News Should all religions in the US be tax-exempt?

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The discussion centers on the historical context of religious freedom in the U.S. and its evolution into tax exemptions for religious organizations. Concerns are raised about the financial impact of these exemptions on local communities, particularly in Waterville, Maine, where valuable properties owned by churches contribute to high property taxes for residents. The debate highlights the disparity between small, community-serving churches and large megachurches that operate like businesses without tax obligations. There is a call for greater transparency and uniformity in tax regulations for all non-profits, as current IRS rules allow churches to avoid financial disclosure. The conversation ultimately questions whether all religious organizations should maintain tax-exempt status, given the potential for abuse and inequality in the system.
  • #31
Proton Soup said:
sounds like you have a gospel truth of your own. maybe if you put out some signs, set up a tent and some chairs, people would come and listen to what you have to say.

Interestttinggg... In fact if I had the time I would do it, only it wouldn't be a tent, it'd be a lake front cottage and tax-free, just like my wage.

Since you came off this way towards my post I assume you would also be of the opinion that schools teach 'gospel truth' too?

What a rediculous response this was.
 
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  • #32
zomgwtf said:
What a rediculous response this was.

don't feel bad
 
  • #33
Pengwuino said:
depending on the major...

but no, you pay to go to Harvard... you pay like mad.

If you can afford to, you do. I may be wrong about this, but I don't think Harvard keeps people out based on ability to pay. They give out a lot of financial aid.

In fact, I just went to their website. http://www.fao.fas.harvard.edu/icb/icb.do

Our new financial aid policy has dramatically reduced the amount families with incomes below $180,000 are expected to pay, and parents of families with incomes below $60,000 are not expected to contribute at all to college costs. We no longer consider home equity as a resource in our determination of a family contribution, and students are not expected to take out loans, which have been replaced by need-based Harvard scholarship. This new program has reduced the cost to middle income families by one-third to one-half, making the price of a Harvard education for students on financial aid comparable to the cost of in-state tuition and fees at the nation’s leading public universities.

I emphasized a few key points.
 
  • #34
Hurkyl said:
Turbo: Can you provide citation for your main concerns? It sounds more like rumor and fear mongering rather than confirmed fact.I did some brief searching, and came across this document:
From page 3:

To qualify for tax-exempt status, such an
organization must meet the following requirements
(covered in greater detail throughout this publication):
  • the organization must be organized and operated
    exclusively for religious, educational, scientific, or other
    charitable purposes,
  • net earnings may not inure to the benefit of any
    private individual or shareholder,
    [*] no substantial part of its activity may be attempting
    to influence legislation,

    [*] the organization may not intervene in political
    campaigns
    , and
  • the organization’s purposes and activities may not
    be illegal or violate fundamental public policy.
The Archdiocese of Portland (controlling authority of the Roman Catholic church in Maine) spearheaded the drive to repeal Maine's same-sex marriage law. The church took special collections for Stand For Marriage Maine and organized petition drives to repeal the same-sex marriage law. They were not the only church to support SFMM and try to repeal the law, but they were the most prominent. Because they are a church, they are not subject to the same reporting that other politically-active organizations are. Googling "Diocese of Portland" and "anti-gay" for instance, will get you more hits than you'll ever care to read. Some of the more acceptable ones (per forum rules) are newspaper articles that are now archived and unavailable for free. I don't know the status of the lawsuit, but there was a suit filed aimed to remove the church's tax-exempt status because of their political activities.

The National Organization for Marriage funneled $1.9M into the Question 1 drive, and has refused to identify donors, like any other political organization that raises more than $5K to support a ballot initiative. So while the church was providing untraceable cash donations and "boots on the ground" to collect petition signatures, NOM was shoveling money, and still intends to keep the money untraceable. They have refused to identify donors, and claim that they will appeal all the way to the Supreme Court.
http://www.kjonline.com/news/anti-gay-marriagegroup-seeks-endto-fundraising-probe_2010-06-20.html
 
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  • #35
How come buildings of god(s) need to be tax-exempt anyways? I'm sure that if the revelations given by the church were true and useful the building would continue to exist regardless of taxes?

I don't think it's a valid argument that we need to not tax churches in order to save them from dying off. If religions are going to die off then obviously they aren't worthy of continued existence, we shuldn't give them a break. In fact they should have the TOUGHEST times because they have the most to prove.

I don't think religious buildings should be compared to educational buildings or charities for the simple reason that one indoctrinates a faith and one is truly just trying to help society without bigotry or special treatment to certain people based on belief. If you think churches should be tax free based simply on the fact that they 'help out in the community' then why don't you start a rotary international club in your community? Or the lions one? Even freemasons?
 
  • #36
turbo-1 said:
The National Organization for Marriage ...
Your beef with political action committees belong in another thread where they aren't obscuring what is ostensibly the topic of this thread -- tax-exemption as it relates to religious groups.
 
  • #37
Hurkyl said:
Your beef with political action committees belong in another thread where they aren't obscuring what is ostensibly the topic of this thread -- tax-exemption as it relates to religious groups.
Please feel free to move the post or delete the reference to NOM if you wish. My point is that the church provided manpower and cash (about 1/2 million dollars) to get proposition 1 on the ballot and they were aided by some very wealthy out-of-state donors. It appears that the church was acting as a PAC, in violation of the IRS rules regarding tax-exempt status.
 
  • #38
I dug around archived materials for a bit, and have found that as of 2007, 35% of the property in the city of Waterville, ME was tax-exempt. My wife and I would have liked to live there at one point, but the property tax rate was excessive. That 35% is not all owned by religious groups. There are two well-heeled private colleges and 3 hospitals in that city, as well as some parochial schools.
 
  • #39
Really, I think I'm totally confused as to what your point is.

Let me ask a specific question: do you have any objection to a religious group being tax-exempt if they adhere to the bullet points I quoted?

If not, then I think the topic is settled?
 
  • #40
Hurkyl said:
Really, I think I'm totally confused as to what your point is.

Let me ask a specific question: do you have any objection to a religious group being tax-exempt if they adhere to the bullet points I quoted?
No.

But as I have tried to show, the church funneled money into a political campaign against same-sex marriage and organized the faithful to collect petition signatures for the purpose of overturning a law passed by the legislature and signed into law by the governor (who is himself Catholic, BTW). That level of political activism is specifically banned in the list of bullet-points you posted. I bolded the two points that were most relevant to the discussion.
 
  • #41
At some point, I think we have to re-think the granting of tax-exempt status to religious groups that engage in political activism. Tax-exemptions for religious groups doesn't logically flow from the separation of church and state, IMO. The Prop 1 campaign of 2008 was just one glaring example of why some groups may not deserve tax exemptions.
 
  • #42
I don't mind if the charitable functions of a religious group are tax exempt, but I see no reason why a religious organization should be tax exempt.

Some religious groups do great charitable work. Many do not do anything charitable or even help in their local community. Why, exactly, should these people be tax exempt? I think it's time to stop the blanket tax protection for anyone that calls themself a religion. It's ridiculous how easy it is to proclaim yourself a religious organization.

I'm a bit bummed, my scapular says "made in China", my best friend bought it for me at her catholic church. A bit off topic, I found it while unpacking some boxes from my recent move. Why are they outsourcing the manufacture of Christian religious objects to China of all places? I doubt the factory is Christian.

Surely the church could have opened a little workshop for some local handicapped or homeless people to print these up?
 
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  • #43
turbo-1 said:
I bolded the two points that were most relevant to the discussion.
If the bullet points are violated (and there is not some further relevant law), then they shouldn't get tax-exempt status. Case closed.

It's confusing to me that you seem to be putting a lot of effort into arguing that tax-exempt status should not be granted to organizations that the law says should not be granted tax-exempt status. And that you are trying to turn it into an issue about religion.
 
  • #44
Let me ask you if you feel that the Westboro Baptist Church deserves tax-exempt status.
 
  • #45
I have no idea.

Is it worth thinking about? I don't see why, if you're content with the laws that dictate whether or not an organization can have tax-exempt status.
 
  • #46
Well, turns out I'm up for a brief round of devil's advocate.

Their campaigns seem to target public opinion, spread the word, that sort of thing. So unless their message happens to fall in the realm where we the Government is allowed to legislate religious content, they start undertaking illegal activities, or they start operating for profit, then yes, they should enjoy a tax-exempt status.
 
  • #47
Pengwuino said:
depending on the major...
And can one not similarly say " ...depending on the church, and depending on the nature of the specific services it provides ..."?
 
  • #48
Hurkyl said:
Well, turns out I'm up for a brief round of devil's advocate.

Their campaigns seem to target public opinion, spread the word, that sort of thing. So unless their message happens to fall in the realm where we the Government is allowed to legislate religious content, they start undertaking illegal activities, or they start operating for profit, then yes, they should enjoy a tax-exempt status.
I agree. To the extent that any church deserves tax-exempt status, so does Westboro Baptist. So also, would any extremist madrasa that is careful about how it walks the legal line (by knowing and sticking within its amendment limitations).
 
  • #49
turbo-1 said:
Should they all be exempt from taxation?
No, they should all have to pay property, etc. taxes.
 
  • #50
ThomasT said:
No, they should all have to pay property, etc. taxes.
My feeling, too. If an organization is a charitable enterprise, they can take a load off public services, and they deserve to be tax-exempt. I certainly don't think that the Salvation Army needs to be taxed because they do so much good, and they target their efforts locally, using volunteers, as much as possible.

Most churches do very little in this regard, apart from tag sales, etc. Why should they get a free ride? Local churches funnel money to their franchises, and the mega-churches make their pastors into millionaires with no accountability.

When you have large enterprises taking cash income and funneling it into unaccountable accounts, that is generally considered money-laundering by the Feds. Pull away the inviolable blanket of "faith" attributed to churches in the US, and there is a large underground economy that needs some attention.
 
  • #51
I think this claim that churches should have to earn their tax-exempt status by doing good for the local community is a red herring. The reason for the tax exemption is to keep the government from promoting some religions over others via the tax code.

Frankly, I'd rather put up with the abuses of some churches than giving Congress the power to tax churches. I can only imagine what kinds of taxes would have been passed after 9/11 targeting Muslims if Congress had that power.
 
  • #52
vela said:
I think this claim that churches should have to earn their tax-exempt status by doing good for the local community is a red herring. The reason for the tax exemption is to keep the government from promoting some religions over others via the tax code.

Fair enough. But there's also reason to be concerned about the power of, e.g., the Church of Scientology over local governments, which seems to cut in the other direction. Thoughts?

I'm primarily interested in arguments of what is *right* or *desirable* rather than what might or might not be allowable under a particular interpretation of the legal system as it stands now.
 
  • #53
vela said:
The reason for the tax exemption is to keep the government from promoting some religions over others via the tax code.
Is that really the reason? I hadn't heard that argument before. I always thought the argument was one along the lines of promoting the common good.

Frankly, I'd rather put up with the abuses of some churches than giving Congress the power to tax churches. I can only imagine what kinds of taxes would have been passed after 9/11 targeting Muslims if Congress had that power.
I see it being an obvious violation of the Separation clause if some religious organizations were taxed at different rates than others, and therefore can't imagine it would have any hope of surviving judicial challenge. I don't, therefore - at least not yet - see that making them tax-exempt is a necessary means of protecting Separation (I'm not even convinced it is a sufficient means). But then, maybe I'm just not thinking as creatively as a determined Congressperson (plus staff) might.
 
  • #54
Gokul43201 said:
II see it being an obvious violation of the Separation clause if some religious organizations were taxed at different rates than others, and therefore can't imagine it would have any hope of surviving judicial challenge. I don't, therefore - at least not yet - see that making them tax-exempt is a necessary means of protecting Separation (I'm not even convinced it is a sufficient means).
If one or more of the televangelical empires were targeted, I would expect their tax-exempt status would fall quickly, leading to a bulk review of the tax-statuses of all "religious" non-charitable organizations at higher court levels.
 
  • #55
turbo-1 said:
If one or more of the televangelical empires were targeted, I would expect their tax-exempt status would fall quickly, leading to a bulk review of the tax-statuses of all "religious" non-charitable organizations at higher court levels.
Ah, I see the merit in that argument. My previous objection, therefore, is withdrawn.
 
  • #56
turbo-1 said:
If one or more of the televangelical empires were targeted, I would expect their tax-exempt status would fall quickly, leading to a bulk review of the tax-statuses of all "religious" non-charitable organizations at higher court levels.

They still wouldn't pay any tax - just like corporations they would have their headquarters in an offshore tax haven.
Vatican city is hardly likely to charge the catholic church corporation tax!
 
  • #57
Gokul43201 said:
Is that really the reason? I hadn't heard that argument before. I always thought the argument was one along the lines of promoting the common good.
Here's a summary of a 1970 Supreme Court ruling about the religious tax exemptions:

http://atheism.about.com/library/decisions/tax/bldec_WalzTaxComm.htm

It looks like there are several reasons recognized for the exemptions: historical, common good, and constitutional.
I see it being an obvious violation of the Separation clause if some religious organizations were taxed at different rates than others, and therefore can't imagine it would have any hope of surviving judicial challenge. I don't, therefore - at least not yet - see that making them tax-exempt is a necessary means of protecting Separation (I'm not even convinced it is a sufficient means). But then, maybe I'm just not thinking as creatively as a determined Congressperson (plus staff) might.
A justification for a blanket exemption is to avoid the possibility of messing with the tax code to tax some religious organizations more than other through non-transparent methods. Obviously, if a law targeted, say, the Catholic church by name, it would quickly be rejected by the courts as violating the First Amendment. On the other hand, the government could achieve the same result by jacking up taxes in regions which just happen to have a large concentration of Catholic churches if churches weren't exempt.
 
  • #58
vela said:
Obviously, if a law targeted, say, the Catholic church by name, it would quickly be rejected by the courts as violating the First Amendment. On the other hand, the government could achieve the same result by jacking up taxes in regions which just happen to have a large concentration of Catholic churches if churches weren't exempt.
Agreed. And thanks for the link.
 
  • #59
CRGreathouse said:
Fair enough. But there's also reason to be concerned about the power of, e.g., the Church of Scientology over local governments, which seems to cut in the other direction. Thoughts?
I think this is part of the general problem with the influence of any special interest over the local, state, and federal government, but I can certainly understand why people get angry with a church trying to influence elections while not having to play by the same rules as other organizations. I certainly felt that way here in California when Prop. 8 passed largely due to the efforts and backing of the Mormon and Catholic church.
I'm primarily interested in arguments of what is *right* or *desirable* rather than what might or might not be allowable under a particular interpretation of the legal system as it stands now.
 
  • #60
I don't have a problem with their tax-exempt status, but I see no compelling reason that high-earning religious organizations shouldn't have to file public 990s like every other non-profit does. They could then be held to the same anti-wealth hording rules that apply to foundations, and furthermore, it would lend transparency to their transactions, which is the basic principle behind why we make public corporations and governments release GAAP-compliant financial statements at regular intervals. How many people need to be found using churches for money laundering before we end this?
 

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