JESUS AND THE ETHICS OF TAXATION

“Give therefore to the emperor the things that are the emperor’s, and to God the things that are God’s.” (Matthew 22:21b)
“Pay to all their dues, taxes to whom taxes are due.” (Romans 13:7)

Money matters and taxation were issues sensitive and irritating to the Jewish people during the time of Jesus, and even up to now, and so the enemies consulted Him not so much for His wisdom but more to secretly entrap Him. Though He knew the malicious intent of questions raised before Him, which He usually explained through parables about half involving money in some way, this time He gave a direct answer with the coin example of a Roman denarius (daily wage of labor) with the face of Caesar (Emperor) Augustus (27 BC - 14 AD). “Give to Caesar what is Caesar’s, and to God what is God’s,” was His reply. Amazed at His answer, they left Him with no further questions.

The history of Israel was replete with monetary issues since the time God commanded Moses to tell the people to pay tithes (10%) from the first produce of their land – grain, wine, oil, and the firstlings of their herd and flock (Dt. 14:22-28). A religious tax to draw them away from pagan practices, it was also designed to support the life of the Levitical priests who had no land and financial inheritance among the 12 tribes of Israel. If distance prevented them in transporting their goods, they were required to convert these into monetary value for the upkeep of the priests and charity for the poor. This religious tax was wholeheartedly accepted by the Israelites; but not so with the Roman State taxes.

Even before the Jewish nation was under the rule of the Roman Empire, the people already experienced the most extensive tax system starting with the reign of King David. He imposed a “royal tax” to maintain the monarchy by bringing the tribes together into centralized administration and supporting his building projects. This was extended by his son, King Solomon, who further added a Temple tax of half shekel (shekel worth four denarii) for the construction of the Temple and the royal buildings around the palace complex including the Hall of Throne. These taxes also paid for the court’s monthly management of the 12 tax districts, further augmented by the annual land tax and the tax levied on the surrounding vassal states. 

When Israel came under the Roman Empire (27 BC – 476 AD), the taxes imposed included the “war tax” for war expenses, the “imperial tax” for the control of conquered provinces, and taxes for the protection of the people. A “stipendium tax” paid for the soldiers’ wages and their retirement benefits; and taxes also levied to pay for the services of the “publicani” (tax collectors) and money lenders who advanced funds to state contractors for the building and army supplies. Involved in illegal activities, these two groups cheated and overpriced their dealings with 12%-48% interest earnings, which the Israelites totally abhorred. The most brilliant tax strategy was the census to determine the size of the population and to maintain the wealth of the empire. (Before Jesus’ birth, Joseph, descendant of David, and Mary went to Bethlehem to be enrolled in a census at his ancestors’ birthplace and to pay the required state taxes.) This census became the benchmark for future tax collections, and which provided for assistance to the poor to avoid social unrest. To appease the people, war booties were distributed equally to the taxpayers; but these were not always guaranteed with the illegal work of the “publicani” (publicans or tax collectors).

The financial implications weighed heavily on the Israelites whose meager agricultural incomes were also subjected to the “market tax,” so that they resorted to cheating in their weighing scales and other means. To make matters worse, only half of the family’s income was disposable for clothing (30%) and food (20%). Personal charity (10%) and the remainder (40%) were taxed by the State and the religious establishments, distributed thus: Religious festivals (10%), Religious tithes plus Temple tax (11%), Roman state tax (4%), Illegal tax and bribes (5%), and other taxes (10%) including payments for sacrificial animals. With these enormous expenses, it was understandable why the people despised the two authorities. Also, the Temple priests cooperated with the money changers and lenders, and were the recipients of the sacrificial animals offered by the “sinners”. Between the two, however, they were more amenable to the religious authorities as they deemed the tax charges were “commanded” by God and the responsibility of caring for the spiritually weak rested on the strong, a feeling ingrained with the spirit of unlimited forgiveness arising from the unlimited forgiveness of God.

So why was Jesus neutral to any group in the payment of taxes? Both groups were responsible for the welfare of the people and whose authority emanated from God. In Paul’s Letter to the Romans (13:7ff), he says, “The authorities are God’s servants … Pay to all what is due to them – taxes to whom taxes are due, revenue to whom revenue is due, respect to whom respect is due, honor to whom honor is due.” Paul explained that there was no authority except from God: “Therefore whoever resists authority resists what God has appointed, and those who insist will incur judgement. For rulers are not a terror to good conduct, but to bad. Do you wish not to have fear of the authority? Then do what is good, and you will receive its approval; for it is God’s servant for your good… For the same reason you also pay taxes for the authorities are God’s servants.”

In Peter’s Epistle (1 Peter 2:13-17), he summoned the people to pay respect to the government: “For the Lord’s sake accept the authority of every human institution, whether of the emperor as supreme, or of governors, as sent by Him to punish those who do wrong and to praise those who do right. For it is God’s will that by doing right you should silence the ignorance of the foolish.”

St. Thomas Aquinas advised to submit to constituted authority as its source of legitimacy comes from God:”a just human law that renders to every human what is due to him or her.” With governing or state authority comes the power to tax based on three principles, according to RCC Father Dennis J. Yu: Commutative with a just cause for the common good, legitimate with the sanction of the people, and distributive with due proportion constitutionally guaranteed. Taxation is levied for the care of the needy and general well-being: Common good for protection and the social condition to reach abundance and the fullness of life (John 10:10b); social welfare to care for the elderly, the widows and orphans, and the poor and disenfranchised (Micah 6:8); and wealth redistribution to attain equality and social justice based on peace. Leviticus 25 called for the observance of the Jubilee Year when the land shall be redeemed and things restored to order as envisioned by God.

During Jesus’ time, the Jewish religious authorities continued to levy the Temple tax (one-half shekel) for the maintenance of the Temple and the tithes for the sustenance of the priests (Aaronic and Levitical). The money-changers converted foreign money denominations into the acceptable Tyre coins (valued for their metal content) to purchase sacrificial animals and collected the Temple tax in behalf of the priests; while for the emperor, the tax collectors (publicans) and money lenders did their jobs but dishonestly and illegally. These horrendous activities performed on Holy Ground, inside the Temple courtyard in collaboration with the priests’ enjoying commissions, caused the ire of Jesus who overturned their tables for “they turned His Father’s House into a den of thieves.”

As Jesus was the absolute interpreter of the taxation law, no one dared question His opinion whether people should pay taxes or not, and to whom. The institutional framework was allowed then, and now in its contemporary setting, to provide for the common good and full development of people whether through State intervention (taxes) or the services of the Church (tithes). The fiscal responsibility of management, transparency and accountability is the contentious issue that will be submitted for evaluation in God’s own time; as well as the obligation on the part of the beneficiaries to shoulder their due share of the burden.

In the contemporary Philippine setting, the government levies several taxes: Payroll taxes (personal income), Corporate taxes (corporate income), Value-added taxes (12% on purchased goods), “Sin” taxes on cigarettes and liquors (discouraging consumption due to ill-health effects), toll taxes on roads/highways (financing infrastructures), Social Security taxes (pension plans), etc. Aimed to generate funds for the government coffers for the common good, these are imposed based on the “ability-to-pay principle,” i.e., those who have greater income capability should pay more. However, not all taxes are progressive in nature as some have regressive effects such as the Value-added Taxes. However, the Filipino seniors receive one of the most beneficial packages in the world; twice enjoying through the exemption of the 12% VAT and senior discount of 20%, totalling 32%; with non-monetary or in-kind benefits added.

Like any human institution, the Philippine taxation is far from perfect in its structure and collection system, nevertheless, the people are required to pay their taxes according to the mandates of the law and the Bible. Non-payment for various reasons, including government corruption of funds, will not justify this inaction as everyone benefits in one way or another from State services. Resolving the malversation of funds issue cannot be ignored, however, this problem is best settled through the proper agencies tasked for this purpose. (There are more to these issues that cannot be discussed here now.) But as God commanded, the State has the responsibility of responding to the social welfare needs of the people especially at this critical time of the Covid-19 pandemic.

The Church, likewise, is authorized to collect through tithes and/or pledges to generate income for its vision/mission activities and evangelism to pursue God’s Will on earth as a foretaste of His Kingdom. As a commitment to the Lord, albeit voluntary, a tithe or pledge should be honored regardless of church attendance during this pandemic. However, exemptions are in order due to the hardships experienced by some members. In this critical time, the church-goers are exhorted to extend their helping hands to the members and non-members alike needing financial or in-kind assistance. Nowhere in this abnormal time is the diaconal spirit more fully manifested by the Christians faithful to the Lord to provide to the “least of their brethren”. Nowhere in this most opportune time, despite its unusual lockdown situation, is humanity enjoined to reach out across the seas using all available resources from the State and Church coffers to be utilized to combat a war against a common, invisible enemy. Nowhere in its most fitting time is the evidence of human institutions (physical and spiritual), despite its frailties, cooperating side-by-side through the guidance of an omnipotent Hand closely directing to unite His people; showing the absolute goodness of the unbounded love of God in spite of their doubts and insecurities.