Is it fair that churches in the United States are, for the most part, tax exempt? Is taxing the property of a Church a violation of the Constitution? Let's look at the First Amendment:
Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances.
Doesn't say anything about the right of religions to exist outside the realm of taxation, does it? In a very interesting ruling, Chief Justice William Rehnquist wrote in the case Regan v. Taxation With Representation (1983) :
“Both tax exemptions and tax deductibility are a form of subsidy that is administered through the tax system. A tax exemption has much the same effect as a cash grant to the organization of the amount of tax it would have to pay on its income. Deductible contributions are similar to cash grants of the amount of a portion of the individual's contributions. The system Congress has enacted provides this kind of subsidy to nonprofit civic welfare organizations generally, and an additional subsidy to those charitable organizations that do not engage in substantial lobbying. In short, Congress chose not to subsidize lobbying as extensively as it chose to subsidize other activities that nonprofit organizations undertake to promote the public welfare.”
Some would argue that the taxation of Churches, their properties or profits would be the state's interference in Church operations. Other opponents state taxing churches would be tantamount to driving the smaller denominations out of business because their congregations would not be able to sustain such a tax burden. But is it fair for the rest of the population to carry the burden? By granting tax exempt status to religious organizations, is the state subsidizing religion? In the last 25 years, the fundamentalist Christian community has wielded great power in Washington, D.C. And state capitals around America. Tax deductible contributions have been funneled into lobbying efforts and advertising campaigns in an attempt to change the political climate. It's one thing to place a tax burden upon a congregation who uses its donations in the discharge of Church business. It's quite another to use the same money to lobby government officials. The Christian Coalition of America's Lobbying Registration form in 1999 states that the coalition is a Grassroots Citizens Group.
Article comments
1 - Nancy
Most religions maintain a very pervasive political influence. I can attest that many times at a Catholic church the priest has read out a directive, very lightly and not very convincingly veiled as a "meditation", of candidates who follow the church's policies, and the spiritual results of not voting for said candidates or referendum items - spiritual blackmail, as it were. They also frequently praise or damn various candidates or political parties from the pulpit. I have long advocated full and rigorous taxation of all churches, since not one that I have ever attended has toed the line of being non-political, and as you pointed out, the fundamentalist/evangelical churches are even more egregious and blantant in their political pandering.
Additionally, it does indeed amount to an invisible tax on the public to support and subsidize religion, which is barred by the Constitution, and which I, at least, resent as a tax-paying individual.
Unfortunately, as with anything that will take guts and honesty, this is an issue about as likely to be proposed and passed by Congress as a snowball existing in hell, particularly in the US in which, it has been reported by the NY Times & W Post, over 68% of persons polled believed "very strongly" in an organized religion/church.
If Dave Nalle or anyone else knows of an website dedicated to eradicating this subsidy of religion via petitioning congress, I'd be glad to hear about it.
2 - Lewis
Any attempt to curtail the clearly political efforts of the Christian Coaltion and like-minded groups would be met with screaming that their 1st amendment rights are being attacked. The Congress will do little to tighten the definitions and regulations because too many are dependent on the money they receive thru the various groups that would be affected. The mainstream press will not address the issue out of fear, just as they do not want to delve into the Downing Street memo's implications - they have been pounded for being "liberal" to the point that they are on the defensive, which is just what the Relgious Right and their political allies wanted.
3 - Maurice
Here in Idaho our population is disproportionately mormon. Our state income tax is 8%. Mormons pay 10% (on the gross!) to their church. I think a good step would be for the church's to at least report annual receipts. We all know that the church's are very rich, but the question is how rich.
One other point. I belong to a tennis club that is tax exempt. I am against taxes in the first place but if they are going to confiscate wages it should be for everyone equally.
4 - Maurice
Great post, Silas.
5 - Bill Bacon
The net worth of Pat Robertson or Jerry Falwell is fairly irrelevant to the point. Pat and Jerry *are* taxed on their income - ministers are not tax-exempt - while the church ministries they lead are exempt.
On the issue of church tax-exemption, I am fairly agnostic. Although, if you revoke the exemption of churches because of the political activities of some of their members, I suggest you look as well into the political activities of the membership of say, Amnesty International.
6 - Dave Nalle
Churches are businesses and ought to be taxed as such. If they are incorporated and taxed they can still write off salaries and other legitimate expenses, so if they don't turn a profit they still won't have to pay any taxes.
Charities run by churches should be able to qualify as non-profits, and if the churches put any profits they make into those charities then they could turn a profit, dedicate it to good works, and never pay taxes.
Dave
7 - Nancy
Maurice, how does the Mormon church know how much anyone grosses to begin with - do Mormons have to turn over copies of their tax returns to the temple, or what? And what happens if they refuse to ante up 10%? What if they decide they can only afford 1%, or less? What if they just don't like being dictated to about how much to give? The Catholic church is whining and making noises about parishioners tithing 10% of gross, especially since the lawsuits, but it would seem everyone is so disgusted with the mishandling of that situation (Bernie Law is still living fat & happy in Rome) plus everyone knows the Vatican owns huge reserves and investments worldwide, that no one in their right mind in the US at least will likely cough it up. There's only so much you can abuse a cash cow before the cow dries up and kicks back.
8 - Dave Nalle
From what I've heard from Mormon friends the church actively spies on them.
I had a classmate in high school who was a nominal mormon and ended up going to BYU.
One day in his sophomore year he decided to drive to a suburb of SLC and order a beer in a bar. The bartender took his student ID as proof he was of age, then called BYU and told the dean he was there drinking a beer and the next day he was expelled from the university.
I think that story says it all about the Mormon church.
Dave
9 - Nancy
Man, I wouldn't belong to any organization like that. Or I'd sue for invasion of privacy....
10 - Silas Kain
It is my understanding that Mormons submit a copy of their tax returns to back up their tithing commitment to the Church.
11 - Silas Kain
Where are the Soldiers of Christ? Where are the fundamentalists? Should I have made this post about taxing just heterosexual religious denominations?
12 - Friend
If you tax churches, you must also tax hospitals, schools, labor unions, and the Masonic Lodge. Ain't gonna happen!
Besides, as David wrote correctly, there will be nothing to tax. Churches won't have profits. All their money will be spent on ministry, which is a business deduction. They could write off 100% of their income.
And remember churches DO pay taxes already on active income like a secular buisness owned by a church. They pay no taxes on donations which is as it should be.
I am amazed at the ignorance of the original author on this subject. He actually thought that Jerry Falwell and Pat Robertson did not pay taxes!