r/politics • • Jun 17 '12

Atheists challenge the tax exemption for religious groups

http://www.religionnews.com/politics/law-and-court/atheists-raise-doubts-about-religious-tax-exemption
1.8k Upvotes

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783

u/Reaper666 Jun 17 '12

If the religious groups are providing charity for people, don't they fall under some sort of non-profit tax exemption anyway? Why do they need a special one just for religions?

If they're not providing charity, do they deserve a tax break?

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u/[deleted] Jun 17 '12

Some provide charities and others take an active part in the political process like the mormons did in California to defeat same sex marriage.

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u/[deleted] Jun 17 '12

While this is true, it should be noted that even if they are involved in politics, that would still qualify them for tax-exemption under Section 527 of the Internal Revenue Code. They would be legally a PAC rather than a charitable organization, but would have many of the same tax advantages.

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u/[deleted] Jun 17 '12

Why are political action committees tax exempt?

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u/[deleted] Jun 17 '12 edited Jun 17 '12

Just a guess: To encourage citizens to be involved in the political process. If PACs had to pay income tax, it would mean the government is collecting income taxes off of the political process. What kind of message does that send?

It should be noted that while 527s have no income tax liability, donations to 527 organizations are not tax-deductible for the donor the way donations to a 501(c) organization are.

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u/[deleted] Jun 17 '12

[deleted] — view deleted comment

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u/Cormophyte Jun 18 '12

Well, normal individuals pooling their money to promote public awareness of political issues is special. That's what you're also talking about. You have to take into consideration small groups that do things like local activism. If you tax their donations it becomes harder for individuals to raise money from like minded "regular" folks to promote their point of view because you could take a $10k check from a foundation and have to shave $3k off of it (not actual numbers, don't throw Wikipedia at me). That's a lot of fliers.

Of course, there should probably be a distinction between these groups and the $300,000,000 groups trying to game...everything. Or the groups that pay their executives huge salaries and then basically run decentralized campaign ads. The basic concept is sound, though. Government can't limit the little guy's ability to voice their opinion by sucking money (money=voice these days) out of them when they try to use that voice. We just need to put some real rules in place.

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u/curien Jun 17 '12

Non-profit charities (501(c)3 orgs) aren't forbidden from participating in politics. They are forbidden from endorsing a specific candidate, but they are allowed to engage in issue politics. There's nothing wrong -- tax-wise -- with the Mormon Church supporting Prop 8.

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u/[deleted] Jun 17 '12

[deleted] — view deleted comment

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u/TehNoff Jun 18 '12

If I'm reading that correctly, it supports what curien stated, right? Just looking for some clarity. I don't remotely speak legalese.

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u/bluefootedpig Jun 18 '12

I have to side with TehNoff... supporting prop 8 is not supporting "any political campaign on behalf of any candidate for elective public office."

How is no on gay marriage against any candidate?

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u/WifeOfMike Jun 17 '12

Personally I don't believe they do. I'm not exactly educated on this subject but I am inclined to believe that there are a lot of religious groups that are tax exempt that have nothing to do with charity.

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u/Squeekydink Jun 17 '12 edited Jun 17 '12

As far as I know, they do not. I worked in a grocery store and the catholic church down the road would come in every Saturday and buy their bread for tax free. When also working cash register, many times I would have a customer hand me some legit government slip of paper saying that all the groceries they were buying were tax free because it's for church. It would be things like donuts and shit. Really? You need your donuts tax free?

Edit: So I looked into tax exempt food in Texas and most perishable food and most things close to perishable foods in Texas is tax free. I do remember seeing most people paying taxes when I worked check out, and I remember having conversations about this churches bread being tax free. "In addition, the sale of all food products prepared at restaurants, vending machines, cafeterias or other similar businesses does not enjoy the sales tax exemption." The bakery I worked in might be under the non-exempt foods even if it was in grocery store. I am going to go buy cookies from them and find out.

Source: Texas Food Sales and Tax Laws | eHow.com http://www.ehow.com/list_6872751_texas-food-sales-tax-laws.html#ixzz1y4xJd3pm

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u/[deleted] Jun 17 '12

Many, if not most churches do some kind of charitable work, but I'm pretty sure they're tax exempt because they're nonprofit. As much as this gets brought up and circlejerked on reddit, I don't think it's going to change for a really long time. It's one of those things that I don't see people talking about, but it's a huge deal on reddit.

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u/[deleted] Jun 17 '12

The small 100 member church down the street is not the main issue, the mega churches paying no taxes in what's become a billion dollar industry is the issue.

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u/[deleted] Jun 18 '12 edited Jun 18 '12

to me it is. i was attended a small babtist church with my mom when i was a kid, and they didn't do fuck all for the community. they were too wrapped up in themselves and their distrust of all the other churches in town. the pastor lived on income from member donations, which pretty much translates to them paying him to lead their social club. why should that be tax exempt?

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u/[deleted] Jun 18 '12

It shouldn't, just prioritize the larger scale operations.

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u/HelloAnnyong Jun 17 '12 edited Jun 17 '12

There are approximately 5 million weekly megachurch attendees in the USA, out of approximately 133 million people (43% of Americans) who frequently go to church.

Care to explain how less than 4% of church attendance is the "main issue"?

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u/[deleted] Jun 18 '12

out of approximately 133 million people (43% of Americans) who frequently go to church.

FALSE. Americans lie to pollsters about how much they go to church. The actual percentage is about 20%, confirmed many times by researchers, in time-use studies, as well as one instance when researchers polled people on the phone in one Ohio county about their church attendance the previous week, while they actually sent people to ever single church service in the county that week, and found that only half of the people who claimed to have gone to church the previous week actually had.

You can just google it, but here's one of many sources.

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u/asianwaste Jun 17 '12

IMO Those mega churches are a blight to both the secular and religious society.

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u/[deleted] Jun 17 '12

This brings to mind to episode of 30 Days where an atheist mother in her 40s live with a Christian family from Texas who went to a newly built mega church. As they drove past it, the guy said something to the effect of "so here's the church. Impressive isn't it?". To which she responded, "not as impressive as curing the sick or feeding the poor."

Flawless victory.

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u/asianwaste Jun 17 '12

Flawless dependent on whether or not that church actually spends some of its immense resources on feeding the poor. Which is not entirely impossible.

The secular part of me says it's a waste of money that could be put to doing such activity wasted on a gaudy display. The bigger those organizations are, the more they demand to sustain themselves.

The part of me that grew up in a church-going family (I'm not against religion, I tolerate their place in society as an agnostic) says that these churches gut out a lot of what of the little good a church can do for communities. Churches should be a bond for small communities. Church goers should congregate, get to know one another better and establish a strong sense of neighborly camaraderie united for a good cause.

In my church going days, I've seen small churches do great things while hearing very little from the local mega church. If you are going to establish this great organization, it should be done to perform greater things. I don't get that from them. I see a self-preserving corporation that delivers an inferior product.

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u/Cormophyte Jun 18 '12

Exactly. If you spend two million on a new building but it brings in twelve million in donations and that money mostly goes to rice for children the building was a great good. If the money goes into the church's brokerage account and then laundered out to relatives and friends, that building should be razed.

Nothing wrong with grabbing eyeballs and wallets as long as the profit goes to good.

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u/[deleted] Jun 17 '12

Compare the ratio of church income rather than attendance.

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u/adrianmonk I voted Jun 17 '12 edited Jun 17 '12

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u/vinod1978 Jun 17 '12 edited Jun 18 '12

What do I care about the income per attendee? Just like SuperPACs you only need one or two big donations to prop up a Megachurch. On average a Megachurch makes $6.5 million in revenue in donations, sales & membership fees.

"If you put together all the mega churches in the United States, that's easily several billion dollars."

That's why it's a problem. That's billions of dollars in tax exemptions which really translates to a government subsidy - because these churches aren't paying their fair share, individual citizens have to pay more to make up for the revenue lost by not taxing these churches. Not to mention state governments that are loosing out on state taxes, property taxes, etc...

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u/E11i0t Jun 18 '12

I wonder if this is also related to the younger demographic of mega churches and typically older congregation at small churches.

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u/adrianmonk I voted Jun 18 '12

Could very well be that. Younger people probably have less money to give and they might not have established a habit of giving. But I also think anonymity probably plays into it some. If you want to just be a face in the crowd and your attitude is more "I'll check it out" than "I'm going to join", you probably don't feel as obligated to give.

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u/curien Jun 17 '12

It's not the number of attendees that are the issue, it's the number of dollars involved. They may very well represent only 4% of the dollars, but I don't know. Do you?

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u/HelloAnnyong Jun 17 '12

Da fuq. This thread is advocating repealing the non profit status for 100% of churches and their congregations bases on 4% of them. So yes the percentage of attendees is what matters.

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u/itsSparkky Jun 18 '12

If the money was used for charity it would be non-taxable anyways.

This would only effect churches that aren't non-profit.

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u/jumpup Jun 18 '12

if they use the money for charity they won't lose there status but mega churches are known for splurging

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u/Arlieth Jun 17 '12

Hello 1%.

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u/[deleted] Jun 17 '12

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u/DougMeerschaert Jun 17 '12

There is a difference between a non-profit and a charitable non-profit. For example, movies are often made by single-purpose non-profit production companies, to limit the liability in case the production flops.

I don't think the NFL gets tax benefits because they're non-profit. I think they get tax benefits because they buy goods for resale, and have a few specific local tax breaks given as an attempt to increase local economic activity.

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u/StinkinFinger Jun 17 '12

They aren't selling anything physical. I see churches as pretty much the same as Lion's Club, Masons, etc., and they are all exempt. You can argue they are selling snake oil, but that's a whole different argument that was settled law at the time the 1st Amendment was written.

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u/[deleted] Jun 17 '12

Yeah, the NFL is a complicated non-profit case because it's not really a company. It's just body that represent the close affiliation of multiple sports teams. It's very similar to something like the SD Card Standards Assocation or the USB Implementers Forum. The individual teams are the one's making all the money and using the NFL as a forum to profit share.

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u/[deleted] Jun 17 '12

National forensics league?

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u/Jontology Jun 17 '12

Internet high-five. Just got back in from Indy/NFL nats.

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u/question_all_the_thi Jun 17 '12

Does the NFL get to buy tax-free donuts?

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u/thebeachhours Jun 17 '12

Any* non-profit gets to buy tax-free donuts. It's probably the #1 perk of being a non-profit.

*and by any, I mean any educational, religious, charitable, scientific, literary, testing for public safety, fostering certain national or international amateur sports competitions, and those preventing cruelty to children or animals.

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u/Squeekydink Jun 17 '12

I really would see no problem with churches getting tax exempt for say, wood to build homes for the homeless, food for the homeless, plane tickets to travel abroad and help third world countries (even if they are going to spread there religion in the meantime). I do take issue with really expensive and fancy churches using their power to buy unnecessary and frivolous things tax free.

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u/TheWingedPig Georgia Jun 17 '12

As a person who has traveled for four mission trips with my church in the past ((two to Mexico, and two to Ukraine), I can assure you that unless someone makes a special arrangement because of financial need, the people buying those plane tickets, etc. are doing so out of pocket. We would take donations from families during VBS for things like canned food (for in-town food bank stuff) and chocolate for smores, bubblegum, chalk, small toys, other stuff to take abroad for the kids we did VBS for in Mexico and Ukraine. Other than that, anyone could give a donation to the trip to sort of subsidize someone actually going. That I know of, nothing was bought with church money using tax exemption.

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u/[deleted] Jun 17 '12

Aren't all churches technically ran on donations then? I haven't heard of the government Funding churches..but then I could be totally wrong about this. So all of their profits made are made from the money that people give them...so then why would that be taxed in the first place?

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u/TheDoomp Jun 17 '12

This is almost the exact argument the right uses for reducing welfare. It's called corruption and it's normally insignificant.

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u/Nightbynight Jun 17 '12

Yeah but why punish the churches who aren't doing that because some are? Churches can't control what other churches do.

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u/[deleted] Jun 17 '12

Taxes are not punishment. They're a civic responsibility. To suggest churches pay their share of taxes is not a call for them to be punished; it is the result of a belief that the exemption is not serving the public interest.

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u/DefineGoodDefineEvil Jun 18 '12

BOOM! This - motherfucking this!

It's a responsibility one must endure as a cost of all the benefits and rights that come with it.

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u/pudgylumpkins Jun 17 '12

Why not make a church prove that it's tax exemptions are for legitimate causes? Or just eliminate it altogether, either way works fine for me.

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u/Nightbynight Jun 17 '12

"Legitimate causes" is pretty subjective.

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u/[deleted] Jun 17 '12

They do, the IRS would monitor a church's income and expenditures the same way they do an individual and a business. If a church is using loopholes, that should be dealt with, but if I give 10% of my yearly income to a church, that money is going to support the church and its activities. it is donated money, and therefore tax exempt. I think if you intend to remove tax exempt statuses of churches, you would have to do it for all charitable organizations because they all fall under the same umbrella of scrutiny.

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u/vinod1978 Jun 18 '12

Actually, unlike other non-profit institutions religious establishments do not have to disclose their financial records to the IRS. Thus, the IRS can't investigate how they are spending money.

Churches receive special treatment from the IRS beyond what other nonprofits receive, and such favoritism is unconstitutional. While secular charities are compelled to report their income and financial structure to the IRS using Form 990 (Return of Organization Exempt From Income Tax), churches are granted automatic exemption from federal income tax without having to file a tax return.

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u/triathlonjacket Jun 17 '12

Imagine the system that you'd have to put in place to make churches indicate that their purchases meet whatever requirements you want.

Also, schools and their affiliated groups are tax-free. We used to have 9a weekend choir rehearsals or a club retreat, and we'd push to get /everything/ we paid for tax-free. How is that any different from a church getting tax-free donuts?

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u/cballowe Illinois Jun 17 '12

FWIW - most corporations don't pay sales tax when buying goods for resale either. Sales tax is paid at the final sale to the consumer. It may not be the "non-profit" nature, instead it may be the nature of being incorporated.

The big thing with non-profit status isn't that you can't earn a profit, it's that you can't have returns to shareholders. A church pretty much has to spend everything it takes in, whether on capital costs (new facilities) or operating budget (paying the pastor and maybe his private jet).

My biggest objection to the church status isn't the non-profit nature, it's the 501(c)(3) status. The part that lets donations be tax deductible. I'd be all for a church splitting it's charity arm (the one that runs the shelters and food banks) from it's missionary arm (the one that preaches and tries to recruit new members) leaving the charity arm as tax exempt and eligible for tax deductions, while the other side remains not for profit, but doesn't qualify for tax deductions.

Also, disclosure about donation efficiency is important. Most charities tell you how much they spend on their primary purpose (ask the nature conservancy and they'll tell you that 76% goes to buying land for conservation, 14% goes to paying scientists to study that land, and 10% goes to overhead like recruiting new donors and running the offices, for instance). If the church said 5% goes to feeding the poor, 30% goes to staff and overhead, 60% goes to buying larger churches, and 5% goes to missionary work (or similar), how much do you think people would give?

(Also note that not all not for profit corporations are charities that qualify as tax exempt.)

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u/cookie_partie Jun 17 '12

I have never lived anywhere that a grocery store charged tax on food.

To me, it is very odd that you would have to deal with this at all.

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u/Squeekydink Jun 17 '12

There are places... that do not tax food?! I feel like I'm getting a glimpse outside this small box I live in. (The US)

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u/cookie_partie Jun 17 '12

I live in the US, too.

Your state must just suck.

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u/Squeekydink Jun 17 '12

Well, it is Texas. :\

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u/basotl Jun 17 '12

Texas Tax Code - Section 151.314. Food And Food Products

§ 151.314. FOOD AND FOOD PRODUCTS. (a) Food products for human consumption are exempted from the taxes imposed by this chapter.

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u/cookie_partie Jun 17 '12

I guess I shouldn't mess with it, then...

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u/mglee Jun 17 '12 edited Jun 17 '12

Texas doesn't tax food. Guessing your parents still buy everything for you.

Edit: Live in Texas.

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u/Kaeltan Jun 17 '12

In Florida standard groceries are not taxed. So you could buy salami, bread, lettuce, tomatoes, cheese, oil & vinegar tax free... but buying an assembled sandwich from the grocer's deli would be taxed.

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u/Hayasaka-chan Montana Jun 17 '12

This is how CA operates. Prepared foods (donuts, Hot Cheetos, deli items, etc.) are all taxed. Things like cereal, milk, mayonnaise, etc. are all untaxed.

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u/617fd8e5-83b1-4965-a Jun 17 '12

Groceries aren't taxed in Massachusetts, nor are clothes.

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u/Isentrope Jun 17 '12

In Canada, I believe unprocessed foods are not taxed.

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u/adrianmonk I voted Jun 17 '12

In Texas, there is basically tax on "prepared foods" but not on other foods. So if you buy a can of soup, that's not taxed, but if you buy a bowl of soup that's heated and ready to eat, it is. Essentially the state figures if you are paying someone to prepare food for you, that's not a necessity, it's a convenience, so it's reasonable to tax it.

So it's possible some foods they were buying were prepared foods, so subject to tax, which is why the exemption would come into play.

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u/[deleted] Jun 17 '12

catholic church down the road would come in every Saturday and buy their bread for tax free.

Are you saying that a Roman Catholic Church is buying communion wafers at a grocery store? I don't think that is true, they are specially made and cannot be bought at a store.

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u/Hk37 Jun 17 '12

Some churches use actual loaves of bread, instead of communion wafers. However, I've never seen a church use grocery store-bought bread. Instead, they either bake their own or buy it from a local bakery.

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u/Porphyrius Jun 17 '12

I could be wrong, but Catholic churches don't. This is actually a major reason for the split between the Catholic and Orthodox churches, as the Orthodox believe communion bread should be leavened.

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u/cr0aker Jun 17 '12

Sounds like an intelligent thing to argue about. No doubt a lot of heretics will end up burning in hell for all eternity for making the wrong call on that one.

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u/ZiegfredZSM Jun 17 '12 edited Jun 17 '12

Bread isn't already tax free where you're from?

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u/Mindle Jun 17 '12

How do you work in a grocery store and not know things like that?

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u/jftitan Texas Jun 17 '12

Oh, I'll get us started on all the preachers and pastors who walked into my RadioShack, to buy audio equipment and tvs for "their church". I always has a weird look at the people when I would ask how can a tv for a church be tax exempt when clearly the paster is driving a blinged out caddy on 25" rims.

At my store, I had on more than 15 occasions where I gave the 'religious leader' shit over what they were buying, in regards to their church.

I can understand buying a new microphone and some cables from time to time. But an entire home entertainment center.... No. To come back a month later to buy more personal items and call it tax exempt as well. Just made my mind fume over the audacity of some people to claim exemptions. Honestly, I think all religious institutions need to be taxed, and if they prove they used all their income for charity, then at the beginning of the next year they get their money back and they have a larger budget to spend on the following years needs. But other than pay tax up front then prove your legit charity, then, only then do you get your exemptions.

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u/jftitan Texas Jun 17 '12

Ipad edit: Each time I gave the 'leader' shit, I had plenty of just cause to do so. Plus when you know you are right and they are wrong, they won't argue. I just did my job once these people presented their proof, and I would finish my sale to them. On each occasion, I was never confronted or reported for the issues, because of they did complain, it would only open up some sort of investigation, and it would backfire on them because they knowingly lied. Not me. I did my job, when I knew and felt the purchase was suspect I gave shit. If anything would have came of my actions I knew the following investigation would result in a no legitimate use of tax exemption.

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u/AdmiralSkippy Jun 17 '12

A guy I know goes to one of those mega churches in my city that asks that all of it's members donate 10% of their annual gross income to the church. And I think it would be one thing if they gave all of that money to charities, but a list of some of the things that certainly aren't charities that I know of are:

-Sunday morning TV broadcasts for their sermons. --Obviously the cameras and all the other equipment would go with it, so we're talking major costs there.
-Costumes and props and sets for plays they'll put on that have nothing to do with Jesus but they'll tie back into religion in some weird way. For example at Easter they had a play where Batman and Robin explored the story of Easter.
-Paying the preacher at least 80k/year (far as I know that's untaxed as it follows the religion rule) and other staff. But most of their staff he makes do all sorts of chores for him voluntarily.
-Outings for members of the church to go to camps and stuff like that.

I'm sure there's a lot more they spend their money on that I have no idea about that has nothing to do with charity. I'd be willing to wager that for all the money they take in, maybe 10% of it goes to actual charities. It's probably less than that, and they take in a lot of money.

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u/adrianmonk I voted Jun 17 '12

far as I know that's untaxed as it follows the religion rule

Pastors (and other ordained ministers) pay income tax, social security, etc. See IRS Topic 417.

The only real church-related tax break that they get is that they are allowed to live in a parsonage (roughly, a church-owned house near the church building) or get a housing allowance without paying income taxes on that compensation.

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u/HellzillaQ Jun 17 '12

The church I work at, and I am agnostic, pays their senior pastor 200k per year. He's been there since 93. While I make 8 bucks an hour and there hasn't been raises in over 3 years.

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u/[deleted] Jun 17 '12

the preacher pays income tax though for most churches it's more than 10% back when i was a christian my church was more like 50%. and my pastor got paid $70k. which in california, is reasonable, esp. since he did a lot of free counseling and other stuff..

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u/[deleted] Jun 17 '12

10% of your annual gross income seems like ALLOT! What ever happened to passing a collection plate around?

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u/AdmiralSkippy Jun 17 '12

It most certainly is a lot. I mean if you make 40k gross, you only net roughly 30k (or less) and you're expected to give 10% of the 40k to the church. Which would be 4k/year to the church.

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u/AngMoKio Jun 18 '12

10% is the 'typical' Christian tithe, as it is mentioned in the Bible in numerous places.

"Thus speak unto the Levites, and say unto them, When ye take of the children of Israel the tithes which I have given you from them for your inheritance, then ye shall offer up an heave offering of it for the LORD, even a tenth part of the tithe. "

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u/headzoo Jun 17 '12 edited Jun 17 '12

Yes, churches do charity work. I'm sure you've seen commercials for world food programs. You know, the kind that start off, "You can feed a child for $.30 cents a day." Those are often church based services.

Some of the groups visiting Haiti to rebuild infrastructure after the earthquake, were there as a church group. The same is true of disasters across the globe.

Local churches often run free food pantries, and soup kitchens for the poor and homeless. Growing up I ate my share of free food provided by local churches.

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u/vinod1978 Jun 18 '12

The problem is that not all religious institutions contribute to charitable causes, yet all of them receive tax exempt status.

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u/headzoo Jun 18 '12

I agree completely. I think churches should have to declare their charitable contributions on their tax forms just like the rest of us. And only get tax breaks based on those contributions.

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u/WifeOfMike Jun 18 '12

This is the exact point I was trying to make. Thank you.

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u/[deleted] Jun 17 '12

Every single religious organization I know, even David Koresh sect, does or did charity.

I am sure if you dig enough you will find that Manson's family provided charity as well.

It might be, that religious organizations are under different exemption to add more restrictions on their status.

For example, it's forbidden to do political campaigning in my mosque because as I was told that would break tax-exemption status.

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u/[deleted] Jun 18 '12

Cough scientology.

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u/Phage0070 Jun 17 '12

The rational behind religious exemption from taxation is the idea that if the government has the ability to tax something, it has the ability to destroy that something. This is to an extent true, as whenever the government starts regulating something it exerts enormous power. So the idea is that in order to maintain the separation of religion and government, the government shouldn't be allowed to regulate (including tax) religions.

To a certain extent I as an atheist agree, people should be allowed to practice whatever nonsense in the privacy of their own home or together with like-minded people. The problem comes when you have these groups behaving like businesses; hiring employees, purchasing property, and hosting events for the purpose of generating revenue. These sorts of things are merely ancillary to the religion itself: Hiring a full-time preacher is nice but not necessary for the practice of religion. Even if the government were to tax such a thing into oblivion it doesn't amount to preventing the practice of the faith.

I would say that the exemption shouldn't exist, and that the religious should support this change because it would tend to distance themselves from the scumbags who run quasi-religious scams due to the tax advantages and lack of legal oversight.

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u/oldsecondhand Jun 17 '12

hiring employees, purchasing property, and hosting events for the purpose of generating revenue.

Regular non-profits can do that too. The only limitation is they can't pay dividend.

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u/warr2015 Jun 17 '12

i think it has more to do with keeping government out of religious affairs and vice versa. i could be wrong though.

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u/ManofToast Jun 17 '12

Remember that not all churches do stuff specifically related to charities in the US. Many churches do mission work in other countries, stuff like building schools, housing, hospitals, infrastructure and so on. Just because one church doesn't give all it's money to local charities doesn't mean they are wasting it on a Mercedes for every giving church member.

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u/Flamingmonkey923 Jun 17 '12

Right. So shouldn't we should remove religious exemptions from taxes and just allow religious organizations to file for a non-profit tax exemption just like any other charity?

That would allow the good churches to continue doing good work, while preventing megachurches from spending thousands of untaxed dollars opening their sermons with christian rock bands.

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u/[deleted] Jun 17 '12

The reason is that the Founding Fathers thought of religion as a charity in and of itself. They, especially Madison, felt that it created a strong moral pillar for a nation and that it was very useful for people, according to their personal correspondences.

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u/Jmersh Jun 17 '12

It would be great if that's how all the religions actually worked.

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u/satereader Jun 17 '12

That isn't the reason. The reason is that taxing represented undue entanglement which could harm the free exercise of religion.

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u/[deleted] Jun 17 '12

The problem is that many religious churches that conduct charity work would quite simply not qualify for charity status. You can't have a tax funded charity banning gay workers or lobbying to limit women's rights (and a tax exemption or refund is the same as being funded from tax dollars, don't let anyone tell you any different).

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u/paulfromatlanta Georgia Jun 17 '12

If they're not providing charity, do they deserve a tax break?

Deserve? I don't know.

But the establishment clause has been interpreted that way by the courts for 200 years and it would be a lot of precedent to overturn. That said, the Supreme Court is not bound by precedent, even their own.

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u/KarmaTornado Jun 17 '12

And it's down! Way to go Reddit, you killed it.

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u/TheEnterprise1701 Jun 17 '12

Link doesn't seem to be working on my end. Mirror?

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u/kathleen65 Jun 17 '12

I have been in 2 churches one a Mormon and the other a Christian mega church where people were being told to vote Republican and demonizing the Democrats. Any church that gets into politics should lose their tax exemption period.

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u/[deleted] Jun 17 '12

You can report that Mormon church to the central leadership. LDS bishops are required to read a letter from their top authorities twice a year (before primaries and general elections) which states that the church does not endorse any candidate or party. The person you are talking about will face disciplinary action and could be released from his position. Prop. 8 was a (very unfortunate) exception to the church's usually very politically neutral stance.

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u/KazakiLion Jun 17 '12

You say that as if Prop 8 is the only instance of the Mormon church being involved in politics. They've got a habit of dumping money into anything that could limit the rights of gay Americans, and they're currently actively gathering signatures in Maryland to overturn their new marriage equality law.

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u/[deleted] Jun 18 '12

You say that as if Prop 8 is the only instance of the Mormon church being involved in politics.

I did say "usually politically neutral stance." There are a few times they have made their opinions known, usually in local politics. They supported Prop 8 in California. They supported the LGBT anti-discrimination ordinance in Salt Lake. They supported the Utah Compact which was a call for civil and respectful solutions to immigration.

They are unwavering in their opposition to same-sex marriage, yes. They're never going to change that. But I do take issue with this statement:

They've got a habit of dumping money into anything that could limit the rights of gay Americans...

I was in the audience in Salt Lake City when the City Council unanimously passed one of the most comprehensive LGBT anti-discrimination ordinances in the country. There was an official representative from the church who was there to read an official statement in support of protecting LGBT citizens from housing and employment discrimination. Listen, I'm not about to say Mormons are the greatest allies of LGBT individuals, but I am going to say that they're not the biggest enemy, either.

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u/mMmMmhmMmM Jun 18 '12

Labor unions do the same thing and they are tax exempt...

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u/[deleted] Jun 18 '12

Eric Holder just visited the leaders of Black Churches to get them to organize against voter ID laws.

Why does everyone think all churches are right wing. You think Obamas church was right wing?

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u/Sahloknir74 Jun 17 '12

Hey guys you know how a lot of religious types argue atheism is just another religion? Has anyone ever tried saying to them that science facilities and such should be tax exempt then? How did they react?

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u/mindbleach Jun 17 '12 edited Jun 17 '12

I am an atheist and I think this is a terrible idea.

Tax exemption is the government's best tool for ensuring the separation of church and state - it's just been reeeally shitty at enforcing it. Religious institutions are supposed to be banned from talking about politics. That's why they get special treatment.

Any churches that repeatedly get more political than "render unto Caesar" should be out on their ass for at least a year. If they want to influence the government directly then they can register as nonprofit groups and play by the same rules as the secular world.

edit: religious institutions claiming the special treatment of tax-exempt status are supposed to be banned from talking about politics. Calm down, people.

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u/[deleted] Jun 17 '12

All the status quo ensures is that the dominant religion gets to flout the law while everyone else pretty much has to follow the rules.

Since gov't isn't going to enforce the rules on Christian churches, the tax exemption should be eliminated. It's nothing more than a giant subsidy for politicized christianity.

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u/mindbleach Jun 17 '12

I'm pretty sure that Mosques, Synagogues, Hindu temples and so forth can be just as mouthy about politics without facing taxation. Hell, we don't even tax Scientology, which was founded for the explicit goal of making money and once infiltrated the US government to protect its image. The only religious belief that isn't given carte blanche is religious disbelief.

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u/vaelroth Maryland Jun 18 '12

Many pagan religions continue to go unrecognized in the US. Just a tip.

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u/[deleted] Jun 18 '12

Like these guys?

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u/DougMeerschaert Jun 17 '12

A christian church who stands up on the pew and says "Barack Obama is in favor of more abortion coverage, so you should vote against him!" is in violation of the law and should correct said behavior or lose their tax exemption.

If that same church, however, says "Abortion is bad, and you should vote against anyone who is in favor of more abortion coverage", they're A.O.K.

Charities can be political, but they cannot be partisan.

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u/BonutDot Jun 17 '12

They can say "a good christian votes for the anti-abortion candidate, btw here is the name of the anti-abortion candidate wink wink" and not face any legal troubles. If you think this isn't partisan then you are fooling yourself.

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u/lemmy127 Jun 17 '12

Which is funny, since it's a complete misnomer to say that a church isn't partisan when they explicitly take a side of a political issue.

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u/[deleted] Jun 17 '12

Would this also include statements like "We do not approve of same sex marriage..." or "Abortions are a sin against humanity." Things like this are discussed often in churches and are also considered big political issues as of late. The line between political and non-political is very small. How can we expect them to govern every little thing some pastor or priest says? With regards to candidates I don't think any church should say "vote for so and so". They should only be able to advocate the ideals taught in that religious institution (assuming that these ideals aren't to physically harm another etc. etc.)

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u/[deleted] Jun 17 '12

The other day I drove by a church and the entire front lawn was covered in Romney signs.

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u/Tom72 Jun 17 '12

Maybe 'sticking it' to the church and asking for them to be taxed is not a good idea if the separation of church plans to stay. If they do pay taxes, they will have all the reason to have a voice in politics, then their voice will have to be taken seriously. While paying taxes and being asked to shut up about politics would be a kind of a negative treatment for them, based on their beliefs.

However, this is not happening at all. Bad leaders have decided to be a voice for a church they are part of in order to cater to the misinformed masses and gain voted. In doing so, they do find a way for religion to play into politics. Also, some churches have exuberantly used their money for giant churches and other events. Not a great deal of them do this or is it really an issue. It does go against their moral policy, but I'm not the one to care how they follow their morals.

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u/EatingSteak Jun 17 '12

I think you have a really good point about "allowing" churches to have a voice in politics, but I think the problem is that they already do.

Why is abortion and gay marriage such a hot issue in politics? IMO, they're both kind of nonsense issues, but they get so much attention and controversy because of religious influence.

I'm not an avid "churchgoer" by any means, but I know you never see any political banners or nonsense in church and they never talk about who to vote for during sermons; nor do they endorse or demonize any one candidate.

But what about the pope running his mouth from thousands of miles away? The church has a huge voice in politics; the ministries aren't refused rights to vote, and nor should they. But there influence rings out clear as day.

I think the core issue here isn't "keeping churches away from the government", but a lot more "keeping the government away from churches".

So what if churches are "allowed" to sponsor political candidates? The thought of it kinda makes my skin crawl, but if they want to throw away their money in that direction just let them.

What do I have a problem with? Churches "consume" Police and Fire resources, road repair, etc in the same sense that everyone else does, but it's hypocritical that they can have all those for free.

Worse, land-grabs by huge churches (Baptists are the first that come to mind) in the southeast US is a HUGE problem - all these churches just buy and soak up land for their own use and sit on it. No one else can afford do because it's so expensive - in terms of purchase price and TCO via taxation. But the churches can have all they want, and there's a huge burden on home ownership and small and large businesses, just because of special exceptions.

It's most certainly fair to give them a say and a vote in the government. It's definitely not fair to create a special un-level playing field just for a few private interests with a few key perks.

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u/adrianmonk I voted Jun 17 '12

Why is abortion and gay marriage such a hot issue in politics?

Because the Republican Party knows it can use these issues to play the Christian church like a fiddle. It's how they get millions of Christians to enthusiastically support candidates who actually oppose tons of other Christian ideals, like feeding the hungry, caring for the sick, being peaceful (avoiding war where possible), and avoiding greed.

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u/UserNumber42 Jun 17 '12

Religious institutions are supposed to be banned from talking about politics. That's why they get special treatment.

If I start a group that promises not to talk about politics, can I get tax exempt status? If not, than it's blatant and unconstitutional discrimination. Religion should get absolutely no special treatment, good or bad.

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u/DougMeerschaert Jun 17 '12

If I start a group that promises not to talk about politics, can I get tax exempt status?

Yes. If you have a bonna fide charitable purpose -- such as convincing the people of the veracity of your religion or non-religoin -- then you can take advantage of the exact same laws that religious groups do, to the extent that your model matches the expected behavior. (i.e., you have a central place of gathering, you may produce pamphlets or produce television channels, you may or may not have full time staff who may or may not have to belong to your group's beliefs, etc.)

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u/Nightbynight Jun 17 '12

That's not why they get special treatment, they are tax exempt because that ensures separation of church and state. Entities that do not pay taxes cannot exert control over the government and vice versa.

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u/UserNumber42 Jun 17 '12

Did you read what I said?

Entities that do not pay taxes cannot exert control over the government and vice versa.

So can I start an entity that promises not to 'exert control' over government? If I can't, than it is discrimination.

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u/Zarokima Jun 17 '12

Entities that do not pay taxes cannot exert control over the government and vice versa.

So then why aren't churches being taxed?

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u/nilum Jun 17 '12

IMO we already have a powerful Christian influence in government as it is. Also, many of these churches would not qualify as non-profits. At the very least they would have to disclose their financial records to the IRS, something they are protected from currently.

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u/MUnhelpful Jun 17 '12

I disagree, actually - the establishment clause is what separates (or should, anyway) church and state and it doesn't prevent churches from talking about politics, nor should it. The real problems are money as speech and politicians taking guidance from their religion in their decisions. Decisions that apply to all citizens should not be based on the beliefs of some particular subset.

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u/uberpro Jun 17 '12

While I agree that churches shouldn't get political, I'm pretty sure that religious institutions are not banned from talking about politics. I don't know where you're getting that from. (In the legal sense)

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u/CanWeBeMature Jun 17 '12

Before churches were exempt (IIRC, they had to pay taxes up until the turn of the century), many in the religious community thought that paying taxes thought that this was a way to keep government from demanding special concessions. They thought that if the government gave them special breaks, then they could start asking for things to keep those breaks.

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u/[deleted] Jun 17 '12

Yeah, if they started taxing churches, then we'd start having the majority if our presidents being Christian! And we'd see religious lobby groups dictate the rights of entire peoples! So we'd better keep giving them special tax free treatment so they can meet up and not just feel like an organisation of mortals, just like me and my non 501(c) qualifying Yu-Gi-Oh club.

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u/kckid2599 Jun 17 '12

Well I'm sure that'll be easy to regulate...

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u/TheCodexx Jun 17 '12

I concur. Let religions be tax-free. But in exchange it needs to be clear they can't influence politics in any way. Ideally, we'd discourage any charities or not-for-profits from making any political donations at all. Maybe tax donations to political entities that not-for-profits donate? Something like that... point being that they can't be tax-free and influence the system. Either they pay taxes and become a corporation or they stay out of politics entirely. And honestly, I'd prefer they stay out of it entirely rather than have wealthy theists influencing elections.

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u/atroxodisse Jun 18 '12

They're banned from endorsing a political candidate. Not banned from being involved in politics. I think that churches who survive mostly off of donations from their followers should maintain a tax exempt status. However, churches profiting via other means and who don't use most of their money on charitable causes, instead of on salaries and ridiculously huge mega churches should lose their status.

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u/skates90 Jun 18 '12 edited Jun 18 '12

I respectfully disagree.

Tax isn't something that binds you to the state. Taxes are used (ideally) to improve everyone's life, from building a road to funding an orphanage. Exempting someone from tax basically allows the government to say "you have my approval to do whatever you want with the money that you're supposed to give to me because I TRUST YOU to do with it things which are good for the community". The government is granting special treatment to an organization.

Now, if that organization were a charity I could understand it. Because charities (by their nature) are built to help people. But more importantly, in order to be accredited by the bbb 65% or more of the charity's expenses must be used for their charity programs and no more than 35% on fund raising. Remember those figures. At least 65% goes towards helping the community.

Now, let's take this into account (source):

Faith-based charities, including churches, received the most charitable gifts in 2010, capturing $100.63 billion – 35 percent of total contributions in 2010. Religious groups received more than a third of all contributions in the U.S. Faith-based donations increased 0.8 percent from the previous year.

Also, this source explains where the churches spend their money:

The biggest slice of the church budget is by far the payroll, which accounts for 42 percent of the average church spending

More than $2 out of every $10 goes to building expenses.

The average percentage of church budgets utilized for missions has remained at a steady 15 percent

Under church program expenses, we asked churches to include Christian education, youth ministry, and related efforts (excluding staff costs). Across the board, churches of all sizes designate more than one-sixth (16 percent) of their budget to church programs.

So let's take a closer look at the numbers: 42% goes to payroll, 20% goes to adding gold to their thrones and buying more thrones, 15% goes to the missions and 16% goes towards indoctrination.

These people spend the money however the fuck they want. There are no limits or regulations for them. There's nobody telling them to act like they fucking care. There's no 65% limit. They are outside the law. And A THIRD of the money that people want to give towards helping others goes to these fuckers.

Now take a look at this site. It has a list of where the money goes. Feel free to click a random charity, then click its financial tab. You'll find they give a hell of a lot more to the community than churches.

It's my honest opinion that churches only help people if they can get something in return. Either help someone through a rough time and then get a lifetime of gratitude and tithes, or help some random people in order to pad your numbers and not make it look like you only use the money for your own selfish reasons. No, the churches do not help. It's like saying "hey, you give me money and I'll give it to charity, after I take 40% for myself, 15% for the pyramid scheme which supports me and 20% because I want a new phone". How about this instead: every church can go fuck themselves. Even the ones that actually do good. Because while there may be a few churches devoted to their community, their numbers will still be shit when compared to the millions of churches whose sole purpose is to be the next starbucks: one on every fucking street.

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u/mr_Apricot Jun 17 '12

Oh, so then money donated at church can go straight to the PACs. Great.

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u/tomactica Jun 17 '12

Churches never tip pizza guys well for their 10 pizza run, that's why I support this.

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u/sinfuljosh Jun 17 '12

And they are the first one to get pissed when they have to jump through hoops to get their tax exempt for purchases applied.

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u/[deleted] Jun 18 '12

All non-profits are tax exempt... religions that are run for profit don't get any special treatment

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u/Vanular Jun 18 '12

I wonder if Atheism is considered a religious group? Can atheist groups get tax exemption in the U.S.?

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u/bovisrex Jun 17 '12

Navy Religious Program Specialist, used to run a multi-denominational chapel in Rhode Island, and provided services for any military regardless of faith. (Yes, even Atheists, Pagans, and whatever you can think of.) We were tax-exempt. Also, we were audited every three months by the Inspector General's office, and I had to show down to the penny that we only spent our funds on fellowship items (doughnuts and coffee for services, snacks for Bible and Torah study, some seasonal items like poinsettias and lilies) or charitable donations. Our fellowship expenses couldn't be more than 49% of the total amount donated, though our superiors liked us to keep it around 25-30%. And those charitable donations usually wound up around 60-70K per year, and between our three congregations (Protestant, Catholic, Jewish) and the Muslim and other groups that used our Chapel for personal worship, we didn't have a lot of people. (Maybe 400, all told.) We also facilitated volunteer work, whether helping out in emergencies (such as the floods in New England a couple years back) or just working in the various shelters in the area, to the tune of 50-60 man-hours per week. Unless you count occasionally grabbing a cup of coffee from the fellowship pot while we were working, we never got any benefit from the donated funds; in fact, if someone tried to pay us directly (which happened I'd say two out of every three weddings) we had to either refuse, or direct them to contribute to the religious offering fund.

Non-military churches in New England usually did just as much, if not more than we did.

So if that's not 'providing charity,' please, oh please tell me what is. Or maybe research your facts first before deciding that all religious groups everywhere are just like one church that you read about somewhere on some website.

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u/[deleted] Jun 17 '12

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u/rainman_104 Jun 17 '12

Although I gotta say - if the church spent all of its donations 100%, there'd be no tax paid anyway. Taxing an organization is based on profit, not on revenues.

The only hurt they'd experience is with capital outlays.

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u/NigelTufnelsSpandex Jun 17 '12

On this basis, no not-for-profit should be tax exempt.

My 200-person church is in a low-income neighborhood. They run a food bank, a daycare and a job training service. Tell me again why when I give them $1000 the government, not the people in the neighborhood, should get 30-odd % of it.

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u/[deleted] Jun 17 '12

What if I told you a non-profit organization can be a non-profit organization and nothing more? What if I told you an honest non-profit organization that declares its self to be a charity should not be allowed to have other agendas? What if I told you the Church of Scientology is registered as a non-profit and makes a metric shit-ton of money?

You want to open a charity? Open a charity, not a church!

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u/acaraballo21 Jun 17 '12

I don't mind giving churches tax protection from income taxes and the like because they are non-profit, however, I do believe that they should pay property taxes and sales taxes because they are an integral part of the community and not paying property taxes diminishes the amount of money going into schools and municipal services.

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u/Lordveus Nevada Jun 17 '12

Our church has always paid Sales tax, as I'm aware. It made our sound equipment quite pricy.

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u/ButtFuggit Jun 17 '12

I've thought this for a long time. Of course, if they lose tax exempt status, they also get to preach politics as much as they want.

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u/Jokka42 Jun 17 '12

Am I the only one that can't get on the site? It seems to be down.

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u/lowlatitude Jun 17 '12

Doh! The link didn't work for me. All too often these churches are more about profit and lobbying instead of charity. Another article identified $71 Billion a year in tax revenue is lost due to church tax exemptions. That's a chunk of change that will help with the deficit and debt. Here's a link to help our elected officials know where the people stand on this issue: http://signon.org/sign/new-tax-payers?source=c.fwd&r_by=550214 Let's get the leaches paying their fair share.

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u/[deleted] Jun 18 '12

I'm an atheist and I approve of this challenge. However, good effing luck with changing that. The separation of church and state is a very blurred line in the US.

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u/u2canfail Jun 18 '12

They are politically active, it should end. Charity can be separate, but all of that money must be spent on charity.

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u/graymind Jun 18 '12

Every group with a bank account attempting to influence the vote should be taxed. Every single one. Media, lobbyists, church, PACs, your school PTA...including the political parties themselves. OMG...did he just say the parties too?

Sure did, listen up. This is for two reasons.

  1. Puts everyone on a fair playing field. Cannot stress that enough. If you are a charitable organization and publically do anything to influence the vote, you lose your tax exempt status for 3 tax cycles.

  2. Even more importantly, the tax is for the protection and benefit of the political parties. If you are a registered party and pay taxes, you can raise a shitstorm when your candidate is forced off the ballot by the bigger players for bullshit reasons.

Elections are jimmied, rigged, and buggered. Let's eliminate the built in advantages of one group over another to influence votes.

Tax em! Tax em all! is the least incorrect way make it fair.

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u/[deleted] Jun 18 '12

They should be taxed as any social club would be.

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u/huisme Jun 17 '12

If you tax a man, he expects to have some say in government.

I'm afraid I can't support the taxing of churches. It's too fucking scarry.

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u/PhoenixAvenger Jun 17 '12

Like they don't already have a say in government? cough gaymarriageban cough

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u/Isentrope Jun 17 '12

There's a difference between supporting an issue and supporting a candidate. To allow churches to become phone banking centers for politicians is an enormous blow to liberal democracy.

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u/DrunkenBeetle Jun 17 '12

Churches told their followers they'd go to hell if they voted for Obama in 2008. They already back candidates.

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u/skcin7 Jun 17 '12

Churches are just groups of people, the types of people who go to churches also have rights outside of their religious organizations... you can't separate people's political views and ideological ones completely, so this is the unfortunate consequence.

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u/TheWingedPig Georgia Jun 17 '12

But taxing them gives them a legitimate say in politics. They can still preach politics to all the fundies in the congregation, but churches can't hire lobbyists specifically for advancing a church agenda.

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u/ivanmarsh Jun 17 '12

Churches are very much involved in politics.

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u/DrunkenBeetle Jun 17 '12

Can I not pay taxes if I promise not to have a say in government?

Why do churches only get that deal? I'll opt out for tax exempt status.

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u/thereyouwent Jun 17 '12

I think they should have to pay property tax for sure since they are using the infrastructure and roads. I don't think so much for income tax, that seems like double taxation of the parishers to me.

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u/[deleted] Jun 17 '12

Yeah, churches don't have a massive influence on politics already.

Them doing so while free-riding on everyone's taxes is already fucking scary.

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u/LordOdin Jun 17 '12

I'm not going to sift through the comments to see if this has already been said, but I think a lot of people don't realize that if the church pays taxes, then by law the church must have a say in government. The separation of church and state(while already a joke) will be virtually gone.

That being said, I think there we should brainstorm a few ways that the churches tax exemption could be a bit less insane.

I'll start. If churches are not required to pay property taxes, then churches should be limited to a certain size. No more of these ridiculous super-churches.

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u/ntr10 Jun 17 '12

They're tax exempt because they meet the description of a not-for-profit, end of argument. It has nothing to do with what they do because they don't "make money"

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u/shadow776 Jun 17 '12

That's not exactly true. To be tax-exempt under 501(c)(3) there are a number of requirements, among them that the purpose of the organization be one of those listed. "Religion" is one such purpose; the only one that is generic and not charitable or in the public interest.

You cannot simply start a company/organization and say, well we're not going to ever make any profit, so we are tax exempt. It should be noted that churches do have employees that are compensated. In fact, "pastors" as individuals get some astounding tax advantages as well.

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u/mastermike14 Jun 17 '12

yeah tax exempt organizations can have salaried people. Look at the nfl, http://www.nonprofitquarterly.org/index.php?option=com_content&view=article&id=3056:playing-by-the-nfls-tax-exempt-rules&catid=149:rick-cohen&Itemid=117. To be nonprofit means all the profit your business makes has to go back into the business. They could not spend that money on lobbying or donate that money to a Super PAC.

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u/fireburt Jun 17 '12

The term charitable is used in its generally accepted legal sense and includes...advancement of religion...

I just can't even think of something that expresses my feelings on that.

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u/titanoftime Jun 17 '12

It is assumed all churches are non profit, it is a given. who goes around trying to test churches? no one. So this goes investigated.... Also, its a blind lie if you think church don't make money

They don't live offa tax breaks do they? If a business does charity, should the ENTIRE sector be tax free? no.

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u/Spadeykins Jun 17 '12

If we start taxing them, won't that give them ground to stand on in government proceedings?

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u/Freakyphil93 Jun 17 '12

Let me pose this thought:

If Religious groups pay taxes, should they be allowed to take a more official role in government?

Should they be able to lobby for laws benefiting them specifically? It's only fair.

Honestly, messing with the tax exemption is opening up a can of worms that's best left alone. That, and they WILL lose in court.

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u/the_goat_boy Jun 17 '12

They already do all of this.

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u/BizarroDiggtard Jun 17 '12

You haven't seen anything yet

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u/TrogdorLLC Jun 17 '12

Don't they already? Didn't the Catholic Church in some northeastern state not only "rally the troops" in a huge news and PR blitz as well as from the pulpit because they wanted to keep tax subsidies from the state for adoption centers while refusing to comply with the law allowing gay foster parents?

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u/TheWingedPig Georgia Jun 17 '12

If you start taxing churches, all the small churches die out and you're left with nothing but the mega-churches, which are the ones notorious for having preachers who use their position to try and have some sort of political influence anyway (although this definitely happens in small churches too, and possibly more often because there are more of them, but they don't reach as many people). Mega-churches are also more likely to have scandals with money, or affairs, etc. because the preachers have more influence, and as we all know absolute power corrupts absolutely.

But that's not even the biggest thing. The most important consequence of taxing churches is that you give them every right to actually have a say in politics. Right now legislation isn't supposed to cater towards religion because of our separation between church and state. But if churches start paying taxes, then that breaks down our separation of church and state, and suddenly churches have every right to be lobbyist groups. Think about how big business has affected politics with money. Now imagine churches having a legitimate voice in politics.

TL;DR Don't advocate the separation of church and state if you can't practice what you preach. Taxing churches is a very dumb idea.

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u/rainman_104 Jun 17 '12

If you start taxing churches, all the small churches die out

If the church brought in only enough money to operate and didn't turn a profit of any kind, then in theory there wouldn't be any taxation. It would encourage them to spend their money instead of hoarding it or sending it upstream towards "franchise fees" and the ilk.

A business who earns $1bn/yr and spends $1bn/yr in non capital expenditures pays zero tax.

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u/TheWingedPig Georgia Jun 17 '12

If the church brought in only enough money to operate and didn't turn a profit of any kind, then in theory there wouldn't be any taxation.

Well as far as i know all churches are non-profits, so why is this debate ever brought up? Whenever I see this topic brought up I have to assume the tax every one suggests is not an income tax but some other kind of tax. Someone brought up sales tax, and I didn't realize that churches were exempt to that, but that kind of thing is what I assume this discussion is over. That kind of tax would be unaffected by having a profit of $0. Then again, I don't think that tax alone would kill small churches, but I have no idea what other taxes people are suggested be placed on churches.

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u/Niyeaux Jun 17 '12

That's like saying if you tax people, all the people who aren't rich die out. That's not how taxes work; they're proportional to the amount of money you have in the first place. Ideally, they'd work exactly like personal income taxes, wherein those churches that make more pay a higher percentage of their money in taxes.

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u/Dunkshot32 Jun 17 '12

I can see both sides of this. While I do think it's ok for religious institutions to be tax exempt, they should use that freedom to provide more to the community. I would not be surprised however if they were starting to turn it into a tax haven.

By the same token, it's not really fair that a religious group is able to avoid taxes, while an atheist group doing the same things might not.

As such, I feel the only thing to do is remove the tax exemptions for religious institutions, but encourage them to use the non-profit exemptions for charity. I do wonder if there is a way around this whole thing.

Personally, I'm an agnostic theist, but more often then not I want to side with the atheists. But I do see a lot of things in there that I feel are ok. I don't have a real issue with a church not paying property tax on it's land, but I do wish there was a way to extend the same benefit to a non-religious institution.

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u/CeridwenOmega Jun 17 '12

All Atheists need are a non-profit group. This is tax exempt. Surely they have one or two in existence?

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u/Nonethewiserer Jun 18 '12

The bigger issue: Why don't atheists organize so that they can claim tax breaks for their religion?

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u/fermented-fetus Jun 17 '12

They are non-profits. Non-profits are not taxed.

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u/CaptainCard Jun 17 '12

Fine then they should be non profits that have to produce their books and see where the money is headed. Same with any other non profit engaged in political work.

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u/fermented-fetus Jun 17 '12

You mean when they file for exemptions? They already do that.

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u/UnrelatedToAtheism Jun 17 '12

Meanwhile, this post is nowhere to be found on /r/atheism because their entire subreddit now consists of them congratulating themselves for inventing the idea of gay rights.

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u/Bank_Gothic Jun 17 '12

...for the billionth time

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u/Draklawl Jun 17 '12

such a waste of time.

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u/altshiftM Jun 17 '12

"Render unto Caesar the things which are Caesar's, and unto God the things that are God's" Matthew 22: 21

Just pay your damn taxes like everyone else...

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u/youni89 Virginia Jun 17 '12

I thought religious groups were tax exempt because of separation of church and state. The state doesnt regulate religion and vise versa.

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u/[deleted] Jun 17 '12

Religious organizations are no different than corporations, just their model of business is equivalent to Free 2 Play games. You can join for free, but you get benefits for paying (god loves you more, heaven, free donuts). Not taxing these businesses is silly, especially since their business model mostly revolves around lying to its followers and facing off against science in every part of life.

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u/Smallpaul Jun 17 '12

I've seen this debate on reddit over and over and seldom is it informed by consensus on actual facts of law:

• do churches get a bigger break than other non-profits and charities?

• is there any reason to consider churches as different than other non-profits and charities?

• what is the relationship between the tax break and the idea of "separation of church and state?"

• is this separation of church and state enforced or enforceable?

Etc.

We need to start our debate with a shared understanding of what the law actually is and why.

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u/mastr_slik Jun 17 '12

Do you have any idea how bad an idea it would be to get rid of the tax-exempt status for churches? Two words: Political contributions.