Catholicism and taxes

[ch3p3]

I have a big question about Catholicism and taxes. The question is...should Catholics pay taxes in their jurisdiction unconditionally?

What we know:

* In most countries, even developing countries, there's an income tax, but can't be enforced at scale because most jobs are paid in cash

* Paying taxes is not the same as donating to the Church or to charity

* In the US under Eisenhower, income tax in the highest tier was 92%, but apparently very few paid that much in taxes

* Governments often incentivize certain investments over others through taxation. US favors real estate due to the "same-kind" capital gains exemption (word's out that current president wants to end this), in the US there's a "savings" account (can hold stocks) and it's tax-free to withdraw to pay medical bills, whereas in Canada there's a similar product with unconditional tax-free withdrawals, plus Canada spoke of launching a comparable product for tax-free withdrawals conditional upon buying one's first home

* Crypto taxes are by no means mature. Governments do not understand network fees, NFT's or DeFi for that matter

* In the Gospel, Jesus said "Give to Ceasar what belongs to Ceasar, and to God what belongs to God"

* The Gospel seems to be silent on inflation, which is a pretty old phenomenon

 

I'm not saying "don't tax the rich", don't tax anybody, or tax evasion is ok. But what's the threshold or limit? If "everybody's doing it", does God judge those for not paying taxes despite their local government expecting them to? If the government can't even properly define how something must be taxed (crypto), how can one even calculate this? Is it "best efforts"? I'm not defending those who are wealthy (those with $25 million net worth or more) who resort to offshore trust accounts, but rather the middle class who attempt to protect their assets from inflation, something that the government DOES have some control over (the same government who taxes us).

[Ash Wednesday]

Pretty sure paying taxes is a moral obligation and that's outlined in both the bible and the catechism, as part of the obligation to obey the law unless it's contrary to the faith.

Though I don't think it's a sin be efficient and minimize the tax you owe or protect assets from inflation through legal means at the advice of an accountant/financial advisor. "Everybody's doing it" is not really a good rule of thumb for moral or legal guidance -- I'd go to a good, reputable and reliable tax advisor for complicated tax questions -- questions of any judgment of God aside, there is the incentive of wanting avoid serious legal repercussions in the future.

I'd think you would have to follow the law as it applies to wherever your tax residency is, and your local tax authority is not going to care what the law is somewhere else as far as what they expect someone to follow. The fact that some migrant worker down in Mexico got paid in cash and may not have reported it is irrelevant if you're in the U.S. and you earned money and owe tax on it but simply don't want to report and pay it. Telling the tax authority you didn't report and pay because others can get away with it is not really going to go over well and we still have to obey the laws that apply.

In my case, the US is the only one of TWO countries in the entire world that has citizen-based taxation as opposed to residency based like everyone else. So as an expat I still have to report to the IRS even though I also file and pay in the U.K., even though I don't make enough to have to pay taxes in both countries and am largely protected by a tax treaty to avoid double taxation. I hate the fact that I still have to file, but I do it anyway because I don't want to have to look over my shoulder worrying about an audit and avoidance penalty with technology getting more efficient about monitoring banks, and wouldn't want to risk never being able to travel to see my family or even retire back in the U.S. at some point. I think it's a stupid law for those of us under the allowed foreign earned income threshold and don't owe US taxes, but I have obligation and incentive to still obey it. Many expats that no longer want this obligation renounce their U.S. citizenship for this reason, at least if they don't plan on returning... but again I want to keep my options open.

[cruciatacara]

Render unto Caesar and all that stuff...

[rachael]

yes

[Dennis Tate]

On 11/7/2021 at 7:29 PM, cruciatacara said:

Render unto Caesar and all that stuff...

That is a very good point.....

I have a theory in mind on how the Roman Catholic Church could pay off all taxes owed to all governments in all nations by all Roman Catholics.  No Kidding.....

 

I taught English in Quito, Ecuador from 2001 to 2002 so after seeing real poverty with my own eyes I began to pray and think and think and think and think about all of this and I came up with four political campaigns already.

 

My 2006 and 2004 campaign writing can be viewed here

www.BankingSystemFlaws.blogspot.ca/

 

My 2008 campaign can be viewed here

www.BankingSystemsFlaws.blogspot.ca/

 

I was thinking in terms of my campaigns being translated into Spanish to inspire my former students at Universidad Technologica de israel de Quito.  I wanted side by side English and Spanish but I haven't managed to get that arranged yet. 

 

 

[Ice_nine]

I'm just glad I was able to contribute, in a very small way, to gender studies programs in Pakistan.