Tax Exemption for Churches (Is the Wrong Question)

For the many-th time, I see a repost from Twitter on some other social media site, complaining about the wealth of mega-church pastors, and trying to rile people up about how churches should NOT be tax exempt. And, sure, Joel Olsteen’s lifestyle is a mockery of Jesus’ life, but there are only a handful of “mega” churches and “mega church” pastors in this country. Meanwhile, many, many thousands of the so-called 1% in this country pay a lower tax rate (and sometimes, ACTUAL tax) than the average, blue- or white-collar person does.

As a country swimming in debt, we would get a lot more mileage out of calling for meaningful taxation of billionaires and multi-hundred-millionaires before we start worrying about removing tax exemptions for churches and pastors. I think those posts and reposts on Twitter are probably jointly paid for by The Koch Brothers and George Soros, for the class-warfare angle. And maybe Bill Gates, for the anti-religion angle.

Joel Osteen pays taxes on his income. How much of it he has managed to shelter from the IRS is a game played just like all the rest of the 1%. The church, as a non-profit, does not pay taxes, because the money being received in donations cannot be considered a profit to tax. That’s the definition of how non-profit organizations work.

Churches are supposed to be prevented from getting involved in politics. It’s part of the deal in being religiously tax-exempt. (How this works when Presidents and candidates go to churches and make speeches from the pulpit is quite beyond me, but I digress.) If you start taxing churches, then there’s no reason for them not to get heavily involved in promoting particular candidates, and forming political action committees, just like corporations, taking an active role in getting people elected, and lobbying government for favorable treatment.

You may retort that large, corporate churches like the Catholics or Mormons already exert a huge influence on government, and I’d say you’re right, but it’s still less than the average Fortune 100. If we open the floodgates here… With the “war chests” accumulated by both of those organizations? As they say: you ain’t seen nothing yet.

Do the people calling for the removal of tax exemptions for churches really understand what they’re asking for? I don’t think they do.

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