There is no reason for churches to not pay taxes. Some people have argued that the gov't can't tax churches because it would violate the principle of separation of church and state, but in fact the exact opposite is true. It's unconstitutional for them not to. The First Amendment says that the gov't can pass no laws respecting an institution of religion. By giving churches tax exempt status, they have passed a law respecting religious institutions. Thus, this law is unconstitutional. The gov't should turn a blind eye to the religious nature of a church and tax them exactly the same way they would tax any other institution.
Some people argue that churches are non-profit organizations, so they should be tax exempt. But as everyone knows, some churches in the US make millions of dollars every year. They don't deserve non-profit status unless they actually don't make a profit. If a church is paying you a salary, then you are not working for no profit. Yet clergymen don't even pay sales tax on items they they buy purely for their own personal use.
Some people have excussed this law by saying that churches help people, so they should be given a tax break. Policemen help people too, but they still pay their taxes. So do firemen, doctors, lawyers, teachers and many other people, many of whom help people far more than priests do.
Some people say that churches support charities, so they shouldn't pay taxes. If so, then they have nothing to worry about because charitable donations are already tax deductible for everyone! They can deduct their charitable contributions just like everyone else.
If churches are really supportive of charity, then they should be happy to pay taxes. Our gov't is the biggest charity case in the country! Seriously, our gov't provides more support for poor people than any all the chuches combined.
Besides, churches should be thrilled to be able to help support the gov't of this great country that allows us the freedom to worship as we please. Most Christians consider themselves to be very patriotic. They should expect their clergymen to do their part to help support our nation.
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Whatever the logic of your proposal it is evident from attitudes throughout the executive and legislature that it has no chance of realization. The only slight modification of church status is the threat by the IRS to tax churches that indulge in political activity but even this may be very difficult to enforce.
I think the best reason to not tax churches is because their only source of income (ostensibly) is donations. I'm donating to the church, not the government.
If a church was running a store or selling a TV show, sure, go ahead and tax.
Even if you taxed churches as you do business income, churchs aren't supposed to make money.
Of course, I've worked for businesses that didn't make money, either--as long as people are taking home paychecks, the businesses didn't need to make actual profit.
As taxing in general goes, I don't really think businesses should pay taxes anyway--afterall, businesses are made up of people--if they're paying for the schools and roads, I don't think the same people need to pay again when they join together to be a business. I've never seen a business drive on a road--it's always a person at the wheel. Businesses don't go to school, either.
Hrench, you make a good argument for not taxing the church itself, but what about the people who are paid by the church? They spend most of their income on themselves. Shouldn't they pay taxes?
I've seen a priest get quite indignant because a cashier didn't ring up his purchase as tax exempt. It was an honest mistake on a small purchase. The priest got all snotty about it, like he was all entitled. It really ticked me off.
Yes, Dwane, I agree with the sales-tax thing. Around here, even when I buy tires, the person asks for my tax number because farmers don't pay sales tax either. I think all taxes should be as fair as possible--when I say businesses shouldn't pay taxes, I'm talking about income tax--I think everyone should pay sales tax.
As for the income of church employees, as far as I know they do pay income tax. As for not paying sales tax on a purchase that's for the church, I guess that's the way we've set it up. You're right, it's not fair.
And for your deduction argument, I'm already stymied that I have to give money to an organization for it to be called charity, not to a person. I'm not even sure why charitable donations are deductible--apparently the government wants to encourage them as long as the money goes to non-profits? But I could run a factory as a non-profit.
I've oft wondered if a per-capita tax might be the most fair. Don't bother trying to compute people's income or spending or property, etc. Just every adult pays a certain amount every year. If you can't pay, you're punished somehow--like you lose fire protection or road use. If you were in a car-pool, everyone would have to drive the same amount--you can't say "I gave money to the poor, so I don't have to drive today" or "I'm paying mortgage interest so I get to deduct a day driving." Deductions are goverment manipulation of the people.
I don't know which churches are making millions in profits (large mainline demoninations, perhaps?) or the rationale behind the sales tax exemption, but my understanding is that the reason why the government does not tax local charities, including churches, is that they play an important role in helping the poor that the government cannot. When's the last time you saw a soup kitchen or a homeless shelter that wasn't run by a church/local charity? They are able to address the particular needs of a community at the local level, which would be difficult for the behemoth US federal government. In other words, these charities are actually helping out the government, by negating the need for additional federal government programs (translation: more taxes). The churches I am familiar with do not make a profit (truly maintaining their 501(c)3 status). People who work for churches do, of course, have to pay taxes on their income. Clergy are able to opt out of paying Social Security/Medicare tax, but on condition that they do not receive those benefits (say, if their denomination has a program to care for them in old age). Another important component of being a registered non-profit is that donations to that organization are tax-deductible. Most people (let's admit it) are selfish enough that they only like to give money to charity when it's a tax write-off. Taking away churches' non-profit status would severely reduce the amount of donations they receive and so how much they are able to do in their communities.