General Discussion
In reply to the discussion: Does anyone else think it's time to tax the churches? [View all]dawg
(10,777 posts)The notion that we could all pay 3% if only the churches were taxed is not true. Most churches would show a taxable loss and therefore continue to pay no tax at all.
See, in addition to income, churches also have expenses. The maintenance and utilities on that cathedral in the photo? Deductible. Depreciation of the cathedral? There's a deduction for that too! Pastor and staff salaries? Deductible. Travel and appearance expenses for "evangelists"? Deductible.
Some clever CPA or tax attorney might even succeed in deducting that double-breasted suit and Rolex as a "costume" expense.
It would be an easy matter for most churches to avoid taxation, even if they were reclassified as taxable entities. Ironically, the only churches who might actually pay taxes would be the ones who were actually trying to do the right thing. (i.e. helping people without getting a receipt or canceled check)
This is the kind of delusional thinking that conservatives do all the time. We only do it on rare occasions.
BUT THIS IS WHAT WE SHOULD BE DOING:
Churches that actively involve themselves in politics should lose their tax-exempt status. And by that, I don't mean they would be subject to tax themselves, only that their donors WOULD NOT get a charitable deduction for their contributions. If you really want to get at a church, this is the way. Without the ability to accept deductible contributions, the money dries up and moves somewhere else pretty fast.