Federal Income Tax Being Nixed?

Eliminating federal income tax for individuals earning less than $150,000 per year is gaining traction after the idea was first floated during last year’s Presidential campaign.

The measure is like a fire being stoked with each week offering new talking points and proposals. The move would aim to provide significant tax relief for middle-income Americans and if implemented, it could allow affected individuals to keep up to $24,000 annually that would otherwise go to federal taxes.

According to the U.S. Census Bureau, 93% of Americans 15 years of age and older make less than $150,000 annually which means the vast majority of Americans would benefit in terms of the money that goes straight into their pockets instead of government coffers.

Under the proposal, however, Americans would still be forced to pay state and local taxes, as well as Social Security and Medicare.

Whilst delivering a speech in Florida last week, President Trump commented on the issue of a federal income tax stating, “We had no income tax. The income tax came in…1913. As I said in my speech last week, instead of taxing our citizens to enrich foreign nations, we should be tariffing and taxing foreign nations to enrich our citizens.”

“It’s time for the United States to return to the system that made us richer and more powerful than ever before,” he added. “You know, the United States in 1870 to 1913, all tariffs. And that was the richest period in the history of the United States, relatively speaking.”

Roughly $4.92 trillion in federal income taxes were collected for the 2023 filing year which has sparked significant debate on how the government would offset the loss in revenue, with potential solutions including tariffs on foreign imports and cracking down on overseas tax evasion.

Trump’s solution? To create a new “External Revenue Service” that would collect revenue from tariffs. “Instead of taxing our citizens to enrich foreign nations we should be tariffing and taxing foreign nations to enrich our citizens,” Trump claimed. “Does that make sense? Right?”

In addition to abolishing the federal income tax, Trump has also floated the idea of moving 90,000 IRS agents that Biden hired to the border to patrol the area and removing taxes on tips.

Is Nixing Federal Income Taxes Wise? Let’s Look At The Bible.

The Bible addresses the issue of taxation in several passages, so let’s look at a few.

In Matthew 22:21, Jesus instructs us to “Give back to Caesar what is Caesar’s, and to God what is God’s,” which informs us that we are to pay taxes as it is a duty that aligns with the authority of the government and our duty as citizens of the nations in which we reside.

Similarly, in Romans 13:6-7, Paul instructs believers to submit to authorities, which includes the paying of taxes as part of our God-given role to maintain order. This Scripture does not mean, however, that we are to disobey God if the government tells us to. In such cases, we are to obey God and disregard government’s edicts.

In the context of taxation, these scriptures aren’t to be seen as an endorsement of all forms of taxation, especially in cases where the taxation system becomes oppressive, exploitative, or misused to perpetuate injustice, but rather, they are to help us understand that there is a responsibility as believers to still fulfill our duty to the nation in which we are planted.

The Bible’s teachings on taxation highlight that excessive taxation or the misuse of tax revenue is wrong.

In the Old Testament, the practice of heavy taxation was often associated with corrupt rulers, as seen in the reign of King Solomon’s son, Rehoboam, who imposed harsh taxes on the people (1 Kings 12:4-11).

1 Samuel 8:10-17 is yet another example for us:
“This is what the king who will reign over you will claim as his rights: He will take your sons and make them serve with his chariots and horses, and they will run in front of his chariots. Some he will assign to be commanders of thousands and commanders of fifties, and others to plow his ground and reap his harvest, and still others to make weapons of war and equipment for his chariots. He will take your daughters to be perfumers and cooks and bakers. He will take the best of your fields and vineyards and olive groves and give them to his attendants. He will take a tenth of your grain and of your vintage and give it to his officials and attendants. Your male and female servants and the best of your cattle and donkeys he will take for his own use. He will take a tenth of your flocks, and you yourselves will become his slaves.”

In this passage, the prophet Samuel warned the Israelites about the future consequences of having a king, one of which is taxation as the king would take a significant portion (a tenth) of their possessions, including grain, livestock, and even their children’s labor.

This passage highlights the burden of high taxes that can be imposed by earthly rulers and serves as a cautionary reminder about the potential exploitation of the people and speaks to the importance of having good rulers in place.

Whilst taxation is not inherently evil, any system that oppresses, exploits, or disregards the welfare of people through high taxation or any other means, that systems contradicts the principles that God advocates in His Word.

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