Friday, June 25, 2004

The “Kosher Tax” Fraud

By Rabbi Yaakov Luban

 

Recently, an e-mail diatribe about the so-called “Kosher

Tax” has been widely disseminated through the Internet.

Various racist and anti-Semitic right-wing extremist

groups, such as the Ku Klux Klan, have circulated this

misinformation for decades.  Today, these fraudulent

claims have been co-opted by terrorist organizations as

well.  The allegations are total nonsense and a complete

distortion of the truth.

 

The “Kosher Tax” memo is patterned after other class-

ical anti-Semitic works, such as the “Secret Annals of

the Protocols of Zion”.  Both the “Protocols of Zion”

and the “Kosher Tax” plant seeds of fear by suggesting

there is a secret Jewish conspiracy spearheaded by a

small group of Jews who wield enormous influence over

world affairs.  The “Kosher Tax” makes the ludicrous

accusation that a powerful syndicate of Rabbis extorts

exorbitant fees from food manufacturers by threatening

a crippling boycott of companies who do not comply.

These “blackmail” fees are passed on to the unsuspec-

ting consumer in the way of higher food charges.

 

The reality is that food manufacturers voluntarily seek

kosher certification as an important and effective

marketing tool. A kosher symbol signals that the product

is suitable for consumption by Jews, Moslems, Seventh

Day Adventists and lactose intolerant individuals, all

who have special dietary requirements.  In addition,

many consumers view the kosher symbol as an indepen-

dent verification of quality.

 

The retail cost of a food product is generally not

increased by kosher supervision.  The decision to seek

kosher certification is based on market research and an

evaluation that it is in the company’s best financial

interest to enter into a supervisory program. The modest

cost associated with kosher supervision is a miniscule

fraction of the total production expenditure, and is offset

by the often-significant increase in profit resulting from

expanded sales. In addition, many production and distri-

bution costs are fixed. When the volume of sales

increases, the overhead cost per unit decreases. The

bottom line is that kosher supervision brings in greater

revenue, and allows companies to reduce the price of

their wares, if they so desire.

 

The Orthodox Union, the largest supervisory agency, is

a non-profit organization, which provides kosher super-

vision as a service to consumers.  The revenue generated

by the certification program is used to cover supervisory

costs, as well as support a wide range of social services.

 

The current dissemination of the “Kosher Tax” lie ref-

lects once again that those who seek to achieve evil

goals through the use of terror are neither bound by

truth, integrity or moral values.

 

Rabbi Yaakov Luban is Executive Rabbinic Coordinator of the

Orthodox Union Kashruth Division

2 comments:

  1. 1. 'A visitor' posted on the Fri 25 Jun 2004, 1:37 pm
    Stop using the straw man of the Kosher Tax. The serious charge is that the Certification Industry is a Mafia with "featherbedding masquarading as frumkeit"
    If the OU has nothing to hide why not publish your financials.
    The OU is by no means the only culprit-local Vaads are also considered "Mafia" type. If someone wants to enter and start a new store you must use and pay tribute to the local Vaad. The local Vaads might even be more guilty of "featherbedding masquarading as frumkeit"
    mykroft

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  2. 2. 'Dani Weiss' posted on the Fri 25 Jun 2004, 1:54 pm
    in case you missed it previously this is a response to people who email about a "KOsher Tax".
    if you have a problem with the OU and its finances, the odds are decent that my blog is not the place to have it adressed.
    pull yourself together like an adult and talk to someone at the OU instead of mouthing off on the internet. yeah - you look so smart when you get angry on a blog. way to change the world, mykroft. now where the fuck did i put that sarcasm tag?

    ReplyDelete