Posts tagged with: tithing

tn-tithing-givingSelf-proclaimed “tithe hacker” Mike Holmes has a helpful piece at RELEVANT Magazine on how tithing could “change the world.” (Jordan Ballor offers some additional insights here.)

Holmes begins by observing that “tithers make up only 10-25 percent of a normal congregation” and that “Christians are only giving at 2.5 percent per capita,” proceeding to ponder what might be accomplished if the church were to increase its giving to the typical 10 percent.

His projections are as follows:

  • $25 billion could relieve global hunger, starvation and deaths from preventable diseases in five years.
  • $12 billion could eliminate illiteracy in five years.
  • $15 billion could solve the world’s water and sanitation issues, specifically at places in the world where 1 billion people live on less than $1 per day.
  • $1 billion could fully fund all overseas mission work.
  • $100 – $110 billion would still be left over for additional ministry expansion.

Such broad hypothesizing can be helpful in offering a small glimpse into what we might call the economic potential of the church. But, in addition to noting the more obvious questions about whether $25 billion (or any amount) can actually “relieve global hunger” (etc.), I would simply emphasize that such estimates are small glimpses indeed. The divine impact of the tithe stretches well beyond the material, even as it pertains to the material. (more…)

Blog author: jcouretas
Monday, January 10, 2011
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Catching up on some recent Acton commentaries. We welcome a new writer, John Addison Teevan, who is director of the Prison Extension Program at Grace College. He also teaches economics and Bible courses at the Winona Lake, Ind., school. This column was published Dec. 29. Sign up for the free, weekly email newsletter Acton News & Commentary here.

A Tithe for Uncle Sam

By John Addision Teevan

Political leaders talk as if the money Americans keep (not paid in taxes) belongs to the government and that our keeping money they could tax is an actual cost to them. This kind of distorted thinking has led us into the fiscal irresponsibility that threatens to destroy our country.

It is, of course, fair to say that there are many exemptions that, if eliminated, could bring in more tax revenue. But Congress prefers a tax code of convoluted exemptions and tax breaks that they create and sustain to keep various interest groups coming to their offices. Taxpayers love breaks such as the homeowners’ exemption that allows taxpayers who itemize to deduct their mortgage interest. Although paying less in taxes is in general a good thing, all such exemptions confuse the process, contribute to an impossibly intricate tax code and keep lawyers, accountants and tax prep software companies prospering. The amount we spend on tax preparation in terms of actual cost and time wasted compared to a simplified tax code is worth billions.

The most extreme example of the fallacious notion that government has a right to its citizens’ money is the idea is that the cost to the government of not taxing the disposable income of all Americans at 100 percent is $11.5 trillion (as if we’d bother working if we faced a 100 percent tax rate). Economist Arthur Laffer noted that the government might collect little in taxes if the tax rates were either very low or very high, because in the latter case Americans would adjust their income according to tax incentives. Government officials unfortunately tend not to think in terms of incentives but of rules and therefore assume, contrary to Laffer’s findings, that higher tax rates always bring in more revenue.

Taken to its conclusion, this thinking leads tragically to socialism. If we think the government is the best source of compassion for the needy and the engine of economic growth, then it makes sense to set taxes at high rates so the government can do all good things for the people. One small faction that I read about in an Ohio paper wants Uncle Sam to hire all unemployed people and then print the money to pay them. This childish scheme is really a variation of the more respectable idea that tax cuts “cost” the government in the same way that spending on defense or health care does.

The foolishness of the concept can be illustrated by analogy with a church. Imagine a congregation of 100 families with a budget that reflected an estimated tithe on $65,000 average family income. Using government thinking, the church budget could be $650,000 (10 percent of 100 x $65,000), even if the actual offerings to the church were only $300,000. This is based on the fairly reasonable idea that the people owe their church 10 percent of their income.

Here’s how government budget thinking might work in that church.

Budget: $650,000. Expenses: charitable relief for church members: $350,000 (54 percent), staff: $150,000 (22 percent), building expenses: $50,000 (8 percent), ministry expenses: $50,000 (8 percent); debt retirement: $50,000 (8 percent).

What is that $350,000 for ‘charitable’ relief for church members? That is the part of the tithe that the members should have given to the church, but did not. Rather than ignore it, the church would reckon it as both income and expense even though not a single dollar changed hands. Government thinking sees any foregone revenue as an expense so that the largest item in this budget is the (fictional) $350,000 expense as if the church spent that money on its own parishioners.

As it stands, the federal government appears to be incapable of balancing income and spending. Right now it is collecting about 16 percent of GDP in taxes and spending well above 20 percent, creating an immense government borrowing gap. Many politicians’ proposed solution is to demand that the existing tax regime be repealed in favor of higher rates; we can’t “afford” the lower rates, they argue. In an economic downturn, however, raising taxes is a surefire way to suppress recovery.

Addressing the spending side of the budget equation is politically painful, no doubt, but it is unavoidable. America faces difficult challenges as we try to grow out of the recession. Having the government think soberly about its tax income and budget expenses would be a good start.

Blog author: ken.larson
Friday, October 30, 2009
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Recently I got a phone call from an engineering manager I’ve known for over ten years. He informed me that he’d been laid off last spring, but before I could offer condolences he added that he’d been hired by another company in the same industry for a consulting assignment.

That temporary work had lasted over six months but was winding down. He hadn’t been a contract “consultant” before and after some additional small talk told me, “… and I’ve discovered something I never knew.” Anticipating a revelation about a new found inner strength, I listened carefully.

“You know,” he began, “when you work as a consultant, you have to pay twice the withholding for Social Security and Medicare that you do when you work for a company.” I told him that wasn’t exactly true and we discussed briefly the labor burden — those costs the employer pays in the U.S. when they hire someone.

The big story these days is employer provided health benefits, but unfortunately that subject overshadows the longer term liability an employer or company faces when they hire employees; and is certainly one of the reasons why many firms increasingly like “contract” agreements. My friend’s take on having to pay a greater amount to Social Security and Medicare was not “exactly true” because the money “contributed” by the employer was always part of his gross wages, but was obscured by the mechanism of the deceit explicit in the government’s term “employer’s contribution.” I have some experience here. I’ve been a business owner and self employed most of my adult life.

You see, the employer by law must add to and pay the government an amount equal to what he withholds for Social Security and Medicare on a full-time employee’s behalf. If you regularly earn $400 a week, you are responsible for sending $30.60 of that amount to the federal government. (And that’s separate from what you may owe for income tax.)

The employee’s Social Security portion is 6.2% of gross wages up to $106,800 a year; and Medicare another 1.45% of gross wages but without a cut off point. For most of us, the combined 7.65% is our “contribution” to the federal retirement and healthcare systems already in place. But it’s not the total “contribution.”

As stated above, an employer or company that hires you is responsible for an equal “contribution” in your name of an additional 7.65% of your gross wage. Many who work for company’s lose sight of the fact that employers must add that cost of having them on the payroll to their cost of hiring us. Put bluntly, our employee has to account for a profit of at least $430.60 a week in order to justify being on a payroll. And because of the federal government’s demand that his and the employer’s “contributions” must be paid weekly, or monthly according to the government’s demands; the system has a tendency to put its own demands on a company’s cash flow. A company has to have enough profitable receipts to be able to “contribute” their one-half of what is demanded for their employee’s government retirement and healthcare system. And believe me, the government wants “their” money first and doesn’t care what other bills an employer has to pay.

My engineer friend was facing the reality of having to be his own employer so to speak and ante up the total 15.3% all on his own. Like most consultants he’d arranged a fee that paid him an amount from which no deductions were taken. At times like these, we’re all small business owners. It’s sobering. Imagine if there was no withholding and all taxpayers had to write a check at the end of the year. How might they choose to act? These government systems managed by Caesar are soon to be bankrupt. I heard someone report recently that Medicare is in arrears by $38 Trillion.

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Fall is typically the season during which the sermons delivered by pastors from church pulpits concern stewardship. In making the case for Christian Stewardship many pastors will visit Genesis and the story of Abel and Cain. Compare and contrast are my favorite means of offering clarity on many subjects so I like the Genesis story of obedience versus selfishness. Many use the Bible to promote the concept of the tithe and if you Google Tithe you’ll come up with a plethora of explanations, indictments and opinions. Generally the percentage of income or produce that we are persuaded God asks of us is ten — 10%.

I can tell you that the tithe is a request that staggers most Christians. Those with work earning $400 a week are not likely to volunteer $40 when the plate is passed on Sunday — yet seemingly ignore the fact that $61.20 was sent to the IRS on their behalf that week.

It’s instructive to remember that the concept of the religious tithe contains a lesson which is not of taxation. It’s argued that all is God’s and all we have comes to us through His Grace. I believe that’s true.

Yet as I sat in the pew recently listening to one of those sermons about “giving” I took a break to recall and pray for my engineer friend’s employment perdicament, I also compared my own hesitation at pledging myself toward a 10% tithe in light of the reality that I was already on the hook to give Caesar 15.3% off the top. Glancing around the sanctuary, the question arose as to whether the bureaucrats at a government office could match our congregation in our common devotion to each other, our Lord; and the missions we support in service to Him.

And it got me realizing that when you compare the two: Caesar and God — 10% is one heck of a deal.

Blog author: jballor
Wednesday, December 26, 2007
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In this week’s Acton Commentary I examine “The Truth about Tithing.”

“Whatever benefits we claim to receive from tithing, whether spiritual, emotional, or financial, these are not to be the reason that we give. We give out of obedience to God’s word,” I write.

Here’s a link to a Marketplace Money report from last Friday that was the proximate occasion for the piece, “Tithing can be a good investment.” It’s a pretty disgustingly caricatured picture of tithing we get from the Marketplace report.

One more bit of evidence that the press just doesn’t “get” religion.

Blog author: jballor
Friday, February 9, 2007
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I’m a bit behind on this story, but as was reported by numerous media outlets over the past few months, a new trend has begun at some American churches. ATM machines, dubbed “Automatic Tithing Machines,” are appearing at some Protestant churches in the South. The machines are administered by the for-profit business SecureGive, run by Pastor Marty Baker and his wife, who integrated the machines at their Stevens Creek Community Church in 2005.

Proponents point to the transition to a digital age and the convenience of electronic transactions. Stevens Creek Community attendee Josh Marshall said of using the machines, “I paid for gas today with a card, and got lunch with one. This is really no different.”

Amy Forrest said this, “If you give cash, you think about it. And if you swipe a credit card, you don’t. It makes it easier to type that 4-0.”

These attitudes may not be truly representative, but they at the very least illustrate the potential for the convenience offered by these machines to turn faithful giving into something that is unreflective, automatic, mundane, and worldly. That’s certainly not the kind of giving that God wants.

Baker says of his concept, “It’s truly like an ATM for Jesus.” (more…)

Blog author: jballor
Wednesday, December 20, 2006
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“The wicked borrows but does not pay back,

but the righteous is generous and gives…” Psalm 37:21

That verse is a pretty good introduction to the issues facing people who declare bankruptcy but want to continue to give to the church. As noted on this blog previously, there was some controversy over the legalization and regulation of the inclusion of charitable donations and tithes when filing for bankruptcy.

In yesterday’s BreakPoint, Chuck Colson weighs in, supporting the efforts of the Obama-Hatch tithing bill to allow “everyone in bankruptcy to continue regularly giving to churches and charities, just as they had before” the 2005 bankruptcy reform legislation had passed.

Colson concludes, “Allowing people to continue giving to others as they try to repay their creditors only promotes responsibility.”

(More on the latest developments on this legislation and recent court decisions here.)

Following up on the story from a couple months back about restrictions to bankruptcy filings prohibiting filers from budgeting for tithing, and in the midst of the controversy surrounding Rick Warren’s invitation to Sen. Barack Obama to appear at a Saddleback Church event, news comes both houses of Congress have passed the “Obama-Hatch Tithing Bill.”

The bill would “protect an individual’s right to continue reasonable charitable contributions, including religious tithing, during the course of consumer bankruptcy. The measure passed the United States Senate in late September and will now be presented to the President for his signature” (HT: Religion Clause).

It’s good to see the folks on Capitol Hill respond when the ball is in their court. As U.S. Bankruptcy Judge Robert E. Littlefield, Jr. wrote in his original decision, “Whether tithing is or is not reasonable for a debtor in bankruptcy is for Washington to decide…. Until Congress amends [the 2005 Act], the court’s hands are tied and the tithing principles that this court once applied pre BAPCPA (the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005) have been effectively mooted.”

The judge says its not his job to legislate from the bench and that Congress needs to take action if they want to protect tithing. Congress acts and tithing is protected. Now that’s the separation of powers at work.

A week or so ago I passed along a story about the United States Bankruptcy Court for the Northern District of New York’s interpretation of recent legislation to make it illegal for those filing for bankruptcy to tithe, except under very specific circumstances (here’s a good follow-up story).

Well, yesterday Religion Clause (which is, by the way, an excellent blog well worthy of bookmarking), noted that while the aforementioned case had received a great deal of attention, “an equally important case on the issue decided several weeks ago by the Second circuit seems to have gone largely unnoticed.”

In a case decided in late July,

the Second Circuit Court of Appeals held that treating some contributions to churches as fraudulent conveyances in bankruptcy does not violate the Free Exercise of Establishment clauses. It went on to interpret various provisions of the Religious Liberty and Charitable Donation Protection Act of 1998. It held that the statute’s shield for charitable donations of up to 15% of a debtor’s annual income applies to aggregate annual transfers, not to individual donations. The court held that in this case, the Church had waived its claim that it should be able to retain amounts donated to it under the 15% limit. Finally it held that on remand the church could raise the statutory defense that donations in excess of 15% “were consistent with the practices of the debtor in making charitable contributions.

Check out Religion Clause for the case details and relevant links.

Religion Clause, which is “devoted to legal and political developments in free exercise of religion and separation of church and state,” is run by Howard M. Friedman, Distinguished University Professor of Law Emeritus at the University of Toledo College of Law.

A press release from the National Association of Consumer Bankruptcy Attorneys, linked over at WorldMagBlog, claims that the bankruptcy reform legislation passed last year is being “reluctantly” interpreted by the United States Bankruptcy Court for the Northern District of New York to mean that “those going through bankruptcy may not tithe to their church or make other charitable donations … until after they have paid off credit card companies and other creditors. Before the new law went into effect, bankruptcy court judges were required to permit debtors to tithe a portion of their income on a regular basis.”

Those are some pretty strong claims, and you can see the generally negative reaction that this announcement is getting from Christians at WorldMagBlog. Henry Sommer, president of the NACBA, said: “For religious Americans who find themselves deeply in debt due to job loss, catastrophic medical expenses or other circumstances, the 2005 reform legislation didn’t just reword the federal bankruptcy code, it also effectively rewrote Exodus and Deuteronomy. Many who practice their faith and believe that they are bound by creed to tithe a portion of their income will find that Congress effectively decided that what credit cards want is more important than the deeply personal religious practices of Americans.”

Sommer added: “Our nation’s founding fathers who envisioned a separation of church and state never imagined that this division would be used to engorge the profits of moneylenders at the expense of churches.”

If the New York courts interpretation is legitimate, that “this change [under the 2005 law] effectively closes the door for debtors who are above the median income from deducting charitable contributions as an expense unless they can establish the contributions fall under the IRS guidelines,” then what are Christians to do? Is it morally valid for Christians to violate the terms of bankruptcy to continue to tithe?

At the very least, Christians need to be educated about the effects of filing for bankruptcy, one of which apparently may be some infringement on religious practice. As it stands, U.S. Bankruptcy Judge Robert E. Littlefield, Jr. also seems to be calling for some clarification from Congress: “Whether tithing is or is not reasonable for a debtor in bankruptcy is for Washington to decide…. Until Congress amends [the 2005 Act], the court’s hands are tied and the tithing principles that this court once applied pre BAPCPA (the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005) have been effectively mooted.”