churches and taxation

[flaja]

I understand the doctrine that the power to tax is the power to destroy, thus churches and religious organizations are tax exempt as far as their income and real estate is concerned. But, considering how many churches/organizations operate as tax dodges, should this be changed? Is there any way to regulate churches and religious organizations to insure that they aren’t just vehicles for making someone rich without violating the free exercise clause of the 1st Amendment?

Also, should churches and religious organizations have to refrain from political activity in order to keep their non-profit, tax-exempt status? Do we tax political parties or political candidates because they engage in political activity? So why should tax churches if they wish to engage in political activity?

[Marley]

Churches are characterized the same as schools and hospitals ubder IRC Section 501(C)(3).

Be careful discussing politics and tax exempt entities, there are two distinct activities that may get blurred if you're not careful: getting politicians elected, and getting laws enacted. Both are politics in general, but very different under the federal law.

Charities (including churches) MAY engage in lobbying if their careful applying and administering IRC Section 162(e) and 6033(e).

And it all boils down to the government's descretion to enforce the law too. I recall Bill O'Really examining the tax forms (open for public inspection by law) Jesse Jackson's Rainbow Coalition and reporting blatant aggressive (at the least) compliance, yet nothing ever came of it, event hough surely some one with authority and power veiwed O'Really's work and was made aware.

Like the trooper knowing you're doing 64mph in a 55mph zone, or knowing a car with a volunteer fire company tag is passing you at 76mph, the descretion to enforce comes into play.

[flaja]

Like the trooper knowing you're doing 64mph in a 55mph zone, or knowing a car with a volunteer fire company tag is passing you at 76mph, the descretion to enforce comes into play.


True. If a conservative church pastor speaks out against abortion or sodomy, the IRS will threaten his church, but liberal pastors can turn over their pulpits to Democrat candidates every Sunday and the government doesn't raise an eyebrow.

My understanding is that churches didn’t used to be prohibited from actively participating in politics. But then some churches in Texas started criticizing Senator Lyndon B. Johnson and said Senator had the law changed so tax status could be used to beat these critical churches into submission.