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Thursday, January 14, 2010

Rendering Unto Caesar

Here's an ethical problem for our readers to ponder:

A businessman tells a customer that if the customer pays cash for the service he has been provided the businessman will not charge him tax. If the customer pays with a check or credit card the businessman has to charge the tax. Suppose the tax would amount to a significant sum - let's say $100.

Is the customer morally obligated to pay the tax whether he can avoid it or not? Is it wrong for the customer to pay cash in order to avoid the tax? If he would have paid cash in any event should he also volunteer to pay the $100 tax? Can he rightfully justify avoiding the tax by arguing to himself that he will use that $100 to purchase other goods from other merchants that will help them stay in business whereas the state will simply squander the money, perhaps even using it to line the pockets of legislators?

I welcome your responses to these questions, but please include the reasons which support your judgment.

RLC