The point of the story is to make you ask yourself, what belongs to God vs Caesar? In Hebrew tradition, everything rightfully belongs to God, who created everything. "Mine is the gold, mine is the silver."
The context of the story is that there was a tax revolt going on. Jesus's questioners were trying to trap him into picking sides. If he went along with the revolt he would have been a Roman enemy, if he did not then he would lose the respect of the people. What he did was send a message that would have two different meanings to two different people. Romans would find his answer to be satisfying and the Jews would interpret his words in the context of their religion. The Jews would realize the implication of having graven images of rulers who announced themselves Gods, they would also understand the implications of worshipping someone who was God.
Keep in mind Caesar saw himself as a God.
Jesus asked to see a denarius which was the personal coin of Caesar. It was minted with his face on it. It was basically political propaganda.
First, while the verbal answer to the counter-question of whose image and inscription the coin bears is a feeble, "Caesar’s," the actual image and inscription is much more revealing. The front of the denarius shows a profiled bust of Tiberius crowned with the laurels of victory and divinity. Even a modern viewer would immediately recognize that the person depicted on the coin is a Roman emperor. Circumscribed around Tiberius is an abbreviation, "TI CAESAR DIVI AUG F AUGUSTUS," which stands for "Tiberius Caesar Divi August Fili Augustus," which, in turn, translates, "Tiberius Caesar, Worshipful Son of the God, Augustus."
On the obverse sits the Roman goddess of peace, Pax, and circumscribed around her is the abbreviation, "Pontif Maxim," which stands for "Pontifex Maximus," which, in turn, means, "High Priest."
By saying Render unto Caesar, his questioners couldn't turn him in for revolt because it sounds like he's taking Caesar's side. The thing is, Jews would know he was also making a reference to that "graven image" inscripted on the coin. No to mention it's telling that the religious leaders even had a denarius for him to inspect because only people in cahoots with Rome would have that coin on them.
Tiberius’ denarii were minted at Lugdunum, modern-day Lyons, in Gaul. Thus, J. Spencer Kennard, in a well-crafted, but out-of-print book entitled Render to God, argues that the denarius’ circulation in Judaea was likely scarce. The only people to transact routinely with the denarius in Judaea would have been soldiers, Roman officials, and Jewish leaders in collaboration with Rome. Thus, it is noteworthy that Jesus, Himself, does not possess the coin. The questioners’ quickness to produce the coin at Jesus’ request implies that they routinely used it, taking advantage of Roman financial largess, whereas Jesus did not. Moreover, the Tribute Episode takes place in the Temple, and by producing the coin, the questioners reveal their religious hypocrisy – they bring a potentially profane item, the coin of a pagan, into the sacred space of the Temple.
Finally, both Stauffer and Kennard make the magnificent point that coins of the ancient world were the major instrument of imperial propaganda, promoting agendas and promulgating the deeds of their issuers, in particular the apotheosis of the emperor. As Kennard puts it, "For indoctrinating the peoples of the empire with the deity of the emperor, coins excelled all other media. They went everywhere and were handled by everyone. Their subtle symbolism pervaded every home." While Tiberius’ propaganda engine was not as prolific as Augustus’ machine, all of Tiberius’ denarii pronounced his divinity or his debt to the deified Augustus.
After seeing the coin, Jesus then poses a counter-question, "Whose image and inscription is this?" It is again noteworthy that this counter-question and its answer are not necessary to answer the original question of whether it is licit to pay tribute to Caesar. That Jesus asks the counter-question suggests that it and its answer are significant.
The counter-question is significant for two reasons.
....Second, because the hostile question was a direct challenge to Jesus’ authority as a rabbi on a point of law, His interrogators would have expected a counter-question grounded in scripture, in particular, based upon the Torah. Two words, "image" and "inscription," in the counter-question harkens to two central provisions in the Torah, the First (Second) Commandment and the Shema. These provide the scriptural basis for this question of law.
God Prohibits False Images. The First (Second) Commandment prohibits worship of anyone or anything but God, and it also forbids crafting any image of a false god for adoration, "I am the Lord thy God, who brought thee out of the land of Egypt, out of the house of bondage. Thou shalt not have strange gods before me. Thou shalt not make to thyself a graven thing, nor the likeness [image] of any thing…." God demands the exclusive allegiance of His people. Jesus’ use of the word, "image," in the counter-question reminds His questioners of the First (Second) Commandment’s requirement to venerate God first and its concomitant prohibition against creating images of false gods.
First, while the verbal answer to the counter-question of whose image and inscription the coin bears is a feeble, "Caesar’s," the actual image and inscription is much more revealing. The front of the denarius shows a profiled bust of Tiberius crowned with the laurels of victory and divinity. Even a modern viewer would immediately recognize that the person depicted on the coin is a Roman emperor. Circumscribed around Tiberius is an abbreviation, "TI CAESAR DIVI AUG F AUGUSTUS," which stands for "Tiberius Caesar Divi August Fili Augustus," which, in turn, translates, "Tiberius Caesar, Worshipful Son of the God, Augustus."
On the obverse sits the Roman goddess of peace, Pax, and circumscribed around her is the abbreviation, "Pontif Maxim," which stands for "Pontifex Maximus," which, in turn, means, "High Priest."
In the Tribute Episode, it is only after Jesus’ counter-question is asked and answered does He respond to the original question. Jesus tells His interrogators, "Render therefore to Caesar the things that are Caesar’s; and to God, the things that are God’s." This response begs the question of what is licitly God’s and what is licitly Caesar’s.
In the Hebrew tradition, everything rightfully belonged to God. By using the words, "image and inscription," Jesus has already reminded His interrogators that God was owed exclusive allegiance and total love and worship. Similarly, everything economically belonged to God as well. For example, the physical land of Israel was God’s, as He instructed in Leviticus 25:23, "The land [of Israel] shall not be sold in perpetuity; for the land is mine, and you [the Israelites] are but aliens who have become my tenants." In addition, the Jewish people were to dedicate the firstfruits, that first portion of any harvest and the first-born of any animal, to God. By giving God the firstfruits, the Jewish people acknowledged that all good things came from God and that all things, in turn, belonged to God. God even declares, "Mine is the silver and mine the gold."