General Discussion
In reply to the discussion: End the Tax Exempt Status of Churches! [View all]el_bryanto
(11,804 posts)I'm not a specialist in business tax law, but I believe that if they make money, and they do not have tax-exempt status, they are required to pay taxes on that income even if they don't make a profit at the end of the year. They are also required to pay taxes on purchases; tax exempt organizations have a tax-exempt notification they can show to get waived taxes on certain purchases.
This is a bit like saying poor people don't pay taxes - well they might get back their income taxes in a refund at the end of the year, but they still pay sales tax, they still pay payroll taxes, and they might well pay property taxes (if they own property (in the case of the rural poor)) - even if their income doesn't justify paying any income tax.
Bryant