Should churches, etc have tax exempt status?

[Atlanticatia]

In many countries, churches are exempt from paying tax. In the US, they're exempt from federal tax, sales taxes, local and state taxes, property taxes, and donations to churches are tax-deductible. In some cases, they might be exempt from sales taxes, etc.

The First Amendment reads: "Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof."

Proponents of tax exemption for churches make the argument that it keeps the state from the church - i.e. if the church pays no tax, they won't try to influence the government. Churches provide many services to the public and should be tax exempt. Many people would suffer if churches had less resources available to them. Generally, it's seen as a constitutional right.

Opponents of tax exemption for churches make the argument that it violates the separation of church and state, and the government is losing out on serious tax revenues. According to one estimate, churches own over $300-$500bn of property, and New York City alone is losing out on $627m in tax revenues. While nonprofits have to file a tax return, but might not have to pay tax, churches don't even have to file a tax return. Huge amounts of taxes are not being collected, with $82.5 billion as a very conservative estimate.

In my opinion, churches should not be tax exempt. If they perform charitable activities, and would qualify as a non-profit organization, they should receive the same tax advantages as a nonprofit, but they should not receive any special status because of their religious status. The state should not give any preference to religion - which it is doing by exempting churches from taxation.

Also, the definition of a 'church' or 'religious organization' is becoming increasingly muddled. Who decides what is considered eligible for tax exemption? Should, for example, the Church of Scientology be exempt? Should we exempt the Flying Spaghetti Monster Church? Also, I think that the idea of church tax exemption is much different from the reality.
Many people think of a small, neighborhood church that does a lot of good for the community when they think of tax-exempt churches. However, there are many 'megachurches' - which are arguably doing many things 'for profit', and don't really deserve any special status. Here's one stat - "US Senator Chuck Grassley, MA (R-IA) launched an investigation into these groups in Nov. 2007 after receiving complaints of church revenue being used to buy pastors private jets, Rolls Royce cars, multimillion-dollar homes, trips to Hawaii and Fiji, and in one case, a $23,000, marble-topped chest of drawers installed in the 150,000 square foot headquarters of Joyce Meyer Ministries in Fenton, Missouri." Also, many pastors/ministers receive tax-exempt status on their homes - which might be very lavish and expensive. Should they be exempt from tax? Another quote: "Church leaders Creflo and Taffi Dollar of World Changers Church International had three tax-free parsonages: a million-dollar mansion in Atlanta, GA, a two-million-dollar mansion in Fayetteville, GA, [63] and a $2.5 million Manhattan apartment. [64] Kenneth and Gloria Copeland, leaders of Kenneth Copeland Ministries in Fort Worth, TX, live in a church-owned, tax-free $6.2 million lakefront parsonage."
We are missing out on tens of billions of dollars - maybe even hundreds - by not taxing churches. Churches should be taxed just like any other private entity, and if they are a nonprofit, they should receive nonprofit/charitable status. I think that it's archaic and odd to exempt churches from tax in what should be a secular society/state, not a theocracy.

So, what does NSG think? Should churches/religious organizations receive special tax-exempt status?

[Gingeska]

Everything should have tax exempt status with the exception of sales-tax.

No income tax, no property tax, no "special" taxes on certain goods.

Just a percentage of all sales.

[Othelos]

Churches should be classified as non-profits.

[Pandeeria]

Depends. If they're making a surplus profit, then that's business and hence taxable.

[Washington Resistance Army]

Depends. If they're making a surplus profit, then that's business and hence taxable.

Pretty much.

[Bombadil]

Proponents of tax exemption for churches make the argument that it keeps the state from the church - i.e. if the church pays no tax, they won't try to influence the government.

Is that really the logic? Surely the other way round, that in paying taxes Churches would be at the mercy of government in making laws that impact on the establishment of a church.. not that there aren't rules anyway but still..

[Pandeeria]

Everything should have tax exempt status with the exception of sales-tax.

No income tax, no property tax, no "special" taxes on certain goods.

Just a percentage of all sales.

No.

That would make sales tax unbelievably high. Unless you're one of those people that call for extreme low taxation. In which case, still no.

[Soldati Senza Confini]

Churches have tax exempt status because beyond being a church they are also supposed to be non-profit, non-taxable organizations.

If the church is making a profit they should lose their privileged status.

[Atlanticatia]

Proponents of tax exemption for churches make the argument that it keeps the state from the church - i.e. if the church pays no tax, they won't try to influence the government.

Is that really the logic? Surely the other way round, that in paying taxes Churches would be at the mercy of government in making laws that impact on the establishment of a church.. not that there aren't rules anyway but still..

People say that if churches don't pay tax, they have no authority to play a role in politics, or something.

[Bombadil]

Is that really the logic? Surely the other way round, that in paying taxes Churches would be at the mercy of government in making laws that impact on the establishment of a church.. not that there aren't rules anyway but still..

People say that if churches don't pay tax, they have no authority to play a role in politics, or something.

Ha ha, that's worked real well.

[Atlanticatia]

People say that if churches don't pay tax, they have no authority to play a role in politics, or something.

Ha ha, that's worked real well.

*looks at American Congress and the Religious Right*

[Gingeska]

Everything should have tax exempt status with the exception of sales-tax.

No income tax, no property tax, no "special" taxes on certain goods.

Just a percentage of all sales.

No.

That would make sales tax unbelievably high. Unless you're one of those people that call for extreme low taxation. In which case, still no.

I do support low taxation.

and "yes"

[Atlanticatia]

No.

That would make sales tax unbelievably high. Unless you're one of those people that call for extreme low taxation. In which case, still no.

I do support low taxation.

and "yes"

That would directly hit the worst off and would have a negative impact on demand, if the sales tax was that large.

[SaintB]

It really depends on the church. If the church has holdings in real estate and/or other business ventures (such as the Mormans) than it should have to pay taxes on its income. If it relies on charitable donations the way that the local Methodist Church than it should be exempt as a non-profit.

[Christian Democrats]

If you want church and state to be separate, it only makes sense not to tax houses of worship.

The First Amendment reads: "Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof."

Certainly, the government shouldn't charge people for the freedom to practice their faiths.

[Washington Resistance Army]

If you want church and state to be separate, it only makes sense not to tax houses of worship.

The First Amendment reads: "Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof."

Certainly, the government shouldn't charge people for thefreedom to practice their religion.

You are aware other religions are taxed yes?

[Christian Democrats]

You are aware other religions are taxed yes?

I'm not sure what you're talking about. Churches, as defined by the IRS, are exempt from taxes in the U.S.

http://www.irs.gov/Charities-&-Non-Profits/Churches-&-Religious-Organizations/Churches--Defined

[Risottia]

Proponents of tax exemption for churches make the argument that it keeps the state from the church - i.e. if the church pays no tax, they won't try to influence the government.

They won't try to influence the government FURTHER they mean... and it's evidently false.

Churches provide many services to the public and should be tax exempt.

They provide services to the public, often like a business. The problem is that businesses owned by churches are tax exempt - thus violating the basic rules of fair competition.

While nonprofits have to file a tax return, but might not have to pay tax, churches don't even have to file a tax return.

And one doesn't understand why.

In my opinion, churches should be tax exempt. If they perform charitable activities, and would qualify as a non-profit organization, they should receive the same tax advantages as a nonprofit, but they should not receive any special status because of their religious status.

Eh? I see contradiction. Being tax-exempt IS a special status!
Although... reading further your post... seems like you missed a negation there.

[Risottia]

If you want church and state to be separate, it only makes sense not to tax houses of worship.

The First Amendment reads: "Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof."

Certainly, the government shouldn't charge people for the freedom to practice their faiths.

1.Since when "people" are "churches"?
2.Since when taxing property and profits means prohibiting religious practice?

[Washington Resistance Army]

You are aware other religions are taxed yes?

I'm not sure what you're talking about. Churches, as defined by the IRS, are exempt from taxes in the U.S.

http://www.irs.gov/Charities-&-Non-Profits/Churches-&-Religious-Organizations/Churches--Defined

>Other religions
>You bring up Churches

You are aware religions other than Christianity exist yes? The IRS codes are shitty at best (the whole tax code sucks but I digress) on what religious groups can and can't be taxed.

[Pandeeria]

No.

That would make sales tax unbelievably high. Unless you're one of those people that call for extreme low taxation. In which case, still no.

I do support low taxation.

and "yes"

That would damage the economy, make infrastructure complete shit, and would lower the standard of living.

So no. If you want shitty infrastructure and no government programs, go to a poor central Asian nation where taxation is virtually unheard of.

[Christian Democrats]

If you want church and state to be separate, it only makes sense not to tax houses of worship.


Certainly, the government shouldn't charge people for the freedom to practice their faiths.

1.Since when "people" are "churches"?
2.Since when taxing property and profits means prohibiting religious practice?

1. Churches have been persons for decades if not longer.

2. You're not all that free to practice your faith if the government is charging you for it. None of the other freedoms named in the First Amendment have taxes associated with them.

[Othelos]

1.Since when "people" are "churches"?
2.Since when taxing property and profits means prohibiting religious practice?

1. Churches have been persons for decades if not longer.

2. You're not all that free to practice your faith if the government is charging you for it. None of the other freedoms named in the First Amendment have taxes associated with them.

People pay sales taxes when buying firearms.

[Meridiani Planum]

I don't see why churches must be taxed, but then I want to simplify and minimize taxes.

I'm an atheist, but I can see how churches are community groups that fulfill a role for those religious communities. These are effectively non-profit organizations. Why should one want to discourage such groups with taxes? They don't necessarily have deep pockets. Any taxes would disproportionately affect the churches of poor communities.

I can understand people wondering if "mega-churches" should be taxed, depending on where the money goes. But churches in general? I just don't see the justification unless it is a greed for tax money.

[Christian Democrats]

1. Churches have been persons for decades if not longer.

2. You're not all that free to practice your faith if the government is charging you for it. None of the other freedoms named in the First Amendment have taxes associated with them.

People pay sales taxes when buying firearms.

I'm glad to see how knowledgeable you are about the First Amendment.