Why is the church tax-exempt?

[JAStewart]

Just a simple question really, why is the church exempt from paying tax? Are all religious structures thus?

I don't like that they don't pay tax, I don't believe that religion should get any special privileges in society, it should just be like the rest of us.

[Autolite]

Just a simple question really, why is the church exempt from paying tax?

This I don't know, but it's understandable why it remains tax exempt. Could you imagine what would happen to the political career of any one who attempts to reverse the exemption???

[Rob Lister]

Just a simple question really, why is the church exempt from paying tax? Are all religious structures thus?

I don't like that they don't pay tax, I don't believe that religion should get any special privileges in society, it should just be like the rest of us.

They are not tax-exempt because they are a church, they are tax-exempt because they are a non-profit organization. Same as JREF.

[Lothian]

They are not tax-exempt because they are a church, they are tax-exempt because they are a non-profit organization. Same as JREF.Close.

They are exempt because they are a non-profit organization and they are a church.

Only certian non profit organisations can be charities.

The Charities Act (http://www.charitycommission.gov.uk/spr/corcom1.asp)sets out the following descriptions of charitable purposes:

a) the prevention or relief of poverty;

b) the advancement of education;

c) the advancement of religion;

d) the advancement of health or the saving of lives;

e) the advancement of citizenship or community development;

f) the advancement of the arts, culture, heritage or science;

g) the advancement of amateur sport;

h) the advancement of human rights, conflict resolution or reconciliation or the promotion of religious or racial harmony or equality and diversity;

i) the advancement of environmental protection or improvement;

j) the relief of those in need, by reason of youth, age, ill-health, disability, financial hardship or other disadvantage;

k) the advancement of animal welfare;

l) the promotion of the efficiency of the armed forces of the Crown or of the police, fire and rescue services or ambulance services;

m) other purposes currently recognised as charitable and any new charitable purposes which are similar to another charitable purpose.

[Paul C. Anagnostopoulos]

The reason one wants churches to be tax exempt is so that they do not have any basis to request special treatment from the government.

~~ Paul

[tsg]

The reason one wants churches to be tax exempt is so that they do not have any basis to request special treatment from the government.

You mean like the kind I get?

Oh wait, I don't.

Not having to pay taxes is special treatment.

[ponderingturtle]

They are not tax-exempt because they are a church, they are tax-exempt because they are a non-profit organization. Same as JREF.

And they qualify for non profit status with out needing to meet many of the requirements for non religious organizations as well as get additional exemptions because they are a church.

So really this is so dishonest that it is basically either, you know nothing that you are talking about or lying.

[joobz]

And they qualify for non profit status with out needing to meet many of the requirements for non religious organizations as well as get additional exemptions because they are a church.

So really this is so dishonest that it is basically either, you know nothing that you are talking about or lying.
What do you mean by additional exemptions?
How much less taxes can you pay if you are already paying none? Unless, of course, you get money from the government.. do they?

[tsg]

What do you mean by additional exemptions?
How much less taxes can you pay if you are already paying none? Unless, of course, you get money from the government.. do they?


From here (http://www.irs.gov/pub/irs-pdf/p1828.pdf) (bolding mine):

Congress has enacted special tax laws applicable to
churches, religious organizations, and ministers in
recognition of their unique status in American society
and of their rights guaranteed by the First Amendment
of the Constitution of the United States. Churches and
religious organizations are generally exempt from
income tax and receive other favorable treatment under
the tax law; however, certain income of a church or
religious organization may be subject to tax, such as
income from an unrelated business.



For starters, Churches are automatically exempt, while other charities have to apply.

[Lothian]

From here (http://www.irs.gov/pub/irs-pdf/p1828.pdf) (bolding mine):




For starters, Churches are automatically exempt, while other charities have to apply.Unless my geography has gone to pot (or there has been an invasion) JA Stewart, in the Shetlands, is more concerned with UK rather than US law.

[joobz]

from here (http://www.irs.gov/pub/irs-pdf/p1828.pdf) talking about a church may lose tax exempt status.

■ their net earnings may not inure to any private
shareholder or individual,
■ they must not provide a substantial benefit to private
interests,
■ they must not devote a substantial part of their
activities to attempting to influence legislation,
■ they must not participate in, or intervene in, any
political campaign on behalf of (or in opposition to)
any candidate for public office, and
■ the organization’s purposes and activities may not
be illegal or violate fundamental public policy.


This is quite interesting, because I'm certain that several of these are regularly violated by all churches. Think about all of the church led attempts at stopping abortion. Many churches will even host prayers in attempt to get congress to realize abortion is evil. Wouldn't hosting prayers count as attempting to meddle with government? The only way it wouldn't is if you can show that no one really believes the prayers will do anything.

[tsg]

Unless my geography has gone to pot (or there has been an invasion) JA Stewart, in the Shetlands, is more concerned with UK rather than US law.

It sounded more like a general question to me. I only responded with US specific law because it is the one I am familiar with. If there is significant difference between US and UK law, I'd be interested in seeing it.

[ponderingturtle]

What do you mean by additional exemptions?

Reporting requirements for finances. Non Church non profits have very rigorous standards that they must keep and let people see their books, churches get a nice exemption to this.

How much less taxes can you pay if you are already paying none? Unless, of course, you get money from the government.. do they?
Well they do from the Faith Based initiatives, but not all Non-Profits are exempt from all taxes. I think that in some places non profits pay property taxes while churches don't.

Either way, the whole being able to be a non profit and keep your books secret is a major difference, they do not simply play by the rules of non profits they have their own exemptions from those rules as well.

[Beerina]

Just a simple question really, why is the church exempt from paying tax? Are all religious structures thus?

I don't like that they don't pay tax, I don't believe that religion should get any special privileges in society, it should just be like the rest of us.

Religion was society not so long ago.

That the power hungry have moved from being religious leaders to secular ones merely shows a power transfer over the centuries.

Shall the power hungry leaders now take one more step to killing off the remnants of their competition? Would that be wise, given the competition could really fight back over this issue and possibly re-emerge?

It's about power, and enough Christians still exist that the power hungry in the secular government, properly, should fear them.


Thus the arguments raised in the OP really don't apply to the root of what's actually going on.

[Paul C. Anagnostopoulos]

You mean like the kind I get?

Oh wait, I don't.

Not having to pay taxes is special treatment.
You have a basis on which to make demands of the government, because they operate with your money. It is good that churches have no such basis.

~~ Paul

[blutoski]

You have a basis on which to make demands of the government, because they operate with your money. It is good that churches have no such basis.

I actually think this makes sense, you know. Look at Tobacco: their relationship with the government has become pretty much symbiotic because the tax revenues are so lucrative.

If churches paid taxes, the government would be very motivated to protect and grow their operations. Right now they're somewhat of a burden, and governments would be quite happy if they went away.

I recall that there was a city that was bordering on bankruptcy because so much of its valuable real estate was being monopolized by downtown megachurches and their property tax base was overdependent on residential zoning.

[tsg]

You have a basis on which to make demands of the government, because they operate with your money. It is good that churches have no such basis.

I'll tell you what, I'll trade what little pull I have with the government to the church for their tax exemption.