Accounting Historians Journal Volume 25 Article 5 Issue 2 December 1998 1998 Development of taxation in the Bible: Improvements in counting, measurement, and computation in the ancient Middle East Manuel L. Jose Charles K. Moore Follow this and additional works at: https://egrove.olemiss.edu/aah_journal Part of the Accounting Commons, and the Taxation Commons Recommended Citation Jose, Manuel L. and Moore, Charles K. (1998) "Development of taxation in the Bible: Improvements in counting, measurement, and computation in the ancient Middle East," Accounting Historians Journal: Vol. 25 : Iss. 2 , Article 5. Available at: https://egrove.olemiss.edu/aah_journal/vol25/iss2/5 This Article is brought to you for free and open access by the Archival Digital Accounting Collection at eGrove. It has been accepted for inclusion in Accounting Historians Journal by an authorized editor of eGrove. For more information, please contact [email protected]. Jose and Moore: Development of taxation in the Bible: Improvements in counting, measurement, and computation in the ancient Middle East Accounting Historians Journal Vol. 25, No. 2 December 1998 Manuel L. Jose LAHN & ASSOCIATES and Charles K. Moore THE UNIVERSITY OF AKRON THE DEVELOPMENT OF TAXATION IN THE BIBLE: IMPROVEMENTS IN COUNTING, MEASUREMENT, AND COMPUTATION IN THE ANCIENT MIDDLE EAST Abstract: This paper traces the development of five taxation types in the Bible — income taxes, property taxes, special assessment taxes, poll taxes (all direct taxes), and indirect taxes. The development of these taxes is discussed within the context of Israel's historical de­ velopment. The impact of counting, measurement, and computation on the development of taxation is also considered. Accounting historians have studied and narrated several ac­ counting concepts mentioned in the Bible. Hagerman [1980, pp. 71-76] observed that many of today's accounting concepts were already in use during Biblical times. Davis [1981, pp. 71- 72] subsequently detailed the first recorded audit in the Bible. In this paper, an effort is made to analyze the development of taxation in the Bible over the many centuries of ancient Israel's existence in light of improvements in counting, measurement, and computation in the Middle East. The Bible contains numerous references to taxation. This paper examines and analyzes the various types and instances of taxes in the Bible in light of political and economic develop­ ments. Sources outside the Bible are also referenced, such as Flavius Josephus [Whiston, 1960], a Jewish historian of the 1st century of the present era, and Schmandt-Besserat [1988]. The term "tax" is characterized more by its involuntary na­ ture than its precise terminology; precise tax terminologies did Submitted August 1995 Revised June 1996 May 1997 October 1997 Accepted November 1997 Published by eGrove, 1998 1 Accounting Historians Journal, Vol. 25 [1998], Iss. 2, Art. 5 64 Accounting Historians Journal, December 1998 not exist in Biblical days. A tax is not a voluntary payment like a charitable contribution. The eminent jurist Learned Hand stated, "... taxes are enforced exactions, not voluntary contri­ butions" [Commr. v. Newman, p. 851]. Webster's New World Dictionary [Guralnik, 1976, p. 1458] lists the following defini­ tions of the noun "tax:" 1. a) a compulsory payment, usually a percentage, levied on income, property value, sales price, etc. for the support of a government; b) a special assessment, as in a society, labor union, etc.; 2. a heavy demand; burden; strain." This distinction between taxes and contributions is clearly indicated in the Bible. Four types of direct taxes or involuntary payments (income taxes, property taxes, special assessment taxes, and poll or capitation taxes) to the governing authorities are mentioned. The Bible also references indirect taxes, such as custom duties or sales taxes. In contrast, contributions which provided for assembly of the tabernacle are discussed as nontax, free-will offerings. This paper is not concerned with modern technical mat­ ters, such as the incidence of taxation on economic layers of society or the justiciability of a tax from the standpoint of hori­ zontal or vertical equity. No discussion is made of exemptions or special stipulations since these do not appear in the Biblical record. For instance, the Bible refers to a 10% tithe, implicitly assuming that it applies to all owners of farmland and livestock. In the theocracy of ancient Israel, tithing in a religious context was the same as taxation in a governmental context. It is impossible to distinguish religious and governmental taxa­ tion since religion and government were one and the same in ancient Israel. Hartman [1963, p. 2395] wrote, "In a strictly theocratic state there is no real distinction between the treasury of the sanctuary and the treasury of the government." The various types of taxation mentioned in the Bible are discussed in the following section. Each of these five types is illustrated by Biblical passages. Subsequently, taxation is exam­ ined chronologically over six consecutive periods of Israel's his­ tory. The reader is referred to Appendix A, where types of taxes and chronological periods are cross-referenced. Primary focus will be on Biblical accounts that illustrate the development of these five types of taxation in ancient Israel. The reason for discussion of sources apart from the Biblical record, such as Flavius Josephus and others, is to introduce the cultures surrounding ancient Israel in terms of their taxation methods, as well as their political and economic development. https://egrove.olemiss.edu/aah_journal/vol25/iss2/5The processes of counting, measurement, and computation in 2 Jose and Moore: Development of taxation in the Bible: Improvements in counting, measurement, and computation in the ancient Middle East Jose and Moore: Taxation in the Bible 65 the Middle East (Iraq, Egypt, and Israel) contribute to the cul­ tural milieu. TAXATION TYPES Income taxes, property taxes, special assessment taxes, and poll taxes are all mentioned in the Bible. Though tax terms, such as rate and base, are not technically discussed in the Bible, the tax attributes indicated by these terms are sufficiently im­ plicit to distinguish these four types of direct taxation. Indirect taxes, such as custom duties or sales taxes, are also mentioned in the Bible. Income Tax: An income tax is a levy based on the income of a person or the yield of property, such as farmland or herds of livestock. Genesis 47:26 mentions such a tax:1 So Joseph established it as law concerning land in Egypt — still in force today — that a fifth of the pro­ duce belongs to Pharaoh . This was a 20% tax on the yield of property, a precursor to a government-imposed income tax. Other parties have also typi­ fied a levy based on property yield as an income tax. One au­ thor referred to this Egyptian practice as follows, "Agricultural production was taxed at a hefty 20%. This was . exactly like our income tax" [Adams, 1993, p. 3]. After the Hebrews left Egypt, the rate was dropped to 10%, the tithe rate [Leviticus 27:32]: The entire tithe of the herd and flock — every tenth animal that passes under the shepherd's rod — will be holy to the Lord. However, the reduction was actually less since the Hebrews were commanded to present their "firstfruits" to the priests, as mentioned in Deuteronomy 18:3-5: This is the share due the priests from the people who sacrifice a bull or a sheep: the shoulder, the jowls and the inner parts. You are to give them the firstfruits of your grain, new wine and oil, and the first wool from the shearing of your sheep, for the Lord your God has chosen them and their descendants out of all your tribes to stand and minister in the Lord's name always. 1Unless otherwise stated, all Biblical references are from the New Interna­ tional Version of The Holy Bible. KJV denotes The Holy Bible, King James Ver­ Publishedsion. by eGrove, 1998 3 Accounting Historians Journal, Vol. 25 [1998], Iss. 2, Art. 5 66 Accounting Historians Journal, December 1998 One observer classified these obligatory payments as taxes even though a percentage is not stated [Oden, 1984, p. 169]. For purposes of this paper, "firstfruits" are grouped with tithes as income taxes in that their amount would presumably have been a function of the total amount of agricultural production. Property Tax: Valuation of personal or real property is the basis for an assessment of a property tax. II Kings 23:35 discusses the property tax: Jehoiakim paid Pharaoh Neco the silver and gold he demanded. In order to do so, he taxed the land and exacted the silver and gold from the people of the land according to their assessments. The phrase, "he taxed the land," should not be construed as a tax on the people. The tax object was the land, although the owners of the land were paying the tax. A literal word-for-word translation of the relevant Hebrew text is [II Kings 23:35]: And the silver and gold gave Yehoiakim to Pharaoh. But he [Yehoiakim] taxed the land to give the money according to Pharaoh; each man according to his taxa­ tion he exacted the silver and the gold of the people of the land to give to Pharaoh Neco. Note is made of the difference between the income tax and this property tax. The former was based on the increase or yield of property, whereas the latter was a function of the value of prop­ erty. Since it was related to value, increase or yield was imma­ terial. Special Assessment Tax: A special assessment tax is a tax levied to raise revenue for specific projects. II Chronicles 24:5 men­ tions a special assessment tax: He called together the priests and Levites and said to them, 'Go to the towns of Judah and collect the money due annually from all Israel, to repair the temple of your God .