For the Common Good of the Commonwealth:
A Reflection on Fair and Adequate Tax Policies
by Religious Leaders in Virginia
Released January 15, 2004
The Commonwealth of Virginia is engaged in a public discussion of state taxes. Many Virginians are calling for tax reform. As leaders of diverse religious traditions, we want to contribute to this important public debate.
Our reflections are guided by the moral conviction that the health of the entire community is strengthened by meeting the needs of the common good. We do not pretend to be experts in tax policy. Instead we hope to offer a moral framework that we believe ought to inform and guide the tax reform effort.
No one enjoys paying taxes, but we all enjoy the benefits that taxes make possible. We drive on paved roads, send our children to public schools, place elderly disabled parents in nursing homes, and visit beautiful state parks. Thanks to state programs we breathe cleaner air, drink purer water and are protected in the event of crimes, fires and natural disasters.
There are two moral questions that need to be raised in the debate over taxes:
- Is Virginia’s tax system fair?
Is Virginia’s tax system adequate to the needs of the common good?
Tax Fairness
Our religious traditions are united in a concern for fairness and justice, especially for the poorest members of the community. The Jewish scriptures state: “Justice, and only justice, you shall follow, that you may live….” (Deuteronomy 16:20) The Christian scriptures warn against outward piety that may “neglect justice and the love of God.” (Luke 11:42) The Quran likewise admonishes: “Be upright for Allah, bearers of witness with justice, and let not hatred of a people incite you not to act equitably; act equitably, that is nearer to piety….” (5:8)
This pervasive religious concern for justice applies to how we structure our tax system. A fair tax system is equitable; it is built on ability-to-pay and avoids placing harsh burdens on the poor. Sadly, Virginia’s tax system fails to meet this basic test of justice.
In Virginia, lower-income families pay a disproportionate share of state and local taxes. According to the Institute on Taxation and Economic Policy the poorest 20% of Virginia households, those earning under $16,000 per year in 2002, paid 9% of their income on state income, sales, excise and property taxes; the richest 1% of families only 4.8%.
To make Virginia’s tax system fairer, the Commonwealth needs to update its income tax brackets and deductions; they have not been adjusted for inflation in decades. This update would help shift the tax burden away from lower-income families. In addition, Virginia needs to adopt a refundable Earned Income Tax Credit (similar to the federal credit) to offset the higher proportion of sales, excise and property taxes paid by lower income households.
Tax Adequacy
Virginia’s tax system fails to meet another demand of justice. Virginia’s taxes are inadequate to the needs of the common good.
Our religious traditions hold the belief that the needs of the community have a claim on the individual resources of its members. The quality of life of any community depends on shared investments in its communal life and its people. These investments are made possible through taxes. There is ample evidence that Virginia is not meeting its obligations to it citizens, especially the most vulnerable.
The quality of life of all Virginians is at risk when we do not provide adequate funding for schools, higher education, transportation and environmental protection. In a particular way, the most vulnerable Virginians suffer when human services are not adequately funded. For example, hundreds of thousands of working poor Virginians do not qualify for Medicaid or subsidized quality day care. Tens of thousands do not receive mental health care. Welfare benefits are so low that they leave children in deep poverty, injuring their future development and thus the common good of the whole community.
Our religious traditions are united in a concern for the common good of all. The Jewish scriptures required that some crops remain unharvested so that they could be gleaned by the poor and demanded paying a “tithe” to support “the Levite, the sojourner, the fatherless, and the widow.” (Deuteronomy 26:12, 24:19-22) The early Christian community “had all things in common” and “distributed them to all, as any had need.” (Acts 2:44-45). Muslims are required by their scripture to “pay the poor-rate” (zakat) to support those in need. (Quran 2:177)
These and other religious practices were not only admonitions to individual charity; they were frequently codified in the law of the land. Together we are required to provide for the common good of the community, especially for its most vulnerable members. The entire community and each of its members benefit when this responsibility is met.
Taxes are not an annoyance to avoid; they are a duty for all good citizens. We are citizens charged with the common good of our Commonwealth, not simply taxpayers looking out for our own welfare.
A Call to Civil Dialogue
Our moral traditions call us to do at least two things in the current tax reform debate:
- We must support tax reform that makes Virginia’s tax system fairer. We should give priority to proposals that more equitably share the tax burden.
- We must support tax reform that makes Virginia’s tax system adequate to the needs of the common good.
It is possible that people of goodwill will disagree about what services are required for the common good, but what is needed is an honest and open dialogue on the needs and resources of the Commonwealth, not partisan posturing.
There is more that needs to be said and more analysis that needs to be done, but it is our sincere prayer that this reflection will help open Virginians to a healthy debate on tax reform—a debate that can improve the quality of life of all Virginians.
Initial Signers:
The Rt. Rev. David C. Bane, Jr., Bishop, Episcopal Diocese of Southern Virginia
The Rev. Jonathan M. Barton, General Minister, General Council of Churches
Rabbi Martin P. Beifield, Jr., Rabbi, Congregation Beth Ahabah, Richmond
The Rev. Marianne M. Bird, Minister, Trinity United Methodist Church, Roanoke
Bishop Ray W. Chamberlain, Jr., Resident Bishop, Holston Conference, The United Methodist Church
Dr. Stephen M. Colecchi, Director, Office of Justice and Peace, Catholic Diocese of Richmond
M. Imad Damaj, Virginia Muslim Coalition for Public Affairs
The Rt. Rev. David Colin Jones, D.Min, D.D., Bishop Suffragan, Episcopal Diocese of Virginia
Malik Kahn, President, Islamic Center of Virginia
The Rt. Rev. Peter James Lee, Bishop, Episcopal Diocese of Virginia
The Rev. J. Fletcher Lowe, Jr., Former Executive Director, Virginia Interfaith Center for Public Policy
The Rev. Cecil E. McFarland, Executive Director, Chaplain Service of Virginia
The Rev. G. Lee Parker, Regional Minister, Christian Church (Disciples of Christ) of Virginia
The Rev. James A. Payne, Founding Executive Director, Virginia Interfaith Center for Public Policy
Joe E. Pennel, Jr., Bishop, Virginia Conference, United Methodist Church
Muhammad Sahli, Outreach Coordinator, Islamic Center of Virginia
The Rev. Dr. M. Anderson Sale, General Presbyter, Presbytery of the Peaks
The Rev. Dr. Theodore F. Schneider, Bishop, Metropolitan Washington DC Synod, Evangelical Lutheran Church in America
The Rev. Cessar L. Scott, Executive Minister, Baptist General Convention of Virginia
Rabbi Merrill Shapiro, Rabbi and Spiritual Leader, Congregation Or Atid, Richmond
David K. Schumate, President, Virginia Council of Churches, and District Executive, Virlina District, Church of the Brethren
The Rev. C. Douglas Smith, Executive Director, Virginia Interfaith Center for Public Policy
Bishop Walter F. Sullivan, Bishop Emeritus, Catholic Diocese of Richmond
Barbara A. Williamson, Representative to Virginia Interfaith Center for Public Policy for Religious Society of Friends
(Religious organizations listed for identification purposes only.)
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