In Biblical times, the economy was based on an agrarian society and the tithe came in the form of herds, flocks, and produce. Since most of us don't have herds and flocks to tithe, (and I'm not sure what our pastors would do with them if we did), we need to apply the principles found in Scripture to our situation today.
Let's start by using John and Sue Smith (not their real names) as an example. They have been married for 15 years and have five children ranging in age from 3 to 11 years. John is a salesman for a small company that manufactures electronic components with gross wages of $4,000 per month. Sue is at home full time, but utilizes her accounting back- ground to complete tax returns on a part time basis adding another $400 per month in gross wages. In addition to their wages, the Smiths receive interest income on their savings and dividend income on their investments. A summary of their annual income looks like this:
John's wages $48,000
Sue's wages 4,800
Interest income 3,000
Divided income 1,000
Gross income $56,800
Taxes on their income are as follows:
Federal income $8,000
State income 2,500
FICA 4,300
Other payroll 400
Total taxes $15,200
Net Income $40,300
Tithe @ 10% $4,030
Much of the debate about computing the tithe revolves around whether the amount should be based on gross or net earnings. Scripture gives us the principle of tithing on our increase (Deuteronomy 14:22) so the question is what is meant by "our increase." One suggestion would be to use "net incomes" as a minimum standard. This is reasonable, since taxes are not a part of your increase. However, as you see the blessings that tithing brings and realize that God can't be outdone in generosity, don't be surprised if your hearts are moved to share even more.
Another important principle found in scripture is that the tithe is to come from the first fruits (Deuteronomy 18:4). In order to follow this principle your tithe should be the first "bill" you pay after receiving your paycheck. The symbolism of this action is a key to keeping God first in our lives.
In future issues we will discuss how to determine who deserves to receive your tithe; but for now, one suggested allocation is that 40% be given to your parish and the remainder be donated to other worthy organizations.
God bless you as you strive to apply godly principles to your family finances.
Phil Lenahan has a bachelor's degree in business administration and accounting. For five years he worked with the Arthur Anderson accounting firm. For the past seven years he has worked as the comptroller for Fleetwood Enterprises. Phil and his wife, Chelsey, have been married for eleven years. They are the parents of four children. |
