Taxes, An Integral Part of Life

From the days of antiquity, contemporary times predestined future, taxes – in form or another – was, is and will always be a fact of life. Life is not complete without taxes. In Biblical times, kingdoms paid tribute i.e. tax levy to conquerors who overcame them. Luke’s Gospel tells how Jesus commanded people to pay taxes to the state and Give God what belongs to God (Luke 20:22, Rom. 13:6).

Taxes are usually collected through payroll withholding – a deducted amount automatically extracted from one’s salary. It is withheld because people really do not want to pay taxes. Collected taxes by federal, state and local governments is used to offset the cost of providing health care, education, national defense, infrastructure construction and maintenance, social services and other essential services for the benefit of all citizens.

The American Tax System is a progressive form of taxation. The more one makes, the more one has to pay in taxes. Consider that John Doe earns 50,000 and Jane Doe makes 500,000 annually. A tax rate of 10% levied to both of them results in the following computation:

Tax Payer Tax Computation in Gross Income Net Income

John Doe 50,000 x .10 = 5,000 50,000 – 5,000 = 45,000

Jane Doe 500,000 x .10 = 50,000 500,000 – 50,000 = 450,000

It is clearly seen that Jane Doe has much more money than John Doe even though the tax rate is the same for both of them. It is apparent that Jane could pay a little more by being charge perhaps 20% which would still leave Jane with 400,000 for life expenses whereas John Doe only has 45,000 for personal expense. Hence, the progressive tax rate.

Morally, the wealthy has an obligation to help those who are less fortunate. Luke 16 beginning with verse 19 tells about a rich man who refused to aid a beggar that asked for help every day. In death, the rich man suffered in hell while the beggar was comforted. So, all taxable persons should pay their fair share of the progressive tax burden that is imposed upon all taxable persons. Everyone benefits from taxation even though taxation is disliked.