ABSTRACT
Arguments rage about the welfare state – who gets what, to what effect, and at whose cost? But there is still little attention given to an alternative, expensive and largely hidden ‘tax welfare state’. This also brings considerable benefits to many people, reinforcing their efforts to achieve social and economic security, encouraging and supporting particular activities such as saving for retirement, bringing up children or buying a home while leaving others, generally on lower incomes, with higher taxes and fewer services.
