Paying Taxes

I recently received a rather humorous email forward from a co-worker on the structure of the current U.S. tax code. The gist is that the top 20% of wage earners (the rich) pay a huge (like 80%) portion of the income taxes paid each year. This is mostly true, though there are exceptions where wealthy people find ways to totally avoid paying taxes (which is generally illegal).

As someone who has existed in the middle income ranges all my life I can see both sides of the argument for and against this type of tax code (which is considered progressive, taking a higher percentage of your income as your income level goes up). In one respect those who make vast sums can afford to pay more in taxes and still enjoy a comfortable life. At the same time, why should those who have done well in their chosen field be forced to bear the bulk of the tax burden - essentially penalizing them for doing well. There's no easy answer. To pass the burden to lower income brackets would be fairly devastating to those people. To get the government to actually cut their budget (remember Congress generally defines a cut as any reduction in the normal yearly rate of increase, so if a particular department normally gets a 5% hike each year they'll call it a cut if they only get 3% in a given year) is probably out of the question. But if I were in the position of being entrusted with a very high level of income (from a stewardship standpoint that is a huge responsibility) I wouldn't particularly want to give up half or more in income taxes right off the top. I don't really think Washington or Jeff City know how to use the resources God has entrusted to me better than I do.

To avoid this becoming an overtly political post, I'll offer just some scriptural thoughts on the topic. The Gospels record Jesus on the subject of paying taxes in all three synoptics. The accounts in Mark and Luke are very similar, the one in Matthew differs slightly, but could well have been the same incident remembered a little differently by Matthew (he was a tax collector before he became a Disciple, so he was probably paying attention on this one).

At any rate, Jesus seems to have little to say about who should pay the most - though I think there are teachings on other things (see the incident at the temple where he talks about the rich and poor giving offerings) that could support certain concepts of how tax code should be written (but I'm going to leave those out of this post) - and focus on His comments on the appropriateness of His followers paying their taxes.

In Mark 12:13-17 and Luke 20:19-26 we read nearly identical accounts of Jesus being questioned about whether people should pay taxes - specifically to Caesar. Now there were cultural and contextual issues at play here because of the arrangement with the Romans ruling the area the Isrealites lived in, but I don't think those change the crux of what Jesus' response was. Jesus told those who questioned him that they should "render to Caesar the things that are Caesar's and to God the things that are God's." In effect he is is saying, yes, if the government you live under requires you to pay taxes it is your responsibility to do so. There are other instances in scripture where believers are told to submit to the authorities in place over them, so this is not a stand alone concept.

I think the bottom line that Jesus is getting at here is that regardless of whether the current tax code is fair, it is our responsibility to pay what we owe. Now I don't believe that means we need to pay more than we owe or that we should not take advantage of legitimate deductions and credits the code allows for. I also don't think He is saying we shouldn't try to change the code through legitimate means (if we believe the code is unfair). What he is saying is that tax evasion is not only wrong in a civil sense, but also spiritually. While I find it painful to watch thousands taken from my checks each year, as a citizen of this country and in obedience to Christ I will pay my taxes. Now if the government decides to lower my tax burden for some reason I will certainly rejoice and praise God for that blessing.