Wednesday, March 25, 2015

Should churches continue to be tax-exempt? - Dan Hickey

Since the formation of the United States of America, and officially since 1894, churches have been tax-exempt in all 50 states.  Specifically, they do not pay property taxes and their donations are tax-deductible.  This raises the question of whether or not this follows or goes against the separation of church and state.

One could argue that this adheres to the First Amendment because it completely separates religion and government.  Furthermore, since 1954, laws against the endorsement of political campaigns by churches has existed, with the government revoking the exemption benefits of several churches as a result.

On the other hand, people may argue that this gives churches special treatment in not taxing them.  A fair argument is found in that forgoing taxes on such a large sector is similar to subsidizing it.  The government is giving up billions of dollars worth of taxes each year to continue this policy, as its deficit still looms large.  An interesting case is that the Church of Scientology lost its privileges because the IRS viewed it as an entertainment business.

No comments:

Post a Comment