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GIVE and TAKE word on real white speech bubble paper cut transfer arrow on yellow background,  Business give , charity, knowhow,  take concept

This week’s Parsha discusses the building of the Mishkan and begins where every good Jewish project needs to start — fundraising.The Torah uses rather peculiar language when giving the commandment: “take for Me a donation.” Surely it should say “give” a donation, not take?The Ibn Ezra brings examples from various places in Tanach showing that the words “give” and “take” are sometimes used interchangeably.The Netziv points out that the commandment was directed primarily at the leadership of the community, from Moshe downward, to organize the collections. They were commanded to encourage — and, when necessary, even compel — the masses to contribute what was needed for the Mishkan.The Brisker Rav goes so far as to say that there was no obligation on the individual to donate at all. Rather, there was an obligation that the Mishkan be built, and it fell upon the community collectively to ensure that this goal was achieved. Whoever was inspired by the cause and chose to contribute did so as a personal merit.Most tax systems are not so forgiving. Not only is each individual expected to pay their own liabilities, but — as many first-timers are surprised to learn — the responsibility for calculating that liability rests on them as well. Some people say that if the government wants their money, it should come and get it. Unfortunately, that’s not how things work. Citizens are legally obligated to report their income and pay their liabilities.Additionally, there is often disappointment that the money is spent on things not quite as lofty as the Mishkan.For any Mishkan related or other financial issues you require assistance with please reach out at aharon@goldwaterfs.co.il. Good Shabbos.

Terumah 5786 – Give & Take

Close-up of the poor or homeless Homeless people ask for money in public. The poor beggar in the city sat on the stairs with a silver mug.

It has long been understood in many countries that the tax system should be built in a way that the wealthier pay more tax — that those with the broadest shoulders should carry the greatest burden. This is done by increasing the percentage tax rate as the level of income rises. However, this creates a backlash in that it disincentivizes people from earning more money, as the extra effort is proportionally taxed at a higher rate.In Israel, the top 20% of earners paid 80% of the income tax last year. Similar ratios exist in other Western countries.In this week’s Parsha, judges are warned to judge poor and rich alike: “Do not show favoritism to a poor person in judgment” (23:3).Rashi explains that a judge should not rationalize that the rich person is obligated to support the poor person anyway through charity. Surely it would be better for the poor person to receive his funds through a legal ruling rather than have to ask for handouts.Rav Samson Raphael Hirsch goes further in explaining why this potential rationalization is wrong. Dignity for the poor person is not achieved through handouts, even if they come via a legal mechanism. The greatest honour and pride society can give an individual is to treat him as worthy and equal before the law. This poor person may be financially struggling, but the courts must not cut corners for him. Lowering the bar for him would only diminish his own sense of self-respect. There could be no greater damage.Tax systems should encourage people to be increasingly productive and ultimately turn takers into givers. It is what is best for both the individual and society as a whole.For any handout related or other financial issues you require assistance with please reach out at aharon@goldwaterfs.co.il. Good Shabbos.

Mishpatim 5786 – Tax the Poor

They say delegation is the art of leadership.The Jewish people have had some truly great leaders throughout our illustrious history, none more so than Moshe Rabeinu. This leads many commentators to be baffled by Moshe’s seeming lack of foresight in this week’s Parsha. Why did he need Yisro’s advice to create a system of judges and delegate simpler cases to lower-ranking circuits? How could he have missed such a basic point?The Abarbanel quotes “those who say” that Moshe was too caught up in his prophecies to pay attention to mundane matters such as the logistics of a court system. He rejects this suggestion as unacceptably degrading to Moshe.He proposes a far more sophisticated approach. There has been much debate, from the Gemoro onwards, regarding the chronology of this week’s Parsha. When did Yisro come to the Bnei Yisrael in the desert—before or after Matan Torah? One of the central issues in this discussion is: what laws was Moshe judging the people by? He could not have judged based on Torah law before the Torah was given.The Abarbanel says that Yisro came before Matan Torah. Moshe was not judging based on Torah laws, but rather on the general commandment to judge fairly, received at Mara. This commandment did not come with strict guidelines, but rather a broad-stroke approach of fairness and equity. Moshe realized that it would be impossible to delegate such a system of laws to lower judges. Who decides what is fair? He understood that any case could simply be deemed legitimate to escalate to the highest authority. When there are no clear guidelines, everything is grey, and every matter is open to dispute.Yisro saw that this was unsustainable, even in the short term, due to the personal toll on Moshe, and therefore advised an immediate adjustment.Both Israel and the USA have court systems ultimately headed by a Supreme Court. However, there is a major difference between the two systems. The USA is a relatively older country with a far larger population. Its laws have been written, tested, and refined, and therefore have an extremely solid foundation and systemization. Israel, by contrast, is a young country still developing its systems. The tax code and legal system contain large amounts of ambiguity and interpretation.This explains why, per capita, Israelis are over seven times more likely to file a petition to the Supreme Court than Americans. One wonders what Yisro would think of this.For any court related or other financial issues you require assistance with please reach out at aharon@goldwaterfs.co.il. Good Shabbos.

Yisro 5786 – Rules are Rules

There is something special not happening this Shabbos.Living in Israel comes with many small joys, and one of them is how Shabbos and Jewish holidays are largely observed and even legally recognized. For example, there’s a rule that if a tax deadline falls on a Friday or Shabbos, it’s simply pushed to the following Sunday. This year, the end-of-January deadline for 10% rental payments and Osek Patur declarations falls on the weekend, so it will be on February 1st instead.In Parshas Bereishis, we’re told that Shabbos is “blessed and made holy.” Rashi explains that it was blessed because of the double portion of Manna given on Friday, and made holy because there was no Manna on Shabbos itself.The Ramban asks a thoughtful question: why would the Torah describe Shabbos in reference to something that only happened for a short time in history? The Manna was around for just 40 years while the Bnei Yisroel wandered in the desert. What about the thousands of years before and after—what made Shabbos “blessed and holy” then?The Maharal in Gur Aryeh offers a beautiful answer: the Manna wasn’t what made Shabbos holy; it was a reflection of its inherent holiness. Shabbos is intrinsically blessed and sacred. As we sing in Lecha Dodi, it is a source of blessing. One sign of that blessing is that we are never left lacking, even when we refrain from work. Through the gift of the Manna—and through every generation—Hashem reminds us: deadline or no deadline, you don’t need to worry.For any deadline related or other financial issues you require assistance with please reach out, not on Shabbos, at aharon@goldwaterfs.co.il.Good Shabbos.

Beshalach 5786 – Ain’t Gonna Tax on Saturday

When does the Tax year begin and end?For Americans and Israelis, this is a strange question because the tax year is simply the calendar year. They report their taxes from January 1st through December 31st. However, in many countries, it’s not so straightforward—each has its own reasons.The UK runs from April 6th to April 5th. This dates back to when New Year’s Day was celebrated on March 25th, known as “Lady Day” for Christian reasons beyond the scope of a Torah and Taxes blog. In 1752, when the UK switched from the Julian to the Gregorian calendar, the date moved 11 days forward to April 6th to correct the calculation error caused by the imperfect Julian system. Anyone born between September 2nd and 14th missed their birthday that year. Ever since, the British have been too stuck in their ways to change it.India, even while part of the British Empire, managed to shift the start of the year to April 1st to align with the agricultural season. Australians, in a more rebellious move, ditched the British system entirely in the early 1900s and replaced it with July 1st.The first Mitzvah the Jewish people were commanded was given even before they left Egypt: setting the Jewish calendar, beginning with the month of Nissan. Why does Nissan have to be the first month?The Ramban explains that time is always relative to what is important. There must be a reference point to look forward to or back at. The days of the week are numbered building up to Shabbos. The months of the year are counted from the Exodus from Egypt. This structures the calendar around focal points that influence our mindset and values.The Sforno adds another dimension. The most valuable asset a free person has—which a slave does not—is time. A slave is not the master of his own time; the master decides what is to be done and when. A free person, however, can choose their tasks and how they wish to devote their time. The Exodus marked the beginning of the Jewish people’s journey into living life by their own decisions, masters of their own time. How they spent it was entirely up to them—for good or for bad.For any yearly related filings or other financial issues you require assistance with please reach out at aharon@goldwaterfs.co.il.Good Shabbos.

Bo 5786 – The Torah’s Tax Year

Border disputes are nothing new and are critical in determining jurisdictions for taxation. In 2022, the deal to resolve the maritime border between Israel and Lebanon opened up natural gas reserves for both countries, leading to billions of shekels in tax revenue for Israel.Many years ago, Egypt and Ethiopia were involved in a border dispute of their own, each claiming land and natural resources that could be taxed for the good of the country.Then came the frogs. As the Passuk (27:7) says, the frogs only went within the land of Egypt. The Midrash (Shemos Rabbah 10:2) comments that this fact proved useful in determining the exact land border between Egypt and Ethiopia, ending a long-standing dispute.However, the Midrash (Shemos Rabbah 13:5) makes the exact same comment in next week’s Parsha regarding the locusts. The locusts also stayed strictly within Egyptian territory, enabling the determination of Egypt’s borders.The question is obvious: surely this issue had already been resolved by the frogs?The Chebina Rov said that all the border posts were knocked down by the hail, so they were back to square one.This question was posed to Rav Chaim Kanievski, who gave his typical insightful and concise reply: “There’s no stopping Ba’alei Machlokes.” The Egyptians and their neighbours weren’t interested in resolving their issues and moving on toward a peaceful relationship for the good of everybody. No amount of miracles was going to help.For any frog related or other financial issues you require assistance with please reach out at aharon@goldwaterfs.co.il.Good Shabbos.

Torah & Taxes Blog

Terumah 5786 – Give & Take

Mishpatim 5786 – Tax the Poor

Yisro 5786 – Rules are Rules

Beshalach 5786 – Ain’t Gonna Tax on Saturday

Bo 5786 – The Torah’s Tax Year

Vaeira 5786 – Frogs were Taxing everywhere