1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

The Taxation of Religious Institutions

Discussion in 'Chit Chat' started by Aussie792, Jul 4, 2014.

?

Would you have religious institutions be taxed?

  1. Yes

    70.4%
  2. No

    13.0%
  3. Other

    16.7%
  1. Aussie792

    Full Member

    Joined:
    Apr 5, 2013
    Messages:
    3,317
    Likes Received:
    62
    Location:
    Australia
    Gender:
    Male
    Gender Pronoun:
    He
    Sexual Orientation:
    Gay
    Out Status:
    Out to everyone
    This is pretty self-explanatory. Do you believe that churches and other religious institutions should be taxed?

    There are arguments both ways. On one hand, it would be a dangerous legal precedent to only target certain churches (even though the motive would be that they're richer), and smaller groups couldn't afford it.

    Most mosques that I know of have no collective funds or a broader administration or hierarchy, and some smaller Christian churches operate independently. I believe that taxes on them would be somewhat burdensome and should be kept to a low level. Also, their disposable funds aren't enormous and most of their money comes from those who attend their services - independent institutions don't really have the same financial behaviours that companies do.

    However, the are the enormous business empires of the Catholic and Anglican churches, and to a lesser extent in the Anglosphere, the Orthodox, Lutheran, and other (predominantly Protestant) large churches, with centralised bureaucracies and large funds. These tend to have deep coffers, lucrative assets and comfortable incomes not derived from charity. I would willingly see them taxed on their wealth, but if they only have assets (especially if it's art, religious artefacts etc.), not a profit-seeking business side, then I'd be reluctant to tax them along business lines.

    Do you believe that religious institutions should be taxed? If so, do you think that they ought to be selectively taxed with some exemptions, or generally at a lower rate than companies? Or perhaps at the same rate as any business?


    And this is a delicate topic. I'd hate to see it getting locked. Keep it as civil as you can manage. :slight_smile:
     
  2. the prince

    Full Member

    Joined:
    Nov 22, 2013
    Messages:
    65
    Likes Received:
    9
    Location:
    Syria
    Gender:
    Male
    Gender Pronoun:
    He
    Sexual Orientation:
    Gay
    Out Status:
    Some people
    I don't see any logical reason to tax mosques; they are not factories or companies and the money people give is going to poor people, charities or to improve the mosque.

    I don't have an opinion for the other religious Institutions.
     
  3. AlamoCity

    Full Member

    Joined:
    Dec 28, 2012
    Messages:
    4,656
    Likes Received:
    0
    Location:
    Lone Star State
    I was raised in a religious household, so I am generally against taxing religious institutions because I consider them to be charities, even if their only charitable contribution is "saving souls."

    I was thinking that maybe we can only tax institutions who funnel money out of the country, but that would hurt those churches who have missions abroad and who basically redistribute the wealth of richer churches to poorer nations' churches.

    Do I believe that all churches should receive tax exemption? No, there are many that use the wealth of their church to spend lavishly on extravagant things that would make even the most opulent person blush. Pastors of mega-churches seem to live well beyond the means of their average congregant.

    I would be okay if we were to tax churches and we were to set up a scheme where they could have their contributions to society, whether through charitable missions, upkeep of their facilities, and all other necessary and proper activities of a religious institution, be deducted from their taxes to the point where the majority of churches would end up as effectively tax-exempt and only those churches that are essentially moneymaking businesses and up getting a tax bill. However, I really don't want to set a precedent that would upend the fact that churches are essentially considered charitable institutions in western nations. Christian churches sometimes face oppression through taxation in places where Christianity is not the dominant religion; I think we're better than those countries.
     
  4. Hexagon

    Full Member

    Joined:
    May 1, 2011
    Messages:
    8,558
    Likes Received:
    1
    Location:
    Earth
    Taxed the same as other organisations. Not unfairly, in either direction. But I also wouldn't approve of charitable status for them.
     
  5. PatrickUK

    Full Member

    Joined:
    Feb 25, 2014
    Messages:
    6,943
    Likes Received:
    2,362
    Location:
    England
    Gender:
    Male
    Gender Pronoun:
    He
    Sexual Orientation:
    Gay
    Out Status:
    Out to everyone
    I declare an interest as a Church Treasurer and say no. I have enough trouble playing chicken with the figure £0.00 every month as it is :slight_smile:

    Seriously. I think all religious institutions should be exempt. Why? Whatever you think about religion (and I know a lot of people on EC have a very low opinion... many for good reason) there is a lot of giving back to community and environment through outreach projects and the like and the exemption from certain taxes allows that to happen. Removing the exemption altogether would have a negative impact.

    As Church Treasurer I am often the dissenting voice in a congregation that would give away every penny to charitable causes and community projects, leaving us bust. Fortunately, I have a powerful veto.

    I know many people will say that the outreach work and giving is always for the purposes of indoctrination, but I resolutely dispute that. It absolutely isn't the case. Many projects are cross denominational or non-denominational and giving is to more often than not to secular causes. The tax exemptions really make a difference locally.

    In the UK, Churches and religious organisations with an annual income of £100,000+ must abide by the same accounting and reporting processes as charities and be registered with the Charities Commission. Those that fall below threshold should still demonstrate an appropriate structure with independent examination of accounts on an annual basis.
     
  6. Higs

    Full Member

    Joined:
    Feb 27, 2014
    Messages:
    369
    Likes Received:
    0
    Location:
    Spain
    As an European - yes.

    Here you always hear how that pastor or this did something horrendous, say a woman with 3 kids was renting an apartment from one and when she couldn't pay anymore he just threw her out literally to the street because she had no where to go, and you never hear of them doing anything good.

    Not to mention that inside the church they ask everyone who comes over to give money. Every time a pastor is speaking and everyone is sitting quiet and listening, some guy comes over with a bowl and pokes it into everyones face asking for money.

    Also Vatican, so you know, they got enough money as it is here in EU. I believe Vatican owns the Colossuem though I'm not entirely sure about that, they do own alot of Rome lands too. Yes Vatican donates to charities, once a year, not even a 1% of their wealth.
     
    #6 Higs, Jul 4, 2014
    Last edited: Jul 4, 2014
  7. happydavid

    Full Member

    Joined:
    Feb 21, 2014
    Messages:
    1,617
    Likes Received:
    0
    Location:
    A town near Birmingham England
    Gender:
    Genderqueer
    Gender Pronoun:
    He
    Sexual Orientation:
    Bisexual
    Out Status:
    Some people
    I feel it depends on the impact on the local community. If they make a positive impact eg helping the homeless feeling like they are part of it no they shouldn't have to but if there just there to impose their views they should.
     
  8. BobObob

    Full Member

    Joined:
    Jun 26, 2012
    Messages:
    577
    Likes Received:
    9
    Location:
    California
    Gender:
    Male
    Gender Pronoun:
    He
    Sexual Orientation:
    Gay
    Out Status:
    Out to everyone
    Churches should be subject to the same restrictions as other organizations. That means that they could be tax exempt if, and only if, they meet certain qualifications such as proving that they are performing a charitable service to the community, being non-discriminatory, and keeping their books open.

    Currently, churches in America are tax exempt just for being churches, and are given special exemptions from all the other requirements that other tax exempt organizations must abide by. That needs to change.
     
  9. justjade

    Full Member

    Joined:
    May 18, 2013
    Messages:
    395
    Likes Received:
    0
    Location:
    North Canton, Ohio, US
    Seconded. Churches have many if not all of the same financial practices as businesses. They collect money for things they need, to pay bills, and to pay their employees. And a lot of them really don't provide any charitable services to their communities, which really gets me because that just seems like something churches should inherently do. I've seen churches that actually have businesses in them, like a food court or a hair salon. Seriously, they exist.
     
  10. tscott

    Full Member

    Joined:
    Dec 18, 2013
    Messages:
    1
    Likes Received:
    0
    Location:
    Rochester, NY
    No, they're charitable institutions, but maybe a little oversight could be in order. There a clear abuses of the status. By i large I know few churches operating in the black.
     
  11. Yossarian

    Full Member

    Joined:
    Sep 14, 2013
    Messages:
    1,814
    Likes Received:
    4
    Location:
    Florida
    Gender:
    Male
    Gender Pronoun:
    He
    Sexual Orientation:
    Gay
    Out Status:
    Out to everyone
    Churches should pay property tax to cover the various local services (fire, police etc) they receive, and their employees should pay income taxes at all levels of government. If they engage in business, the businesses they own should pay taxes, but individual contributions and donations to the church should not be taxed as "income" to the church. IMHO, of course.
     
  12. BryanM

    Full Member

    Joined:
    Apr 19, 2013
    Messages:
    2,894
    Likes Received:
    1
    Location:
    Columbia, Missouri
    Gender:
    Genderqueer
    Gender Pronoun:
    They
    Sexual Orientation:
    Gay
    Out Status:
    Out to everyone
    If churches want to have a say in politics, like most churches in the US, they should be taxed like any other business.
     
  13. jargon

    Full Member

    Joined:
    Nov 8, 2011
    Messages:
    362
    Likes Received:
    0
    Location:
    New England
    If all churches were taxed, then the only churches left standing would be the ones that are successful money making operations. I'd rather stick with what we have than deal with a population whose religion is unanimously commodified.

    That said, I'm fine with taxing personal income of church leaders who make exorbitant incomes as it is.
     
  14. Argentwing

    Full Member

    Joined:
    Dec 13, 2012
    Messages:
    6,696
    Likes Received:
    3
    Location:
    New England
    Gender:
    Male
    Gender Pronoun:
    He
    Sexual Orientation:
    Bisexual
    Out Status:
    Out to everyone
    It's not infringement of free religious practice to tax churches. You have income, you get taxed. Them's the rules. The little churches who don't make much money can simply be taxed less/ go through some sort of appeal so they don't have to shut down.

    If anyone argues "It's only donations to be put back into the community" well, so are tips for waiters and waitresses. They don't live high on the hog either and their tips are required to be reported to the IRS.
     
    #14 Argentwing, Jul 4, 2014
    Last edited: Jul 4, 2014
  15. BMC77

    Full Member

    Joined:
    Feb 27, 2013
    Messages:
    3,267
    Likes Received:
    107
    Location:
    USA
    Gender:
    Male
    Gender Pronoun:
    He
    Sexual Orientation:
    Gay
    Out Status:
    A few people
    I have mixed feelings. I, unlike many here on EC, am not necessarily anti-church. Also note that my comments are based from a US view. All that said, actually I think taxing them like a business might not be a bad idea. Yes, many churches are only scraping by these days. But a business can deduct legitimate expenses. So a church barely scraping by should, in theory, be able to avoid paying taxes. Meanwhile, a church that collects mountains of cash will pay for the privilege.

    Unfortunately, of course, there are all sorts of ways of avoiding paying taxes. So the large mega churches that collect those mountains of cash would undoubtedly find a way to work around taxes. One thing we really need is an overhaul of business tax code. There is something seriously wrong when a large corporation can make a huge profit, and yet--through the magic of loopholes in the tax code--pay zero dollars in taxes. But don't hold your breath waiting for that to happen. Not with how much power corporations have in politics. Also don't hold your breath waiting for churches to get taxed in the US. Even suggesting the idea would--I'd guess--be a fast political death for anyone seeking office in this country.

    ---------- Post added 4th Jul 2014 at 10:33 AM ----------

    A lot hinges on the church. Many churches do good charity work. But I'd bet there are churches that are more interested in recruiting members. Church A may be headed to some 3rd world country to help the locals build, say, a small school. Church B may be headed to the same country to tell the people: "Your religion is wrong! But don't worry! We're here to tell you all about Jesus, who hates everyone but us in this church!"

    Of course, taking a broader view of non-profit agencies, there is no requirement to have a view and mission that 100% of the population agrees with.
     
  16. Wuggums47

    Wuggums47 Guest

    I personally wouldn't support the taxation of churches, if the government needs money, it should be the burden of the rich. I don't know how to feel about churches where the pastors make 200k+ per year, but priests only make 30k, the previous pope gets 40k a year from his pension, so I doubt any of them go in it for the money. I think that if we started taxing churches, we would have to tax all of them, otherwise the government would be favoring certain churches over the others. I imagine a good number of churches wouldn't be able to stay open, many of them are scraping by as it is.
     
  17. Radioactive Bi

    Full Member

    Joined:
    Mar 24, 2014
    Messages:
    1,339
    Likes Received:
    0
    Location:
    UK Midlands
    Gender:
    Male
    Gender Pronoun:
    He
    Sexual Orientation:
    Bisexual
    Out Status:
    Out to everyone
    Absolutely. Plus, why wouldn't a church want to pay taxes, the very money that supports the government and country which they exist in. Especially when you consider the obscene wealth of the church organisations as a whole.

    Happy days :slight_smile:
     
  18. HuskyPup

    Regular Member

    Joined:
    Jun 7, 2013
    Messages:
    18
    Likes Received:
    2
    Location:
    An Igloo in Baltimore, Maryland
    Gender:
    Male
    Gender Pronoun:
    He
    Sexual Orientation:
    Gay
    Out Status:
    Out to everyone
    I think they should pay taxes. After all, they use municipal/public services, such as fire, police, ambulance, roads, sidewalks, streetlights, water mains, just as anyone else does. Why should they get the benefit of all these amenities without having to pony up? Also, I see plenty of preachers driving a big, new Cadillac or a shiny, new Mercedes Benz. What's up with that?

    Sure, maybe they 'give' to the community as well, but they need to help pay for the basics, just like anyone. That's just fair. I mean, suppose I decide that where I live is a church, and write my own Bible. Would that give me the right to stop paying taxes? No.

    Thus, churches need to be taxed at some level.
     
    #18 HuskyPup, Jul 4, 2014
    Last edited: Jul 4, 2014
  19. Argentwing

    Full Member

    Joined:
    Dec 13, 2012
    Messages:
    6,696
    Likes Received:
    3
    Location:
    New England
    Gender:
    Male
    Gender Pronoun:
    He
    Sexual Orientation:
    Bisexual
    Out Status:
    Out to everyone
    Well, if you tried hard enough and went through the legal channels, you might have something there :stuck_out_tongue_closed_eyes: but only the income that went to your religious establishment (not your individual pockets) would be tax-free if I understand correctly, so everything would have to go through it.
     
  20. Ridiculous

    Full Member

    Joined:
    Dec 8, 2010
    Messages:
    3,583
    Likes Received:
    1
    Location:
    New Zealand
    If they are going to claim the charity card then that's fine but they should have to go through the same hoops as any charity does to get tax exemption. They certainly should NOT be automatically granted tax exemption.

    This truly is not a difficult issue.