Part 7: Unavoidable Debt and Taxes

How do we think about tax and debt as Christians? Here again, the twin principles of avoiding greed and being generous along with trusting God and not being anxious help us navigate these issues.^[1]

As we finish our exploration of money in Scripture, we need to briefly consider taxation and debt. These are two significant topics which we cannot cover comprehensively in this brief article. However, we can consider how generosity and trusting God can shape our attitudes to these issues in ways that honour the Lord Jesus.

Taxation

Taxation is a thorny issue. Christians attitude to taxation can vary from thinking it a kind of ‘legalised theft’ (and therefore immoral) through to seeing it as a social good to be endorsed. The issue is coloured by our sense of how our taxation might be used within our society, the level of taxation (particularly in comparison to other countries or times) and who is taxed.

Scripture’s view regarding taxation is surprisingly simple. Tax evasion is sinful and we need to repent of it (if we have engaged in it) and pay what we are supposed to pay. Romans 13:6-7 is uncomplicated and clear. If the government says we need to pay a certain tax or revenue then we are obliged to pay it. This is consistent with the example of Jesus choosing to pay what he considered an unjustified tax and using tax collectors as examples of verified sinners.^[2]

The social and political context of Romans 13 is helpful as we consider this further. Roman taxes were a substantial proportion of a person’s income. They were gathered unfairly, according to the ethical standards of the tax collectors (which were notoriously low). They paid for the Roman military which commonly engaged in ruthless and corrupt practices which were against Christian principles.^[3] It would have been hard to run an argument to the first Christian who read Romans 13 that their good was being served by the taxation that was exacted from them. Despite this, Paul is brief, clear and straightforward. As followers of Jesus, they – and we – are to pay taxes.

In our day, we can see that paying our taxes often adds to the social good. It also, for example, eases the burden of identifying and penalising tax evasion on society.^[4] It enables us to trust God with our government and continue to pray for it, as we are  commanded.^[5] While we might not pay more than we need to, this attitude is itself a generous one in which we demonstrate we do not fear because we trust in God.

Debt

Debt is a difficult problem for many Australians. In 2022, the average household debt was estimated at around A$276,000, suggesting household debts total just under A$2.6 trillion. ^[6] This includes mortgages, of course, but is still a significant sum of money and the burden of debt for many of us creates stress and anxiety.

As with taxation, our attitude to debt needs to be framed by the gospel. Scripture is clear that if we owe someone money we need to pay them back.^[7] Although this is a simple concept, in our social and economic context it is complicated. In order to have the credit rating we need to secure a mortgage, we need to demonstrate that we can manage debt. So, we need to go into short term, smaller debts so that we can obtain a lifetime debt. Further, increasingly this is experienced by us as numbers on a computer screen. Our disconnection from physical money, along with the constant temptation to go into more debt for short term gain, can inoculate us from the necessity of repaying debt. As Christians, being clear that we don’t own the money that has been loaned to us, helps us to develop the discipline to trust God with our debts and pay them back faithfully.

Scripture is clear that it is better to avoid debt altogether, but in practice for most of us that is impossible.^[8]We can live out that principle however by being disciplined in how much debt we accrue and for what purpose. Banks and other lending facilities will tempt us to keep on borrowing and our circumstances often mean that we do need to take on substantial debt to secure long-term housing. If we understand that the purpose of work is not to pay back debt but to have money so that we can meet our obligations and to be generous, then we will try to avoid as much debt as possible.^[9] The extra interest we need to pay on top of the capital repayments minimises what we have to give away. Having high or increasing levels of debt also increases our anxiety and challenges our capacity for generosity.

As we think about the discipline of minimising our debt and paying it back faithfully, it is helpful to consider why are tempted towards debt. For some of us, one of the sins we will fight in this regard is covetousness. We want things that we cannot afford for all kinds of reasons. The Bible warns us about this sin and calls on us to follow Jesus by denying ourselves.^[10] While this is difficult for us to hear, knowing that this is part of how we live as disciples of Jesus can help us to manage and minimise our debt.

For some of us, debt is going to be the reality for the rest of our lives. As we think about debt, the foolish or necessary decisions we have made in our lives have led to more debt than we can manage. There are advisers and strategies we might be able to access to relieve some or all of that and these might worth investigating.^[11]However, the greatest relief comes from God himself. Although we owed him more debt than we can ever pay, he sent his Son to pay for us completely. In Christ, we are able to face the future knowing that in him we are free. Like the slaves in the early church, our freedom in Christ is not dependent on external circumstances.^[12]This enables us to trust God with our situation and to expect him to look after our physical needs as he promised.^[13]

Basic Principles

Throughout out exploration of money, we have used the framework of trusting God with our anxieties and growing towards greater generosity as the twin principles that govern our thinking on this issue. Jesus’ death and resurrection matter to us in all kinds of ways, including how we think about and use our money. However, as we continue to discuss, think and pray about money, we can do so as those who live dependent on his mercy, being transformed by his Spirit in the freedom he gives us as forgiven in Christ.

[1] The Gospel in Society Today committee is grateful for the time and expertise of Dr Andrew Bain. Andrew is QTC Vice Principal, Ethics lecturer, and former economist. Although any errors remain the responsibility of the writer, the wisdom he provided will be reflected throughout these articles and from time to time will be directly referenced

[2] Matthew 17:24-27; Luke 18:10-14

[3] Conversation with Dr Andrew Bain

[4] Chapter 4 is full of thought provoking observations and examples, such as those found on page 71. (Economics in Christian Perspective: Theory, Policy and Life Choices by Victor V. Claar and Robin J. Klay; IVP: Downers Grove, Illinois 2007) p. 206

[5] 1 Peter 2:12

[6] How much debt does the average Australian have? Cited 15^th January, 2025

[7] Romans 13:8

[8] Conversation with Dr Andrew Bain.

[9] Ephesians 4:28

[10] Exodus 20:17; Mark 8:35-36

[11] National Debt Helpline: 1800 007 007 and online: Welcome Page – National Debt Helpline;  There are also other debt management systems and help available for a fee.

[12] 1 Peter 2:16

[13] Matthew 6:33-34

Read Matthew 6:1-4; 25-34

1. How does knowing God shape how we give? (verses 1-4)
2. Why might ‘secret giving’ matter to God? How does ‘secret giving’ challenge our hearts?
3. When might ‘secret giving’ not be practical? How can we minimise the ‘loudness’ of our giving when this is the case? What are some ways we can speak of this to ourselves and pray about this that might help us in these situations?
4. What does Jesus say about God’s knowledge of our need for food and clothes in 6:25-31? How should this shape our attitude to these things?
5. What does it mean to ‘seek God’s kingdom’? (6:32-33) How might this affect how we live from day to day?
6. What does Jesus’ conclusion in verse 34 mean?
7. How do needing to live in this world (and so needing food) and needing to follow Jesus in this world interconnect according to this part of Scripture? What would you like to do differently as you reflect on Jesus’ priorities and God’s generosity?
8. How might this affect your prayer life?