The Tax Revolt

by Rev. Mmoja Ajabu Published in BRIGHT LIGHT NEWS 8/10/07

Minister of Social Concerns

Light of the World Christian Church 

It is common knowledge that Indiana's tax system, and particularly its increases and affect on Marion County have caused a tax revolt. As an old country preacher, the book that guides my life says render under Caesar what is Caesar's and render under to God's what is God's. Caesar is the Bible's way of defining government. Sales tax and income taxes are Caesar's because government brought into existence the items sold and the wages made. However, Caesar did not produce any land. Land was produced by God. For Caesar to tax our property is to take from God that which is God's. A home buyer can pay off his/her home's mortgage to the lending institution and still not be a home owner. If the home buyer does not pay the property tax then the government comes and takes the property. I say taxes should support property ownership. Caesar should not be able to take what has been given by God. The question is how to fix this ungodly situation.

I propose the following. Abolish the property tax. So as not to put the city in further financial straits, which is not anyone's desire, I say replace the revenue lost from abolishing property taxes with sales and income taxes. Here's how.

Dr. Craig Johnson of Indiana University's department of Public & Environmental Affairs says "the Property Tax Replacement Study Commission (November 2004), reported a sales tax rate of 13.4% would replace 100% of the net property tax levy (this is a FY2006 figure). The problem with the sales tax is that it's very regressive, i.e. lower-income people get hit harder by the tax than higher income people. But the state could provide a tax credit to low income people to reduce their tax burden and make the tax less regressive."

Dr. Johnson feels a better solution would be "a combination of increased sales and income taxes. If you replaced 100% of the net property tax levy with the same amount of sales and income tax revenue, it would require raising the sales tax rate to 9.6% and the income tax rate to 5.7%."

I like the idea with just a little tweaking. I say eradicate property taxes for home owners but not commercial entities. I take this position because businesses make profit off of their property, where homeowners pay expenses. Taxing commercial property would give the taxation revenue some stability and allow for the proposed 9.6% sales tax rate to be shifted lower. According to Bill Crawford, Chairman of House Ways & Means Committee, commercial entities comprise 52% of Marion County's tax base. Commercial property taxes would help to minimize tax income fluctuation.

Likewise I would keep the income tax in its graduated form so those who make more income pay more taxes. I say let's get Caesar out of God's business.

You may write to Rev. Ajabu using the form, or to:

Light of the World Christian Church

4646 Michigan Road

Indianapolis, IN 46228.