Tag Archives: Fairness

Taxes and the Common Good

commongood-signpostLiving in the Spirit
November 8, 2015

Scripture Reading: Mark 12:38-44

He sat down opposite the treasury, and watched the crowd putting money into the treasury. Many rich people put in large sums. A poor widow came and put in two small copper coins, which are worth a penny. Then he called his disciples and said to them, ‘Truly I tell you, this poor widow has put in more than all those who are contributing to the treasury. For all of them have contributed out of their abundance; but she out of her poverty has put in everything she had, all she had to live on.’ –Mark 12:41-44

Regressive taxation is still in vogue today. The tithe as defined by the Hebrews was a flat tax of 10% of income. Flat taxes are in general regressive taxes. For a poor person who does not have enough money to pay the rent or buy food, 10% is insurmountable. For a wealthy person 10% of their income would most likely exceed the amount required to meet basic needs. If we look deeper into the history of the Israelites, we will see that they also made allowances for income based on need. The offerings required for various occasions might require a perfect lamb for a richer family, two doves for poorer one. This is what is called a progressive tax. Our income tax is a progressive tax. Sales taxes, for example, are regressive taxes.

Our scripture today is an object lesson presented to his disciples. It leaves them to decide the justice in the system. It leaves us to decide the justice in our system, too. We would most likely say that giving to the church today is not a tax, it is a matter of choice and that would be true in our country where church and state are separated, but that was not the case when the tithe was created. Both types of taxations are probably needed depending on the situation. Our federal gas tax is a flat tax designed to support the maintenance and development of highways and bridges and that may be appropriate. Social Security taxes are flat taxes with reimbursement based on the amount paid with a basic payment that is stable for all. Thus It is a combination of both a flat tax up to a maximum level then reducing the amount paid by people with higher incomes becoming a progressive tax benefiting the wealthy. The payout distribution is a somewhat more progressive system.

We need enough funding to meet the common good. Defining how we do that and what is the Common Good is the challenge for all citizens. We would do well to include today’s object lesson in our thinking of what type tax system we need to meet what we believe to be the Common Good.

Prayer: Lord, we asked your guidance in our decisions regarding what is the Common Good and how shall we pay for it. Amen.

All scriptures are quoted from the New Revised Standard Version Bible: Anglicized 
Edition, copyright 1989, 1995, Division of Christian Education of the National Council 
of Churches of Christ in the United States of American. Used by permission. All rights 
reserved.