9 Jun 2022

339

Taxes For Trade or Business

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Academic level: College

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Taxes are filed on an annual basis in the state of Georgia. The amount due is calculated based on the gross income from salary, business ventures such as rental income or any other as well as passive sources of income such as royalties, dividends and capital gains. Income tax is deducted from a sum total of all this sources. The individual filing their returns is expected to declare all their returns and calculate a sum total of 5% tax as returns (Mason, Utke & Williams, 2018). 

Wes the orthopaedic surgeon is able to stay within the confines of the law by reducing the amount of income tax he should pay. His strategy is legally binding because he is allowed by the law to file his practice and dairy farm as two separate assets and income. This in in addition to the business expenses that can be included in the non taxable deductions. In doing this, Wes is able to reduce the amount of income taxes he pays annually, while still being a law abiding citizen. He does this by including allowing, the travel and employee expenses for both the orthopaedic surgeon clinic and from the casual and permanent staff at the newly established dairy farm. Wes may get to include additional deductions if he includes spouse dependency as an expense or loss. 

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Although Wes is legally justified in his actions, he may be deficient from a Biblical point of view. This is not to say that he business entirely on the wrong. For starters, he is partially obeying the laws of the land as is demanded by the Bible .This is also in direct obedience to the words that command believers to respect their leaders and to obey them. Wes is failing in his obligation when his actions are weighed against the words of Jesus. It is written that man should give to God what belongs to God, and to Caesar what belongs to Caesar. What belongs to Caesar is inadvertently referring to taxes that are demanded from the citizens of the land (Luke 20: 19-26, NIV). 

Wes is going out of his way to find means of paying less taxes to the government. It simply means that he is determined to find a loophole that will allow him to keep some of what is due to Caesar. This is an indirect way to deny Caesar what he deserves. Another bible principle that goes against the actions of Wes are those touching on hard times. Some scriptures quote believers seeking counsel on whether you pay taxes during difficulties and unproductive times such as farming during drought. The response is clear that the law is to apply despite of the difficulties. Wes therefore looks like a thief when he tries to reduce the income tax charged on his orthopaedic surgery by factoring in the losses of the farm. According to the Bible, he should still pay the total amount in full (Nehemiah 5:1-4). 

If the financial positionnismto stay the same for the next four years, Wes has two paths that he could follow. First, he can continue lowering his tax contributions by including the losses incurred in the farm. However, if he were to adhere to biblical principles, he should develop a habit of paying his taxes in full. This second path would cost him more but he would be in correct scriptural adherence. In conclusion, the position adopted by Wes is defensible according to the law but it is unacceptable according to the standards of the Bible. 

References 

Mason, P., Utke, S., " Williams, B. (2018). Why Pay Our Fair Share? How Perceived Influence Over Laws Affects Tax Evasion. 

The Bible. New International Version 

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StudyBounty. (2023, September 17). Taxes For Trade or Business.
https://studybounty.com/taxes-for-trade-or-business-essay

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