Dear Catholic Exchange:
Many businesses pay people “under the table” to avoid being taxed by the IRS and some avoid putting cash they might receive back through the business. Many people do this in good faith because they think the U.S. tax system is flawed. What did Christ really mean by “render to Caesar what is Caesar’s and to God what is God’s”?
Thanks,
Carolyn
Dear Carolyn,
Peace in Christ! When Jesus said “render to Caesar what is Caesar’s and to God the things that are God’s” (Mt. 22:21), He was wisely avoiding a trap in which the Pharisees sought to catch Him. If Jesus said not to pay taxes, then they could indict Him against Rome. If He said pay taxes, then those seeking a Messiah to deliver them from Rome’s power would turn against Him. Jesus saw through the hypocrisy and, as usual, did not give the answer the Pharisees wanted. Instead, He made clear there are things that belong to God and things that belong to the temporal order—in this case, taxes.
Some use this passage to say Jesus said to give only to Caesar what is his, and Caesar is taking too much! That is probably true, but Holy Scripture also says not to render evil for evil. Suffering evil is better than committing evil (cf. 1 Pet. 3:17). The tax system today is no doubt flawed, just as it probably was in Jesus’ day. Jesus did not, however, recommend tax evasion. A flawed tax system is not in itself a moral justification to evade taxes. In the situation you describe, not only do the businesses avoid taxes, but also the person paid “under the table” receives income on which he pays no taxes. Additionally, there is a question of intent. Do the business owners pay people under the table only because they feel the system is flawed, or do they seek to increase profits by unjust means?
There may be times when it is morally legitimate to resist civil powers (cf. Catechism, no. 2242), but for an organized business to evade the duty to pay taxes does not seem to be one of those times. In fact, paying taxes is a moral obligation (cf. Catechism, no. 2240).
I hope this answers your question. If you have further questions on this or would like more information about Catholics United for the Faith, please contact us at 1-800-MY-FAITH (693-2484). Please keep us in your prayers as we endeavor to “support, defend, and advance the efforts of the teaching Church.”
United in the Faith,
David E. Utsler
Information Specialist
Catholics United for the Faith
827 North Fourth Street
Steubenville, OH 43952
800-MY-FAITH (800-693-2484)
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