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Home > Catholic Social Teaching > To Pay or Not To Pay More Tax
The increase in Goods & Services Tax (GST) was a controversial point that ignited passionate debates in many quarters. After all, who likes paying higher taxes? And no government takes pleasure from announcing tax hikes either.
Many people, especially those who belong to the school of neoliberal economics, often say that taxation is theft. Why should a portion of an individual’s hard-earned money be taken forcefully by the government? Does the government even have the right to do so?
If we try to see it from another angle, the government cannot operate without funds that come from taxation. If the government cannot function, it will be difficult for our society to function, let alone flourish. (Imagine what happens if police officers and teachers in public schools are not getting paid.) So paying taxes does involve a real personal cost. However, it is necessary for building a society where persons can thrive.
Moreover, this is not unfair because each one of us has been able to live and grow in a conducive environment because of the contributions of those before us.
In this sense, paying taxes is a form of solidarity with our fellow human beings living in the same nation. Each of us has a responsibility to contribute, and those contributions benefit all of us.
See what the Church has taught about the principle of solidarity; when we help others, we are also helping ourselves because we all need each other.
Reflect: Do I think of my financial contributions to the country as my responsibility or coercion? What more can I do to help make our society thriving as a whole?
The main concern over tax hikes should not be whether we must contribute more financially. The crux of the matter should be whether those of us who are already struggling to make ends meet will end up struggling even more. The Church is always particularly concerned for the poor and vulnerable. Jesus was often found around the poor and marginalised.
Proponents of the GST increase said that the additional funds would help the elderly and families in need of more healthcare subsidies and childcare support. On the other hand, opponents argued that increasing tax when the economy was not doing well might significantly increase cost of living for everyone including the ones in need.
The Church does not claim to be an expert in technical matters such as how policies should be implemented. The Church can, however, offer moral insights and principles that inform policy making. Since the debate revolved around which decision would make the vulnerable better off, the Church would not take sides. Both sides are right for prioritising the needs of the poor.
See what the Church has taught about how the Church favours the poor because God has preferential love for them.
Reflect: When I examine personal decisions or government policies and discussions surrounding them, do I consider whether the poor are prioritised? Am I only concerned for my own well-being and for those around me?