If one listened only to the avalanche of political ads during the recent election campaign, one might believe that Americans were being crushed under the heaviest federal tax burden ever, and that raising taxes on the wealthy (the “job creators”) was tantamount to national economic suicide. This view, bolstered by much of the record $4-6 billion raised for the Presidential and Congressional campaigns, was heavily supported by a small group of billionaires, perhaps topped by casino magnate Sheldon Adelson, who reportedly made contributions of a record $150 million himself. In total, billions of dollars were spent by people who claimed that they were forced to spend too much in federal taxes.
In reality, Americans today have the lowest federal tax burden since 1950. Historically, in the 1950s and early 1960s the economy was very healthy, and the top income tax bracket paid around 90 percent. When tax rates were dramatically reduced for the wealthiest Americans, as in the 1920s and over the last decade and a half, brief prosperity resulted, followed by a catastrophic economic crash and the greatest inequality in wealth between the very rich and the rest of the population.
The Jewish tradition has much to say about fairness in taxation, and consistently endorses the principle that those who benefit the most from society have the greatest obligation to pay for the support of the community. For example, Deuteronomy 15:4 states: “And there shall be no needy among you.” In addition, farmers were instructed to go over their fields and vineyards only once, and not to reap the corners of their fields: “Leave them for the poor and the foreigner” (Leviticus 19:9-10). According to the Mishnah, the community was expected to support a communal kitchen, burial society, and other needed infrastructure (Peah 8:7). Later, more defined funds presided over by prominent members of the community were set up to deal with the poor. In order to achieve this, citizens were taxed in proportion to their ability to pay. Thus, Jewish law has consistently upheld the idea that a fair taxation is necessary for the maintenance of the community. Continue reading