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Thread: Religion and Taxation - Why is it exempt?

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    Religion and Taxation - Why is it exempt?

    First of all, I'm not sure of the precise situation in any country but is there some sort of constitutional protection of religion from taxation in the US?
    I don't really understand why religions are exempt from taxation?

    The likes of the Vatican and some televangelists really get my goat with the amount of money they acquire. All the while, many of religions' most devout followers are amongst the poorest in society.
    Why do they get a free pass on this?


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    Sedentary Rocker Dolly's Avatar
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    (I'm speaking from a United States POV only)

    In general I believe the basis for tax-exempt status for churches and religious organizations is based on the Constitution, specifically the First Amendment:
    Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof;
    As an example, if churches were taxed, what if a predominately Protestant Congress passed laws taxing Catholic and Muslim churches at 25%, and Protestant churches at 5%? That would be tantamount to a breach of the First Amendment. There are many other examples I'm sure you can think of. We currently have many laws that push that boundry as it is; taxation would just be another rallying cry for the faux-oppressed.

    But the Internal Revenue Code is complex, and there are churches and religious organizations that also push the boundries of 501(c)(3) regulations (i.e. they cheat), so those televangelists you see quite probably pay a lot to accountants and lawyers in order to keep from paying federal income tax.

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    Quote Quote by: Dolly View Post
    (I'm speaking from a United States POV only)

    In general I believe the basis for tax-exempt status for churches and religious organizations is based on the Constitution, specifically the First Amendment:

    As an example, if churches were taxed, what if a predominately Protestant Congress passed laws taxing Catholic and Muslim churches at 25%, and Protestant churches at 5%? That would be tantamount to a breach of the First Amendment. There are many other examples I'm sure you can think of. We currently have many laws that push that boundry as it is; taxation would just be another rallying cry for the faux-oppressed.

    But the Internal Revenue Code is complex, and there are churches and religious organizations that also push the boundries of 501(c)(3) regulations (i.e. they cheat), so those televangelists you see quite probably pay a lot to accountants and lawyers in order to keep from paying federal income tax.
    You are misreading the 1st Amendment. Do you not understand the word "establishment"? Taxing all religious organizations would not be the government "establishing" one religion in favor of another. Of course we already know that our government favors xianity.

    Your examples of taxing the various and sundry xian cults differently is poor. You might as well have said that a protestant congress could ban catholicism.

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    Troll Slayer NoJingoLingo's Avatar
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    Quote Quote by: Grogybear View Post
    First of all, I'm not sure of the precise situation in any country but is there some sort of constitutional protection of religion from taxation in the US?
    I don't really understand why religions are exempt from taxation?

    The likes of the Vatican and some televangelists really get my goat with the amount of money they acquire. All the while, many of religions' most devout followers are amongst the poorest in society.
    Why do they get a free pass on this?
    To be honest, I have no idea why churches/religious organizations are tax exempt in the USA. Other than the religious of our country using it's power to get it's way.

    Coalition to Unchain Dogs - video

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    Quote Quote by: Dolly View Post
    As an example, if churches were taxed, what if a predominately Protestant Congress passed laws taxing Catholic and Muslim churches at 25%, and Protestant churches at 5%? That would be tantamount to a breach of the First Amendment. There are many other examples I'm sure you can think of. We currently have many laws that push that boundry as it is; taxation would just be another rallying cry for the faux-oppressed.
    I asked "why aren't they taxed", not "why don't Protestant churches pay tax, but less than other denominations".


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    The law is about fairness and justice, not keeping churches exempt from the same rules everyone else has to follow. So long as the tax rate is maintained at the same level for all religious organizations, regardless of their beliefs, there should be nothing that violates the spirit, if even the letter, of the constitution.


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    Sedentary Rocker Dolly's Avatar
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    I asked "why aren't they taxed", not "why don't Protestant churches pay tax, but less than other denominations".
    I'm sorry you're unfamiliar with the concept of 'an example'.

    Quote Quote by: NoJingoLingo View Post

    Your examples of taxing the various and sundry xian cults differently is poor. You might as well have said that a protestant congress could ban catholicism.
    It very well could, in effect 'ban' Catholicism, if it began to tax the Catholic church at 99%.

    As for my 'misreading', apparently the IRS has misread it also.
    From IRS Publication 1828:
    Congress has enacted special tax laws applicable to
    churches, religious organizations, and ministers in recognition
    of their unique status in American society and
    of their rights guaranteed by the First Amendment of
    the Constitution of the United States. Churches and religious
    organizations are generally exempt from income
    tax and receive other favorable treatment under the tax
    law; however, certain income of a church or
    religious organization may be subject to tax, such as
    income from an unrelated business.


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    Troll Slayer NoJingoLingo's Avatar
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    Quote Quote by: Dolly View Post
    I'm sorry you're unfamiliar with the concept of 'an example'.



    It very well could, in effect 'ban' Catholicism, if it began to tax the Catholic church at 99%.

    As for my 'misreading', apparently the IRS has misread it also.
    From IRS Publication 1828:
    Yes I would agree that the IRS is misreading the 1st amendment. Considering we are talking about the IRS, does that surprise you? It's the IRS...

    Misinterpreting, that would be the correct term.

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    Quote Quote by: Dolly View Post
    I'm sorry you're unfamiliar with the concept of 'an example'.
    Yes, but an example of an argument I'm not making...


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    Sedentary Rocker Dolly's Avatar
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    Quote Quote by: NoJingoLingo View Post
    Yes I would agree that the IRS is misreading the 1st amendment. Considering we are talking about the IRS, does that surprise you? It's the IRS...

    Misinterpreting, that would be the correct term.
    I simply used your term.

    It seems the USSC has so far interpreted the meaning as it stands.

    "Some people are like Slinkies... Not really good for anything, but they still bring a smile to your face when you push them down a flight of stairs."

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    Sedentary Rocker Dolly's Avatar
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    Quote Quote by: Grogybear View Post
    Yes, but an example of an argument I'm not making...
    You aren't making any argument. You asked:

    ... is there some sort of constitutional protection of religion from taxation in the US?
    I don't really understand why religions are exempt from taxation?
    Why do they get a free pass on this?
    I tried to explain how the Constitution and religion are related; I gave an example of one reason why churches might be exempt from Federal income tax; and as for why they are giving a 'free pass'...they don't have a free pass. There are taxes they do pay (payroll taxes, tax on income from unrelated business, certain property taxes).

    If you're truly interested in answers to your questions, and don't care for the ones I've provided, I suggest you make use of Google.

    "Some people are like Slinkies... Not really good for anything, but they still bring a smile to your face when you push them down a flight of stairs."

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    Quote Quote by: Dolly View Post
    I tried to explain how the Constitution and religion are related; I gave an example of one reason why churches might be exempt from Federal income tax.
    What I meant was that your example is not a reason for exemption of tax per se, but of taxing different religions different amounts. I didn't even think of that or mention anything like it because its got nothing to do with the more general question.

    So you're saying Priests/etc.. pay income tax on their "salary" or whatever it is they receive?


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