Church And Tax

Introductoin

Many "non-profit" organizations in the nation are granted tax exempt status.  The Red Cross, Boy Scouts, Salvation Army and numerous others, including all recognized churches.  While many of these are truly not-for-profit institutions, anyone who believes that churches are not profitable should look at the vast resources and property that churches have acquired.

In order to qualify for tax-exempt status, an organization must show that its purpose serves the public good, as opposed to a private interest. Organizations that are exempt under Internal Revenue Code Section 501(c)(3) are those whose purposes are religious, charitable, scientific, literary, or educational. They may also foster national or international amateur sports competition, prevent cruelty to children or animals, or test for public safety.

Discussion

In 2001, over 240,000 information returns were filed by tax-exempt  entities.  These organizations held over $1.6 trillion in assets, an increase of 4 percent from 2000, and reported $897 billion in revenue.  Those numbers are undoubtedly much higher today.  If property taxes were assessed on the real property part of the $1.6 trillion, and income tax were paid on the nearly $1 trillion in income, we would probably not have a budget deficit!  Now here's the shocking part.  The above numbers do not include churches!  I have not been able to find a credible estimate for the lost income from church tax exemptions, but the number must be staggering.

Tax exemptions are a form of government subsidy.  Therefore, tax exemptions granted to churches are government subsidies of religious institutions.  As President Garfield said, a tax exemption is a tax on everyone else, because the exempt institution, by not paying its share, shifts that burden to the rest of society.  Isn't that a violation of the First Amendment clause that says that Congress shall make no law respecting the establishment of religion?

Should churches ...