Taxes, Economics, and the Gospels

There has been intense debate about the financial and long-term economic realities of the new tax plans that were recently passed by U.S. House and Senate. However, it is also important to analyze the ethical and moral implications of this tax plan. Many faith traditions speak about the issues of money, poverty, and wealth. However, since we are living in a country where the majority of the nation professes faith in Christianity, it is important to see how the Christian faith, particular the Gospels, relates to these issues.

Granted, the social situation we are in currently is quite different from the Jews in the first century who were living under Roman oppression. We live in a democratic republic and have more of a say about how our money is spent. Though the governmental situation is different today, the implications of Jesus’ teachings about money have strong relevance to the current debates about taxes, poverty, and inequality. Understanding these implications is vital since we can play a central role in shaping our national policy.

In the Gospel of Luke, Jesus states explicitly that he came to preach good news to the poor. He also makes the extraordinary claims that the poor and meek are blessed. This would have contrasted greatly with the values of many in his day just like it contrasts with the values of our consumerist society. Jesus seemed to find a way to continuously upend the societal values about wealth and poverty. For Jesus, wealth was not a sign that you were being rewarded by God, and poverty was not a sign that you were undeserving. Much of the extreme wealth and devastating poverty was due to greed and oppression.

In the teaching of Lazarus and the Rich man, Jesus speaks strongly to the evil of inequality and lack of care for the poor. He let his followers know that the last would be first and the first would be last. He stated unequivocally that it was difficult for the rich to enter the kingdom of God. In the end, one of the acts that lead to Jesus is crucifixion was driving out the moneychangers in the temple who were exploiting the poor and the foreigners. His stance towards the wealth, power, and money caused him to have many enemies, just like a similar stance would have today.

While Jesus did not specifically talk about the tax policies that a democratic nation state should take, we should reflect on how the values he taught relate to this issue. The current tax plan largely enriches those who already have great wealth. This is at a time when economic equality is at the highest levels since the 1920s. The plan also cuts certain deductions and credits which could hurt middle and working-class families. A new Congressional Budget Office report showed that most in the middle and lower classes will be paying more in the long run. Perhaps most insidious, this bill will add greatly to the national deficit, which the poor will most likely feel the brunt of in the future. It will only be a matter of time before politicians proclaim that we have to cut social programs to deal with the larger debt that these tax cuts will create.

We do not necessarily need to over-spiritualize every individual tax deduction or tax credit. I understand there are aspects of the tax system which could use reform and there is a level of nuance in how we should conduct our tax policy. However, we need to understand that there are strong moral and spiritual implications of our economic decisions. We should consider if our economic policies are living up to the idea of good news for the poor or whether it is bad news to the poor and great news to those who already have more than enough. Unfortunately, it is current form, the tax plan seems like the latter. Perhaps we should go back to the basics. Let’s learn to love our neighbor as ourselves and realize the timeless truth that is better to give than to receive. Somehow, we have lost those truths along the way.