Tax Time and the Old Testament

The Old Testament opens the topic of taxation in Genesis 41 with the story of Joseph and Pharaoh. Joseph had interpreted the Pharaoh's dreams as omens of seven years of prosperity and seven subsequent years of famine. After a bit of consultation, Pharaoh pulled out his signet ring and put Joseph in charge of coming up with an economic plan.

The basic plan is outlined in verse 34: Let Pharaoh exact a fifth of the produce of the land of Egypt in the seven years of abundance. A fifth part is a 20% tax rate.

Rabbi Lapin comments on this: That an outsider's recommendation to tax an entire country stretches credibility. That his subjects also found the recommendation pleasing can mean only one thing— The tax rate they were anticipating, reports Talmudic tradition, was considerably higher than Joseph's 20%.

A reasonable tax plan which allowed the Egyptians to keep 80% of their labors and promised protection against the future famine actually spurred the economy on. Verse 49 reports, "Thus Joseph stored up grain in great abundance like the sand of the sea, until he stopped measuring it, for it was beyond measure."


Yet another mention of taxation is found in Proverbs 12:24. "The hand of the diligent shall bear rule: but the slothful shall be under tribute." Under tribute means subject to taxation. Some translations read put to forced labor. Forced labor is work done without payment or benefit, which goes against the biblical principle that a workman is worthy of his hire.

According to the 11th century sage, Rabbi Solomon Yitzchaki, this passage warns that excessive taxation hinders productivity and comes to pass only through the laziness and indifference of citizens who decline to resist oppression. In other words, resisting a government's impulse to tax requires vigilance and energy.




Information pertaining to the rabbis was taken from an undated Wall Street Journal article.