How Much is Enough? Jewish Views on Taxation, Charity and the Big Society

By Robert Golbert - Director of Projects and Marketing, JABE

Last week London Mayor Boris Johnson urged London's super-rich to "give a lot more" after receiving their multimillion pound bonuses. "We want them to make money, we want them to generate jobs and growth for the rest of society. But they've also got to understand that they could make a much, much bigger contribution. They could give a lot more." The Mayor blamed the 50p tax rate for the lack of generosity, saying "because people feel they are paying more and more of their income in taxation, they somehow felt they'd made their contribution."

The Jewish view on the relationship between taxation and charitable giving is complex. Indeed, throughout history the Rabbis have struggled with these issues just as much as today's politicians. The Bible stipulates giving ten percent of one's income (hence the expression "tithe", meaning one-tenth). The legal source is Deuteronomy 14:22, "You shall tithe the entire crop of your planting, the produce of the field, year by year." There are also mandated tithes to pay for the Levite's service in the Tabernacle (Numbers 18:21, 24) and to help the "stranger, the orphan and the widow" (Deuteronomy 26:12-13). The Bible also commands that the corners of one's field and any fruit left on the vine after harvesting must be left for the poor (Leviticus 19:9-10). The Talmud instructs Jews to give at least ten percent of their annual net income to charity (Maimonides, Mishneh Torah, 7:5).

Judaism has always recognised the need to finance governmental functions and the idea that taxation benefits the population as a whole, including the Jewish community. Jewish communities throughout the ages had a wide variety of taxation systems (income, wealth, property, poll tax) and tax grades (progressive, proportional or regressive). However, there is no one tax or tax system that is dictated by Jewish law. Implicit in the Rabbis' discourse has always been the notion that any taxation system must be based on fairness. The Jewish scholar Maimonides wrote that the taxation scheme of one's country must be adhered to as long as it is objective and fair. Judaism, therefore, recognises the need for a fair, just and objective system of imposing and collecting taxes and, where such a scheme exists, requires compliance with it.

But what about businesses or the wealthy giving more than that required by the government, as the Mayor is asking and as implied in David Cameron's vision of the Big Society?

Reaching out to those in need has always been a central tenet of Judaism. The Hebrew word "Tzedakah" has traditionally been roughly translated as meaning charity, however the literal meaning of the word is "justice". This is consistent with the Jewish notion that giving charity is an act of justice. Judaism believes that all people, no matter how poor, have a legal right to food, clothing and shelter and it is therefore unjust and even illegal for Jews who are more fortunate not to give to those in need. Thus, Jewish tradition and law views charity as obligatory, rather than voluntary, self-taxation.

Although in Judaism ten percent of annual net income is considered the minimum obligation to give, one is certainly allowed and encouraged to give more although not to the point of becoming needy oneself or otherwise being forced to neglect other aspects of one's life due to giving.

But does charity always have to refer to giving financially to those in need? Are there other ways that businesses or individuals can contribute to society? In his seminal book of Jewish Law, the Mishneh Torah, Maimonides describes eight levels of Tzedakah (Laws of Gifts to the Poor 10:7), the highest of which is to help someone become self-supporting. This could include giving the person a job or helping them start their own business. Not only does this help the person in need, it has the knock-on effect of helping others: if you help someone start a business, he or she can then employ others and so on.

There is another aspect of giving as well: the giving of one's time and particular talents. The Talmud says "Greater than one who does a good deed is one who causes others to do good deeds" (Baba Batra 9a). If one wants to make a greater contribution to society then just paying their taxes or writing a cheque, one can become more involved in their community. They can volunteer in a communal or civic organisation and mobilise the efforts of others as well. Businesses too can support communal or charitable organisations financially or by encouraging volunteerism among their staff.

According to Jewish tradition, the benefits of giving are so great that the giver benefits even more than the recipient. In other words, giving doesn't have to be a one-way street. If you or your business supports your community, your community will support you and all of society benefits. Giving thus becomes a win-win situation for all those involved.

http://www.thejc.com/comment-and-debate/comment/45355/need-should-eradicate-greed