The most fundamental requirement of citizens in a democracy is payment of taxes due. Much of the reason Greece is in such dire economic straits is widespread tax evasion. As people often resent paying for services that others get for “free,” tax evasion is most contagious, as otherwise honest people tend to join in cheating the system.

For Jews our civic duties are part of our religious obligations such that evading taxes is a violation not only of Canadian law but also of the laws of the Torah. Approximately 1,800 years ago the great talmudic sage, Shmuel (he was not ordained as a rabbi), formulated the religious principle that dina d’malchuta dina – the law of the land is the law. This was promulgated when taxes went to the “king’s” coffers and not for public services. Nonetheless, a Jew was required to pay taxes irrespective of how the money was spent. 

In a democracy, tax evasion is much more serious, as it involves stealing from the public. This stealing directly impacts on the quality of our lives, as evaded taxes cannot pay for education, health care, the military, research and development, arts and culture. Furthermore, those who cheat cause tax rates to be higher than they otherwise would be, thereby lowering the standard of living and curtailing consumer spending – the lifeblood of the economy.

I imagine many might be thinking that such a statement is going overboard, that such is the nature of democracy, and that since the problem can’t really be solved, why fret over it? A recent report by the Taub Center for Social Policy Studies in Israel, should make us think again about the impact my “two cents” may have. They estimate that the underground economy represents approximately 20 per cent of the gross domestic product of Israel, twice the level of the United States. If this illegal and immoral economic activity could be cut in half, government revenue would increase by between 30 and 40 billion shekels, somewhere in the neighbourhood of $10 to 13 billion (Cdn).

Statistics Canada estimates that the underground economy here represents 2.3 per cent of GDP. While that seems trifling – and compared to Israel, it is – it represents a minimum of $15 billion of lost tax revenue. That is quite a bit of money for our political leaders to dangle before us in new programming or tax cuts as they vie for our votes in the upcoming election.

When one considers the huge budget fights in Israel, especially as they pertain to defence spending, tax evasion literally places the lives of Israelis and by extension Jews everywhere in danger. That is something to think about as you plan your next trip to Israel.

One of the unresolved and lingering debates in Israel regards the role Judaism can and should play in public life. As an Orthodox rabbi, I will state unequivocally that from a Torah perspective, ensuring our money is kosher is far more important than any food we may or may not eat. Israel would be a far more “religious” (can I say Jewish?) state if buses ran on Shabbat, soldiers could opt for non-kosher food, businesses operated on Shabbat, but all were able to answer with a resounding “yes” the question our sages teach will be the first we will be asked by God when our sojourn on this earth ends:“Were your business dealings conducted faithfully?” And this question applies whether one lives in Israel, Canada or, for that matter, Turkey.

Isaiah, the prophet of redemption, demands that the Jewish People be a “light unto the nations.” He was not referring to our level of observance of Shabbat, kashrut and holidays when he proclaimed such. Rather he was referring to our integrity, compassion, sense of justice and sensitivity. As Isaiah himself says, “Zion shall be redeemed through justice and they that return with her with righteousness.” These words are just as true today, if not more so, than they were when first uttered over 2,600 years ago. 

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