The Ethics Of Taxation: A Biblical Precis

By David W. Jones

[Associate Professor of Christian Ethics, Southeastern Baptist Theological Seminary, Wake Forest, North Carolina 27587]

As the story goes, while having dinner with two friends the French philosopher Voltaire suggested that for entertainment purposes each man ought to tell a tale about thieves. After each guest had shared a short story, Voltaire began his tale by saying, “Gentlemen, there was once a tax collector. . . . Good Lord, I’ve forgotten the rest of the story.”[1] While perhaps a fictional account, this narrative highlights a factual truth—that is, few people enjoy paying taxes. In fact, in the United States the payment of taxes is so generally disliked that the Internal Revenue Service estimates over 290 billion dollars in taxes went unpaid in 2005,[2] making tax fraud “probably the most widespread crime in the United States.”[3] Failure to pay taxes, however, is not a phenomenon that is limited to contemporary American culture. Indeed, a survey of history reveals that at nearly all times a portion of the general public, including many Christian citizens, have either refused or neglected to pay assessments levied by governing authorities. While rarely constituting a majority of the populace, from the inter-testamental sect of the Essenes,[4] to some within the early Christian church,[5] to a number of the Reformation-era Anabaptists,[6] to the 1960s tax-resistance movement,[7] throughout history it can be demonstrated that followers of God have occasionally and purposefully not paid their taxes.

That in the past some purportedly God-fearing people have questioned the legitimacy of paying taxes raises an important question for modern-day believers— that is, do Christians have a moral obligation to pay financial assessments imposed by governing authorities? The purpose of this brief study is to explore and to answer this question by examining the biblical record to see if Scripture contains any prima facie evidence that addresses the ethics of taxation.

The Old Testament And Taxation

The first record of governmental taxation in Scripture is at Gen. 41:36-49 where Joseph suggested to Pharaoh that he levy a 20 percent tax on all of Egypt during the anticipated seven years of plenty, a tax that Joseph later made a permanent part of the Egyptian government’s rule (cf. Gen. 47:26). While this tax was not instituted by the Lord, it nevertheless was a contributing factor to the means by which God delivered his people from the impending famine. Therefore, while this 20 percent levy cannot be said to have been authored by the Lord, it was at least tolerated and used by God in the lives of his followers. The 10 percent tax on the produce of the livestock (cf. 1 Sam. 8:15) and ground (cf. 1 Sam. 8:17; Amos 7:1) later assessed by Jewish monarchs likewise falls into this classification of taxation in God’s economy.

Apart from tribute money that was required of Israel by oppressor nations (cf. 2 Kings 15:19; 23:33, 35; Ezra 4:13; Neh. 5:4), or paid to Israel by the nations it oppressed (cf. 2 Chr. 9:14; 17:11), the only other significant formal governmental tax stipulated in the Old Testament was the tabernacle/temple tax. Practically speaking, this tax, which was instituted by the Lord through Moses at Exod. 30:11-16, existed in order to meet the everyday operating expenses of the Jewish place of worship. The tabernacle/temple tax was originally set at one-half of a shekel for every male over the age of twenty, roughly equivalent to one day’s wages, and seems to have been collected at this rate for the duration of the Jewish monarchy (cf. 2 Chr. 24:6-10). Interestingly though, when this tax was reinstated by Nehemiah after the Babylonian captivity, it was set at one-third of a shekel (cf. Neh. 10:32), perhaps on account of the peoples’ dire economic situation.

While not usually viewed as a formal governmental tax, a final, often-overlooked form of taxation required of all Jews in the Old Testament was the tithe. A survey of the Pentateuch reveals that there were in fact three separate mandatory tithes specified under the Mosaic Law.[8] The primary tithe was the Levitical tithe cited at Lev. 27:30-33; Num. 18:21-32; and Neh. 10:37-38. This tithe of all the “seed of the land or of the fruit of the tree” (Lev. 27:30) was to be presented annually to the Levites, the civil and spiritual leaders of Israel under the theocracy. The Old Testament Law specified that 10 percent of the Levitical tithe was to be given to the High Priest, and tithers were permitted to redeem their tithe at 120 percent of its value. The second tithe required under the Mosaic Law was the Festival Tithe mentioned in Deut. 12:11-12; 14:22-27. This tithe was to be consumed by tithers themselves at one or more of the national religious festivals held in Jerusalem that were designed to foster social, cultural, and spiritual life. A third tithe, oftentimes labeled the welfare tithe, is mandated in Deut. 14:28-29; 26:12. This tithe, assessed every third year, was to be used for the purpose of caring for “the stranger and the fatherless and the widow” (Deut. 14:29).[9] In sum, while not regarded by many today as a formal governmental tax, under Old Testament Law the tithe was akin to a tax in that it was mandatory, supported the civil government, fostered social and cultural life, and helped to care for the poor.[10]

Jesus And Taxation

Although the Gospels contain much information about Jesus’ dealings with tax collectors (e.g., Matt. 9:11; 11:19), there are only two accounts in Scripture where Jesus explicitly addressed the payment of taxes. These two occasions are recorded in Matt. 17:24-27 and Matt. 22:18-21 (par. Mark 12:14-17; Luke 23:2). A brief survey of these two pericopes reveals several reasons why Christians ought to pay levies assigned by governing authorities.

Matthew 17:24-27 is perhaps the most important account in the Gospels regarding the payment of taxes, for this is the only canonical narrative where it is recorded that Jesus actually paid taxes. This event yields a self-evident reason as to why Christians ought to pay taxes—that is, because Jesus did. This episode, however, is even more significant considering the circumstances surrounding the type of tax that Jesus paid. It is clear from Matthew’s use of the word “δίδραχμον [tribute]” that the tax Jesus paid was the one-half shekel tabernacle/temple tax prescribed in Exod. 30:11-16 for all Jews twenty years of age and older. In this narrative Jesus explained to Peter that since he was the Son of God, He was exempt from paying this tax (cf. Matt. 17:25-26). Nevertheless, Jesus arranged for the payment of the tax knowing that it would go into the coffers of those who were persecuting Him, as well as help foster a religious system that he had already labeled as corrupt. This was done, as Jesus said, “Lest we offend them [i.e., the rulers]” (Matt. 17:27). Another reason, therefore, to pay taxes is to avoid offending the governing authorities.

The second occasion on which Jesus addressed the payment of taxes is recorded in Matt. 22:18-21 (par. Mark 12:14-17; Luke 23:2). This pericope contains Jesus’ most often-quoted command regarding taxes, “Render therefore to Caesar the things that are Caesar’s, and to God the things that are God’s” (Matt. 22:21). Perhaps it would be permissible to leave this passage simply noting that the best reason for paying taxes is because Jesus commanded it; however, two observations can be made regarding Jesus’ statement that are beneficial to this brief study. First, it ought to be noted that in his reply to the Pharisees, Jesus used the strong Greek verb ἀποδίδωμι, which is translated in most English translations with the word “render.” By employing this term Jesus left no room for debate regarding his position on the payment of taxes. Second, note that Jesus did not equate the payment of taxes with endorsement of government policies or actions. This is significant given that this is a common reason given by many tax resisters for their refusal to pay taxes.[11] Jesus, however, did not liken the payment of taxes with the approval of governmental actions; rather he made a distinction between the things that are Caesar’s and the things that are God’s.

Paul And Taxation

Perhaps the best place in the Bible to gain insight into a Christian ethic of taxation is Paul’s discourse on submission to government authorities in Rom. 13:1-7, which is the only passage in which the apostle mentions taxation. Indeed, this section of Scripture is not only the most lengthy New Testament passage that explicitly deals with obedience to rulers, including taxation, but also as Ziesler notes, “It is even possible that payment of taxes is the main point of the whole of [Rom.] 13:1-7.”[12] While this claim is certainly debatable, it is clear that Paul does address the payment of taxes in Rom. 13:6-7. Therefore, these two verses are the focus of the study below.

Because Paul begins verse 6 with the prepositional phrase “διὰ τοῦτο γάρ [for because of this]” the interpreter is presented with a hermeneutical choice significant to this study. If the antecedent of this phrase is merely “τὴν συνείδησιν [conscience]” in verse 5, then, Paul is saying that Christians ought to pay taxes solely for the sake of one’s conscience.[13] However, on account of the presence of so many causal conjunctions in verses 1 through 5, it seems best to conclude with Godet that διὰ τοῦτο γάρ “does not refer specifically to the idea of verse 5, but to the whole preceding development from verse l.”[14] Therefore, Paul is saying that Christians ought to pay taxes not only for conscience’s sake but also because the institution of government has been established by God, and because of the potential wrath that the government rightfully possesses.

The reader is confronted with a second interpretive choice with consequences befitting this study by Paul’s use of the verb form “τελεῖτε [you pay]” in verse 6. The question is whether the apostle meant for this verb to be understood as an imperative or in the indicative mood. If one takes it as an imperative, as did the editors of the Jerusalem Bible, the Contemporary English Version, and the Phillips Translation,[15] then the apostle was commanding the Roman Christians to pay their taxes. On the other hand, if the term is in the indicative mood then there is no casuistic force behind Paul’s usage here. While the three aforementioned translations have interpreted τελεῖτε as an imperative, in light of the fact that the vast majority of translators have understood τελεῖτε to be in the indicative mood,[16] it seems best to agree with Yeagar that τελεῖτε “seems here only to be indicative.”[17] Interpreting τελεῖτε as an indicative, however, yields yet another reason for paying taxes—that is, Paul assumed that the Roman Christians were already paying their taxes.[18] Indeed, the payment of taxes is something that Christians should do without admonition. This is especially clear since, as Vincent has noted, the word τελεῖτε carries with it “the sense of the fulfillment of an obligation.”[19]

At the close of verse 6 Paul disclosed a further reason why Christians ought to pay their taxes when he wrote that Christians should pay tribute to governmental leaders “for they are God’s ministers” (Rom. 13:6). The term translated “ministers” in this verse is the Greek word λειτουργαί. Leon Morris wrote that “in the New Testament, with the possible exception of Phil 2:25, [λειτουργαί] is always used of the service to God.”[20] Likewise, another commentator noted, “It is doubtless [that]... leitourgos was used in the New Testament, and in the early church, to represent a religious servant.”[21] Indeed, Paul used the term in the New Testament to refer to angels (cf. Heb. 1:7,14), Christ (cf. Heb. 8:2), and even himself (cf. Rom. 15:16). Therefore, it seems that the apostle is saying that Christians ought to pay taxes because, whether they realize it or not, the governing authorities are ministers of God.

One final reason why Christians have a moral obligation to pay taxes can be seen in verse 7—that is, this verse is a command. Although it has been argued above that verse 6 contains an indicative statement, not an imperative, in verse seven Paul clearly commanded his readers to pay their taxes. It is interesting to note that in this verse, by using two different words for taxes, Paul left no room for misunderstanding the Christian’s duty. The two terms that Paul employed were “φόρον [tax]” and “τέλος [revenue]” As Morris noted, the word φόρον refers to a direct tax “a subject people paid to its conquerors,”[22] while the term τέλος, as Thayer explained, is “an indirect tax on goods,”[23] similar to a modern-day sales tax. Clearly, then, Christians are obligated to pay all taxes, both direct and indirect.

Conclusion

It is probable that Perkins was right when he wrote that the “New Testament passages dealing with taxation do not amount to a systematic ethic or philosophy of taxation.”[24] While this may be true, after a brief study of the Scripture it is possible to draw two general conclusions regarding taxation. First, Christians have a moral obligation to pay taxes. No less than ten reasons to support this claim were covered in this study. In summary, Christians ought to pay tribute to governing authorities because:

1. The institution of taxation has been accepted and used by God (cf. Gen. 41:36-49; 47:26).
2. Taxes were prescribed for God’s people under the Old Testament Law (cf. Exod. 30:11-16; Lev. 27:30-33; Num. 18:21-32; Deut. 12:10-19; 14:22-29; 26:12; 1 Sam. 8:15,17; 2 Chron. 24:6-10; Neh. 10:32, 37-38; Amos 7:1).
3. Jesus paid taxes (cf. Matt. 17:27).
4. Not paying taxes may offend the governing authorities (cf. Matt. 17:27).
5. Jesus commanded the payment of taxes (cf. Matt. 22:21).
6. One’s conscience should call for the payment of taxes (cf. Rom. 13:5).
7. Government has been established by God and divinely invested with the power to vent wrath against the tax resister (cf. Rom. 13:1-5).
8. Paul assumed that the early Christians would pay taxes (cf. Rom. 13:6a).
9. The governing authorities are God’s ministers (cf. Rom. 13:6b).
10. Paul commanded the payment of taxes (cf. Rom. 13:7).

Second, believers are to pay all of the levies imposed upon them, regardless of the tax rate or the morality of the government. As Douma wrote, “Even if the state were to impose an illegitimate tax burden strongly resembling theft, our calling continues to be to pay what we owe (Rom. 13:6-7).”[25] Neither the Old Testament record, nor Jesus, nor Paul left any room for tax resistance. Clearly, the payment of taxes is not an option; rather, it is an obligation for the Christian citizen.

Notes

1. Clifton Fadiman, ed., The Little Brown Book of Anecdotes (Boston: Little, Brown, and Co., 1985), 562.
2. Tom Herman, “Tax Report: IRS Estimates of Unpaid Taxes Appear to Be Low, Report Says,” Wall Street Journal (April 26, 2006), D2.
3. This according to John Mac Arthur, Romans 9-16, The Mac Arthur New Testament Commentary (Chicago: Moody, 1994), 229.
4. Historians record the fact that the Essenes refused to pay the one-half shekel temple tax prescribed under the Old Testament Law (Exod. 30:14-15). This was because “the Essence sectaries insisted that the Law only required a man to pay this tax to the temple once in a lifetime.” Pheme Perkins, “Taxes in the New Testament,” Journal of Religious Ethics 12 (Fall 1984): 185.
5. Ethicist Charles Mott wrote that one of the reasons that the Apostle Paul mentioned taxes in Rom. 13:6-7 was that in Rome “there were Christians who overemphasized and misused their freedom.... As a result, they sought to cast off all the duties of their roles in society.” Charles Stephen Mott, Biblical Ethics and Christian Social Change (New York: Oxford University Press, 1982), 148.
6. George Huntston Williams, The Radical Reformation, 3d ed. (Kirksville, MO: Sixteenth Century Journal, 1992), 142,155.
7. The tax resistance movement is an interesting study in and of itself. This movement, which began in an organized form in the 1960s and continues until the present time, is not solely a Christian movement; however, it appears to be most organized within Christian circles, particularly among certain clergy within the mainline denominations. Apparently this movement began in protest of the United States government involvement in Vietnam, and continues today to protest excessive military spending. Cf. Joy Hollyday, “Refusing to Pay,” Sojourners 20 (April 1991): 6; and Jeanie Wylie-Kellerman, “Rendering Unto Caesar: A Story of Tax Resistance,” Witness 75 (Mar 1992): 25-26.
8. Cf. Andreas Kostenberger with David Croteau, “‘Will a Man Rob God?’ (Malachi 3:8): A Study of Tithing in the Old and New Testaments,” Bulletin of Biblical Research 16.1 (2006); John MacArthur, Whose Money Is It Anyway? A Biblical Guide to Using God’s Wealth (Nashville: Word, 2000), 97-113.
9. One should note that not all scholars agree that there were indeed three separate tithes collected under the Old Testament Law. Most agree that there were at least two tithes—namely, the Levitical tithe and the festival tithe. The frequency and manner of collection of the triennial welfare tithe, however, is debated by some. Josephus writes that there were indeed three separate tithes (cf. Ant. 4.8.22), and the apocryphal Book of Tobit indicates the same (cf. Tob 1:7-9); however, the ancient historian Maimonides identifies the third and sixth years’ festival tithe as the triennial Welfare Tithe. Neither the Scriptures nor the historical record are clear on this point.
10. Interestingly while many moderns view the tithe as giving 10 percent of one’s income to one’s church, since there where likely three separate tithes in the Mosaic Law, the Jewish pattern of giving was 20 percent, 20 percent, 30 percent over a three year period. Assuming that no tithe was required in the Sabbath Year, this averaged out to 20 percent over a seven-year cycle.
11. For example, Wylie-Kellerman quotes a tax resister as saying that “the priorities of the government simply didn’t go along with what we thought the priorities were.” Wylie-Kellerman, “Rendering unto Caesar,” 25.
12. John Ziesler, Paul’s Letter to the Romans (Philadelphia: Trinity Press International, 1989), 314.
13. “According to translators Barclay M. Newman and Eugene A. Nida, this is the hermeneutical choice favored by most commentaries. Barclay M. Newman and Eugene A. Nida, Paul’s Letter to the Romans (New York: United Bible Societies, 1973), 247.
14. Fredric L. Godet, Commentary on Romans (Grand Rapids, MI: Kregel, 1977), 445.
15. The Jerusalem Bible renders Rom. 13:6a, “The reason why you must pay taxes”; The Contemporary English Version has, “You must also pay your taxes”; and Phillips’s translation reads, “It is right, too, for you to pay taxes.”
16. Newman and Nida noted that τελεῖτε “is taken by most commentators and translators as an indicative.” Newman and Nida, Paul’s Letter to the Romans, 247.
17. Randolph O. Yeagar, The Renaissance New Testament, vol. 12 (Gretna, LA: Pelican, 1983), 173.
18. That early Christians in general were paying their taxes seems to be a well-established fact. In a letter to Emperor Antonius Pius the church father Justin Martyr wrote, “Everywhere we [Christians], more readily than all men, endeavor to pay to those appointed by you the taxes both ordinary and extraordinary, as we have been taught by Jesus.” The First Apology of Justin, ed. Alexander Roberts and James Donaldson, vol. 1, The Anti-Nicene Fathers (Grand Rapids, MI: Eerdmans, 1973), 168.
19. This according to Greek scholar Marvin R. Vincent, Vincent’s Word Studies in the New Testament, vol. 3 (Peabody, MA: Hendrickson, n.d.), 164.
20. Leon Morris, The Epistle of the Romans (Grand Rapids, MI: Eerdmans, 1988), 466.
21. MacArthur, Romans 9-16, 234.
22. Morris, The Epistle of the Romans, 466. Thayer, too, believes that the tax included “houses, lands, and persons.” Joseph H. Thayer, The New Thayer’s Greek-English Lexicon (Peabody, MA: Hendrickson, 1981), 657.
23. Thayer, The New Thayer’s Greek-English Lexicon, 620.
24. Perkins, “Taxes in the New Testament,” 182.
25. J. Douma, The Ten Commandments: Manual for the Christian Life, trans. Nelson D. Kloosterman (Phillipsburg, NJ: P & R, 1996), 309.