[Avodah] Taxes

[Micha Berger]

On Tue, Jul 01, 2008 at 07:08:31PM +0300, Efraim Yawitz wrote:
: I don't know if this is really true, but I read once that in Italy, if
: one would try to obey all the tax laws on the books, he would have to
: pay something like 200% of his income to the government.  Are we
: really obligated to follow "dina d'malchusa" to this extent?

DDD applies to the law as practiced, not as codified. And while there
are machloqesin about its limits, even Tosafos include a fair (as opposed
to antisemitic) tax.

RHS's forumulation, based on shutefim, would include the gezeilah from
any other shutefim as part of the issur, regardless of one's take on
gezel aku"m. (Unless one was the only Yehudi in the tax base.)

Speaking of gezel aku"m, see
<http://www.aishdas.org/avodah/vol04/v04n347.shtml#11>, by R' Mark
Dratch, which has a well dosumented discussion of the topic. I would just
reiterate the SMa"G's observation that the discussion is only theoretical,
since risking chilul Hashem would make it assur either way. Interestingly,
the Rambam raises two side issues (he himself holds assur, but no chiyuv
to return the merchandise): chilul Hashem, and the negative impact on
one's middos.

Tir'u baTov!
-Micha


Taxation and Dina Demalchusa
Rabbi Hershel Schachter
Taxation 
Copyright (C) 2005 by The TorahWeb Foundation. All rights reserved.
Editor's Note: This essay was originally printed in Einayim L'Torah,
Volume 20, Number 9. Reprinted here, at Rav Schachter's behest, with
permission.

In the days of the Talmud taxes were collected for the purpose of
enriching the king. Based on the parshas hamelech in Sefer Shmuel (Shmuel
I 8:11), the Rabbis formulated the principle of dina demalchusa dina
(Nedarim 28a), literally, the "law of the land is binding": everyone
must pay taxes. In Shulchan Aruch (Chosehn Mishpat 369:8), the Rishonim
are quoted as having pointed out that if the taxes are unfair, or
discriminatory (which is also unfair,) this would not constitute "dina"
demalchusa -- "the law of the land," but rather "gazlanusa" demalchusa --
"the embezzlement of the land," and such tax laws are not binding (see
Nefesh Harav p. 269). A system of graduated income tax is considered
fair and reasonable (see LeTorah Velemoadim by Rav Zevin, p. 118).

There was a theory among some of the Baalei HaTosfos that the idea behind
paying taxes is the principle of rent. The land of each country belongs to
the ruler (or the government) of that particular country, and the owner
of any real estate is entitled to charge rent from all those who want
to live on their property. The one exception to this rule (according to
this view) is Eretz Yisroel, which the Torah declares belongs to Hashem
(Vayikra 25:23). Since Hashem is the true property owner, and He has
encouraged all of Bnei Yisroel to live in Eretz Yisroel, no government
in control there ever has the right to charge taxes (rent) because they
are not the rightful landlord. The Landlord (with a capital "L") has
granted permission for all of Bnei Yisroel to live in His country (what is
called the "paltin shel melech" -- "the palace of the king".) This view
is quoted by the Ran in his commentary to Nedarim (28a). There are many
religious people who are not that knowledgeable of any other comments
made by the Ran on Nedarim, either before or after page 28 and are only
familiar with this one position of the Ran. The truth of the matter is
that not only has this view not been accepted in Shulchan Aruch (Chosehn
Mishpat 369:6), it didn't even gain honorable mention. The Shulchan Aruch
quotes verbatim from the Rambam that one is obligated to pay taxes both
in Eretz Yisroel as well as in other countries.

It is important to note that today the basis for taxation is totally
different from what it was in Talmudic times. Today, all modern countries
provide a variety of services: They provide streets and highways, and
maintain forests and museums. They provide fire, police, and military
protection. They collect garbage and deliver mail. They do medical
research to discover cures for diseases, etc. The taxes are collected
for the purpose of covering the annual budget, which pays for all of
these projects. The halacha views all of the people living in the same
neighborhood as "shutfim" -- "partners," sharing a common need for a shul,
yeshiva, mikveh and an eruv, and therefore, the "partners" can force each
other to put up the needed amount to further their partnership. So too,
all people who live in the same city, state, and country are considered
"shutfim" with respect to the services provided by that city, state, and
country. The purpose behind the taxes is no longer "to enrich the king"
in the slightest. In addition to all the other expenses, the government
officials have to be paid as well, but it is because they serve as the
employees of all the citizens for the purpose of looking after all these
services, and seeing to it that they are properly taken care of. In our
modern world, one who does not pay his proper share of taxes is no longer
viewed as cheating the king (or the ruler) of the country, but rather
as cheating (i.e. stealing from) his partners. The amount of money not
paid by the one who cheats will have to be taken care of by having the
rest of the "partners" put up more money from their pockets to cover
all the expenses of the partnership. And even if much of the tax money
goes towards expenditures that are not to one's personal liking and
that one gets nothing out of, such is the halacha of any partnership:
the majority of the partners have the right to determine what are the
reasonable needs of the partnership (Choshen Mishpat 163:1). Therefore,
this majority has the legitimate right to force the minority to contribute
their share towards properly furthering the partnership.