Jesus was looking at one of Caesar's coins when He said those words. And the context of the conversation was taxes, so it was quite appropriate to use the coin to illustrate His point; the question of taxes deals with how we should respond to Caesar in his claim on money.

First of all, let's set the stage a little (Matthew 22:15-20). Jesus is minding His own business and the Pharisees send some of their followers, to trick Jesus into saying something that could be used against Him. They tried to be slick about it: “Teacher,” they said, “we know how honest you are. You teach the way of God truthfully. You are impartial and don’t play favorites." They thought that would lull Him to sleep, but it didn't. They continued: "Now tell us what you think about this: Is it right to pay taxes to Caesar or not?”

“You hypocrites! Why are you trying to trap me? Here, show me the coin used for the tax." "Whose picture and title are stamped on it?" "Well, then, give to Caesar what belongs to Caesar, and give to God what belongs to God.”

His point is that the correct line of action for dealing with any situation can be seen in the situation itself. Water is good for drinking or bathing, food is good to eat, and so each thing has its purpose. "Show me the coin used for the tax. Let's look at it and it will tell us what its purpose is. See, this is Caesar's coin. Let him keep it."

Tax collection was a big issue for the Jewish people in that day, since it was a symbol of their captivity, and of God's apparent lack of action. It was an affront to Jewish national and personal pride that they were required to pay taxes, and it rancoured in their minds. Jesus had discussed the matter of taxes with Peter previously (Matthew 17:20-30). Jesus and the disciples had recently arrived in Capernaum, and some tax collectors approached Peter asking him if Jesus would pay the two drachma tax. Peter answered "yes", then he went back to the house to find Jesus. But Jesus spoke before Peter could:

"What do you think, Simon; from whom do the kings of the earth collect duty and taxes—from their own sons or from others?"

"From others", Peter replied.

Then Jesus said: "Then the sons are exempt, but so that we may not offend them, go to the lake and throw out your line. Take the first fish you catch; open its mouth and you will find a four-drachma coin. Take it and give it to them for my tax and yours."

How convenient. Just then a fish happened to be swimming by in the lake with just enough money in its mouth to pay for both Peter and Jesus. What comes across strikingly in this scenario, and in the previous case where the Pharisees tried to trap Jesus with the question about taxes is that Jesus really does not care. He does not concern Himself with such matters. This is the first point to emphasize when responding to people who are so hot and bothered about the issue, who feel so strongly that we must or must not pay taxes.

The next important point we can see from these events is that it is not right for anyone to ask Jesus and Peter to pay taxes. Most preachers today will tell you that you should pay the taxes because of fear of retaliation from the State, or because the State needs the money to build roads. THIS IS WRONG TEACHING. According to Jesus, none of those explanations is valid. "The sons are exempt." The only reason why Jesus even bothered was because he doesn't want people to be offended. Even though those tax collectors and the regime they represented were totally wrong, God teaches us to pay the taxes, just to keep the peace. It's better that way. God knows that, contrary to popular opinion, money does pretty much grow on trees. So he's not bothered by it.

Anarchism is not about open rebellion, and being contrary. Our rebellion is in our minds, to "renew our minds"; that we refuse to think as the world does, to be "conformed to the world". The Christian Anarchist is a free thinker, proving what is the good and acceptable good will of God. (Romans 12:2). When we pay taxes, let it be known that this is not God's endorsement of the system.