Clergy tax break unconstitutional - That's 3 FFRF victories in 8 days! [View all]

[HAB911]

A federal judge for a second time has ruled in favor of the historic challenge by the Freedom From Religion Foundation of a housing allowance in the tax code that uniquely privileges clergy.

At issue is the constitutionality of 26 U.S.C. § 107(2), a provision in the tax code that excludes from gross income a housing allowance paid to a "minister of the gospel."

Rep. Peter Mack, sponsor of the 1954 law challenged by FFRF, argued that ministers should be rewarded with a clergy allowance for "carrying on such a courageous fight against this [a godless and anti-religious world movement]." The clergy allowance is not a tax deduction but an exemption—allowing housing allowances paid as part of clergy salary to be subtracted from taxable income.

In 2013, U.S. District Judge Barbara Crabb ruled in FFRF's favor in its original challenge. Crabb's finding sent "shockwaves through the religious community," according to the Evangelical Council for Financial Accountability, which bitterly fought the ruling, along with just about every religious denomination in the country.

https://ffrf.org/news/news-releases/item/30540-ffrf-wins-major-housing-allowance-challenge-again