General Discussion
In reply to the discussion: End the Tax Exempt Status of Churches! [View all]Jeff In Milwaukee
(13,992 posts)And there is a move afoot (troubling on one level, but still interesting) to require that all tax-exempt organization prove that they provide services to the public that are of a value equal to the amount of their tax exemption.
Bear in mind that even non-profit organizations (including churches) with paid staff DO pay payroll taxes like any other employer.
Being exempt from income tax is not a big deal; any entity (including a for-profit company) pays taxes on the difference between income and expenses. Most non-profits are strapped for cash (and have no income as a result), and even mega-churches have mega-operating expenses that would leave the "income" relatively modest.
The big thing is sales tax and property taxes.
And I think it's not asking too much to tell a tax exempt organization that, if you're getting $20,000 in abated taxes, that you prove that you're providing at least $20,000 in services to the community.