Tax resistance in the “Peace Churches” →
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Shirley Whiteside
Your tax resistance news round-up
The third war tax resistance podcast, sponsored by the War Tax Talk blog, features war tax resisters Shirley Whiteside, Juanita Nelson, Randy Kehler, Betty Winkler, and Beth Seberger sharing the fruits of their experience.
“Tax evasion” has a bad reputation because governments have successfully convinced people that paying taxes is of public benefit, and that those who dodge their share reap these benefits while pushing the burden off on others.
But there are a lot of assumptions packaged in with that story that don’t hold up under scrutiny.
Under a more realistic set of assumptions about the nature of public spending and taxation, tax dodging is an important public service that benefits all of us by limiting the invasiveness of government.
The scam in which callers impersonating IRS agents trick people into sending them money to settle spurious tax debts continues to grow.
According to the latest news:
When the law enforcement agency that oversees the Internal Revenue Service warned in of the “largest-ever phone fraud scam targeting taxpayers,” it did not realize the 20,000 victims would be just the tip of a growing iceberg.
As of , close to 300,000 consumers have reported to the Treasury Inspector General for Taxpayer Administration, or TIGTA for short, that they’ve been contacted by callers claiming to be from the IRS.
As we head into tax season in 2015, 12,000 people are complaining to TIGTA about the IRS impersonation scam every single week.
At least $14 million have been reported to be extorted by criminals, and the actual number may be twice that high.
The tax resistance movement that’s sprouting from the Occupy Central / Umbrella Movement in Hong Kong continues to seek guidance from tax resistance campaigns around the world.
In the latest example, they look to Julia “Butterfly” Hill’s enormous war tax redirection action for inspiration.
The Italian tax resistance movement growing under the hashtag “#IoNonMiAmmazzo” now has a rap video to dramatize its campaign:
While I’ve been delving through the archives of Gospel Herald, links have been backing up in my bookmarks.
Here are some that concern war tax resistance in the here-and-now:
The Trump administration has decided it enjoys provoking trade wars, which perhaps have the blessing of distracting them from getting their jollies by provoking real wars.
But the prime mechanism — tariffs — is also a revenue source for the government.
Which leads war tax resisters like Lincoln Rice to ask, are these tariffs for war? and if so, what can war tax resisters do about it?
Thirty-Eight Years of Refusal — Erica Leigh, Georgia Pearson, Larry Bassett, and Bill Ramsey review the history of the recently-closed Conscience and Military Campaign Escrow Account, which was responsible for coordinating tens of thousands of dollars in war tax redirection.
Counseling Notes — News about government policies towards war tax resisters, including the use of private debt collectors, IRS summonses, passport revocations, and a sharp decline in levies.
Colrain After 25 Years — A 25th Anniversary celebration of the actions surrounding the Corner/Kehler house seizure, coinciding with the New England Regional Gathering of War Tax Resisters.
War Tax Resistance Ideas and Actions — Including the Maine War Tax Resistance Gathering, and obituary notices for war tax resisters Ray Gingerich and Naomi Paz Greenberg.
NWTRCC News — Including an announcement of the NWTRCC national gathering in Cleveland.
Adrienne Maree Brown writes about her war tax resistance in the wake of a wage levy, and reflects on the disadvantages of going it alone as opposed to resisting as part of a supportive group. Excerpt:
i still deeply agree with the politics that led to this action, but i know now that i didn’t do it the right way.
i acted as an individual, as if my singular act of rage should be respected, as if it could have meaningful impact on the systems of oppression that lead to the military spending i want to divest from.
it helped me sleep well at night, but it wasn’t tied into a collective strategy, a system of accountability around whether it was effective.
someday i hope to be part of larger direct action efforts around debt and taxes, but from this struggle i have learned in a most personal way the importance of the collective.
Is there a war tax resistance movement?
According to a pseudonymous author in a back issue of Conscience (the newsletter of the Conscience and Military Tax Campaign), “War tax resistance is real, but the war tax resistance movement is fiction.”
War tax resistance is a tactic, says the author, whereas movements coalesce around goals, so there will never be a war tax resistance movement, though there may be movements that incorporate war tax resistance.
Erica Leigh looks back at the Beit Sahour tax strike as it was covered at the time, in a two-part series of excerpts from Conscience (part 1 and part 2).
Leigh writes: “The tax resistance in Beit Sahour was due to a high level of community cohesion, organization, education, and solidarity, something that’s missing from our scattered war tax resistance organizing around the United States.
Most of our finest moments in US war tax resistance arose from such concentrated and dedicated efforts in a small geographic region, even when the total number of resisters was small.
Food for thought!”
In , Brethren churches had to make tough choices of how far to go to support their war tax resisting pastors in battles with the government.
At the Annual Conference , the Church approved a position paper recommending that congregations consider civil disobedience in such cases.
The issue of Messenger reported on how, in the wake of a discouraging Supreme Court decision in an unrelated case, “[t]he General Conference Mennonite Church has put on hold a war tax lawsuit against the Internal Revenue Service.” (source)
, the magazine reported on a Brethren congregation that struggled to decide how far to go to support a war tax resisting pastor:
After agonizing debate.
Prince of Peace Church of the Brethren, South Bend, Ind., voted to comply with an order to pay the Internal Revenue Service part of the wages of pastor Louise Rieman, a war tax resister.
Prince of Peace is the first Church of the Brethren congregation to be faced with the tax-resistance issue.
Louise Rieman and her husband, Phil, have been withholding a percentage of their taxes to protest military spending, and have also withheld information about bank accounts from which the IRS could take tax money.
When the church was asked to hand over part of her wages, the Riemans asked the church board to refuse.
The board passed a resolution that supported the Riemans and denied the IRS request.
But the resolution was defeated 20 to 16 when it was sent to the church council for consideration by the entire congregation.
The debate focused on the biblical basis for and against tax resistance, the moral implications of breaking the law, and preservation of the congregation amidst the controversy.
, in response to a Northern Indiana District query, Annual Conference formed a committee to study war tax resistance.
A report is expected at the conference in Baltimore.
An Oregon congregation, however, decided to take a stronger stand (from the issue):
Peace Church of the Brethren, in Portland, Ore., has voted unanimously to refuse to comply with an Internal Revenue Service effort to collect war taxes owed by pastor Rick Ukena.
The congregation also voted to issue a public statement explaining the decision, and to raise funds to pay any fine arising from noncompliance with the IRS.
Ukena and his wife, Twyla Wallace, have withheld taxes , and the government has seized the money each of those years.
IRS actions against war tax protesters have become speedier and more severe under the Reagan Administration, and this year a levy was imposed against the church.
After a committee explored alternatives with an attorney and with Chuck Boyer, Church of the Brethren peace consultant, a special congregational meeting was held to consider the options.
“Most inspiring was the way the church took it on without my insistence,” said Ukena.
“People were really trying to discern the Spirit.”
Earlier this year, Prince of Peace church in South Bend, Ind., voted to comply with an IRS order regarding pastor Louise Rieman (see [above]).
Ukena was a conscientious objector in and says tax resistance has become a way of life for him.
“I would encourage people to not take the action,” he cautioned, “unless they’re aware of what they’re doing.”
“It was a really scary decision at first,” he added.
“We really prayed and talked to others and read the Bible to determine what was right.
It’s nice to fear God more than the IRS.”
Shirley Whiteside wrote in to applaud the Peace Church’s stand (source):
I rejoice to see this kind of integrity supported within the church.
I hope that one day the greater church will realize our hypocrisy.
To officially proclaim “All war is sin,” while we are party to war with no visible resistance, decries our loyalty to the gospel we claim.
At the Annual Conference, the Church of the Brethren decided whether or not to take a stronger stand that might include corporate civil disobedience.
By a supermajority, they voted to do so:
What started out at the Annual Conference as a study on war tax resistance came out of the Conference as a position paper.
The job of the study committee on war tax consultation was to answer the basic question of how an institution should respond to employees who object to payment of the part of their taxes that goes for military support, said Phillip Stone, General Board member and chairman of the committee.
In its list of recommendations, the committee suggested that “congregations and church-related institutions give consideration to a range of extra-legal options.”
Included is the option of corporate civil disobedience by supporting an employee involved in war tax resistance.
Moderator Paul Hoffman said that by recommending civil disobedience the study paper became a position paper, and needed a two-thirds majority — which it did receive from the delegate body.
Preceding the listing of extra-legal options was a listing of legal means by which institutions could support employees involved in tax resistance.
The committee stated that only after legal means were exhausted should an institution enter into civil disobedience.
In conclusion, the committee called on the larger church community to give support to any church-related organization involved in civil disobedience.
This statement is conspicuously absent from the Church of the Brethren Resolutions & Statements listed on the official Annual Conference website today.
I’m not sure how to explain that.
Maybe we’ll find out as I continue to hunt through the archives.
We need to name the huge expenditures for weapons for what it is, blasphemy against the goodness of God’s creation, a sin we commit together.
In light of this reality I would like to pass on a suggestion from the New Call to Peacemaking Conference at Elizabethtown College :
Instead of focusing on the division between those who pay and those who resist war taxes, let’s all join together in witnessing against war taxes even though we do this in different ways.
Some will witness to people in government through letters accompanying or sent concurrently with their tax payment and returns.
Some will reduce their income or increase their giving in ways as to decrease or eliminate war taxes.
Some who pay under protest will support by word and deed brothers and sisters who withhold a portion or all of their taxes.
Some of us will continue to witness our strong concern through withholding monies in civil disobedience to the tax laws.
This attitude and these actions are consistent with our Annual Conference decisions on this issue.
The issue reported on the war tax resistance debate as it was taking place in the General Conference Mennonite Church (source), and the issue followed up with a report of Church employees who had asked the church to stop withholding war taxes from their salaries (source).
Another news brief in the issue described the World Peace Tax Fund as a bill that “would amend the Internal Revenue Service Code so that conscientious objectors could have their tax payments spent for nonmilitary purposes,” and reported on lobbying efforts.
The issue gave another example of corporate tax resistance in the Church of the Brethren:
The Michigan District board has instructed its district personnel to withhold the Federal excise tax on district telephone bills.
It is forwarding the resolution to the Internal Revenue Service and to congressional representatives.
The withheld funds will be redirected to a Michigan District Peace Tax Fund and used by the district witness commission.
The action was based on Annual Conference statements of , , and .
The board “commend(s) this witness to all Brethren, local congregations, the General Board, and Annual Conference for their study and prayerful consideration,” and also encourages other forms of witness, such as lobbying for the World Peace Tax Fund Bill.
A profile of Brethren Volunteer Service volunteers Steve & Sue Williams in the issue included this detail:
Another attraction to volunteer service for the Williamses was their desire not to pay taxes for war purposes.
Before they married, Steve was a tax resister, withholding a certain amount of money as a protest against the government’s using his taxes for the military.
But Sue was uncomfortable with tax resistance and, after they married, they began looking for an alternative.
One was simply to make a lot of donations to charity.
“Before BVS we were working full-time and giving a lot of money away,” Steve said.
“We began looking for a way to give away time and not money.”
I also found this article in The Morning News of Wilmington, Delaware (). Excerpt:
Brethren still withholding taxes
How to protest “sin of war” is on denomination’s conference agenda
by Eileen C. Spraker and Stephanie Whyche Staff reporters
In , the Vietnam War sparked members of the Wilmington Church of the Brethren not to pay the church’s federal telephone excise tax for a year.
Although that war is dead, tax-withholding among members of the Church of the Brethren is very much alive.
How to support Brethren institutions and individuals who choose to withhold “war taxes” will be on the denomination’s agenda during their national conference, which opens in Baltimore.
Traditionally, the denomination has held to the belief that all war is sin.
Brethren 35 years ago established the Brethren Volunteer Service for conscientious objectors as an alternative to military service.
Some members of the church, for reasons of conscience, have chosen to withhold part or all of their taxes to avoid supporting the military.
A paper to be presented at the Baltimore meeting will discuss the lawful choices available to such people, the church’s position on civil disobedience, and support for institutions and people pursuing tax resistance.
“This is one of the most timely issues we have right now,” says the Rev. Allen T. Hansell, pastor of the Wilmington Church for the Brethren.
According to Hansell, some employees of the six Brethren Colleges and employees in at least one of the Brethren retirement homes are currently involved in tax resistance efforts.
But some are less than successful because their employers are withholding taxes from their employees’ pay in accordance with regulations.
“The issue is these employees, on the basis of conscience, don’t want this money withheld.
Legally, the employers are bound.
That’s why this issue is coming before the conference,” Hansell said.
What’s more, Hansell said, although there’s “no war right now, the telephone excise tax continues,” even though Congress promised to discontinue it once the Vietnam war had ended.
During the Vietnam War, members of Hansell’s church, in Richardson Park, stirred up a lot of controversy because they refused to pay the church’s federal telephone-excise tax.
The action was because of their belief that part of the tax was financing the war.
“Our concern was to make a witness of the issue that this money was going directly to the war effort,” Hansell said.
“It was a matter of principle.”
The proposal to be presented before the conference calls upon employers of employees involved in military tax-resistance efforts to take the issue seriously and maintain open dialogue with their employees.
It does not recommend that church institutions get involved in tax resistance efforts, but if they do, it calls upon the denomination to support that effort through such methods as legal assistance.
Other recommendations will suggest that Brethren seek voluntary wage reductions, and that they work with the Mennonites and Society of Friends to bring about changes through legislation.
Anabaptist World features a letter from Harold A. Penner urging Mennonites to redirect their war taxes to the Mennonite Church USA Peace Tax Fund.
And here is some more news about the ongoing troubles at the IRS.
This CNN Business story goes in some depth into how a loose coalition of activists forced the IRS into an embarrassing and costly retreat from its plan to use facial recognition technology to verify the identity of taxpayers using its online account portal.
This note from the National Taxpayer Advocate gives more details about the IRS plan to stop issuing certain enforcement action notices while it tries to deal with the enormous backlog of unprocessed returns and other correspondence.
For example: “If a taxpayer’s account has been assigned to one of the IRS’s automated levy programs (ALPs), the IRS is also suspending the levies made by those programs…”
The agency will also not be able to pursue many new levies because in order to do so, it must first send the taxpayer a letter informing them of their right to request a Collection Due Process hearing, and they’ve temporarily stopped the automatic sending of those letters.
Some 53,000 IRS employees are still on remote work — about two-thirds of the agency’s workforce, which an IRS spokesperson characterized as “a maximized telework posture.”
But privacy rules prevent remote processing of the millions of paper tax returns mailed to the IRS, as well as the examination of returns with discrepancies from IRS records, the issuance of refunds and dealing with other taxpayer mail.
The Transactional Records Access Clearinghouse at Syracuse University issued a report showing that the IRS audits the poorest American households at five times the rate as the rest.
This seems to be an effect of the agency’s plummeting rate of audits of the well-to-do combined with its increasing use of cheap-and-easy “correspondence audits” against low-income taxpayers who apply for the Earned Income Tax Credit.
As the National Taxpayer Advocate puts it:
The IRS correspondence audit process is structured to expend the least amount of resources to conduct the largest number of examinations — resulting in the lowest level of customer service to taxpayers having the greatest need for assistance.
Last Summer, the U.S. House of Representatives passed a spending bill that would have boosted the IRS budget.
That bill got bogged down in Congress before anything could come of it.
A recent appropriations bill resurrected the IRS budget boost, but pared it way back, so now the agency budget will only rise by 6%.
These days that’s hardly enough to keep up with inflation.
And the appropriations bill restricts how various parts of the increase can be spent, so some parts of the agency budget — tax enforcement for example — will see even smaller increases.
