” to justify personal income and corporate tax.
Some pundits have speciously argued that the MPs’ action amounts to Parliamentary dictatorship. This is logically absurd since our MPs were elected through a democratic process. The actions by MPs and Judges amount to gross abuse of legislative and judicial privilege respectively. MPs and Judges are sending a message that they cannot be trusted vanguards of our political sovereignty, economic freedom, equality and justice.
They are providing ammunition to tax evaders who are likely to rationalize tax fraud by citing the examples set by MPs and Judges. Reduced voluntary compliance with taxation laws will ultimately affect the government’s ability to finance its obligations, lead to domestic borrowing and send interest rates soaring. This will in turn diminish the borrowing power of ordinary people and businesses resulting in reduced capital investments and meager economic growth.
Uniform application of taxation laws is intended to spread wealth and create a more just and equitable society. Members of the 10th Parliament and Judges are however telling Kenyans that it is okay for 300 individuals to live in abundant opulence sustained by already overburdened taxpayers, and while the majority of the citizenry wallow in abject poverty. Their actions demonstrate a collective determination to preserve and entrench a politico-economic system that promotes social inequality and injustice. This is immoral and unacceptable in a civilized society.
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Capt. Collins Wanderi Munyiri |
| About the author: |
| Captain (Rtd) Collins Wanderi is a Nairobi Advocate, Certified Public Secretary, Certified Fraud Examiner, Commissioner for Oaths, & Notary Public. He writes regularly on Kenyan affairs.
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Last Updated ( Monday, 17 November 2008 )
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Please correct me if I’m wrong but I think as Kenyans, our hands are kind of tied because of the current constitution. The answer to all this, of course, is a constitution change and having independent bodies making crucial decisions about legislative processes and compensation for legislative and judicial members. Parliamentarians are not approaching a constitution change with the haste it deserves because right now it is working in their favor.
It is absurd that in a country where majority of the citizens live on less than a dollar a day, the legislators are among the best paid IN THE WORLD – AND TAX FREE AT THAT. Kenyans are mad with every waking moment because those we have trusted with our votes are stealing from us through corruption and passing bills that do not serve us any good.
But WE have the POWER and it has been proven, albeit in a violent way. The problem is that we, the middle class, sit at home and watch on TV as the lower class are being clobbered out there fighting for the rights of ALL Kenyans. If only the middle class would join in the struggle. Can you imagine the change our country would experience if EVERYBODY joined in the struggle? Something would definitely happen. And it doesn’t have to be violent. The government and politicians - I don't care what party they belong to - instigate violence because they are “protecting their interests”. Did they really have to tear gas the IDPs who just want what is rightfully theirs? Is it such a bad thing that all they want is access to basic needs – clothes, food and most importantly shelter?
Community organization is the key...Even President-Elect Obama started as a community organizer and it is that experience that he used in campaigning for the presidency. Where are the community organizers in the house? Let’s get together and get this ball rolling. And then Kenyans need to start voting for policies and not individuals. I know it can't happen overnight but at least within the next one or maybe two election cycles, I believe Kenyans will be better informed and we should start seeing people vote for policies that would improve their lives and put them on the road to better systems that work for ALL.