There are two primary reasons why churches do not pay property taxes or corporate taxes and why donors to churches do not pay income taxes on their donations (although they do pay federal payroll taxes on those dollars):
1) The Constitution of the United States guarantees the freedom of the people to worship without any government entanglement. The power to tax is the power to control. All levels of governement incentivize and disincentivize behavior through tax policy. If the government were able to tax religions, it could very easily overreach into controlling religion. Throughout history, religions and governments have tried to control one another, with terrible results. For that reason, the Founders of the United States decided to prevent that possiblity by establishing principles of freedom to worship without government involvment and freedom from government establishment of a state religion.
2) Secondly, religious organizations devote hundreds of millions of dollars to causes that the government would otherwise have to support, like feeding the poor. The government gets the benefit of these efforts at a reduced cost by allowing the charitable deduction for religions. For example, if Jane is in a 20% effective tax bracket and she gives $100 to the church for a food drive for the homeless, the government is deprived of $20 in tax revenue. However, the government saves $100 worth of food that it might otherwise have to provide through WIC or another welfare program to feed the homeless. So the exemption makes sense from a tax policy standpoint, to some extent.
2007-02-04 07:50:02
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answer #1
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answered by bojanglesaddict 1
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The idea is any organization that supposedly is a charity organization and does not retain profits (it's a little more complicated than that) doesn't have to pay taxes.
Churches aren't the only organizations in this status.
You would be really mad if you saw how many politicians start non-profit foundations and organizations once they leave office.
Boy - they not only don't have to pay taxes, but get rich off the taxpayers in more ways than a church ever could.
So you see, you have to watch and worry about the politicians, not the churches.
2007-02-04 15:45:08
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answer #2
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answered by Anonymous
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Even if churches would pay taxes, the pastors are not the ones who would get a "free ride." The congregation pays for the church building, taxes, etc, as well as the pastor's salary. Pastors do pay income taxes and (if they own their own home) property taxes as well.
2007-02-04 15:41:14
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answer #3
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answered by wnk 5
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pastors pay income tax, churches dont pay property tax. churches are under non profit clauses so their tax situation is different but dont worry Uncle Sam watches where the money goes? ask Jym Baker!
2007-02-04 15:41:53
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answer #4
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answered by richard c 4
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Well, clearly they shouldn't, nor should pastors' incomes go untaxed. But try getting a US politician to stand up for either aim.
2007-02-04 15:44:15
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answer #5
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answered by obelix 6
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I'm not in any way religious, but if that's what you think then you really are naive. Then again, judging by the hateful tone of your question I suppose your just trying to insult people that are religious.
2007-02-04 15:45:25
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answer #6
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answered by Anonymous
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that's not entirely true and no, pastors don't and never get free rides infect they have the toughed to job on earth.
2007-02-04 15:41:43
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answer #7
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answered by sasha 4
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It's part of the separation of church with the government.
2007-02-04 15:40:50
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answer #8
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answered by Bill Mac 7
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Separation of Church and state... That's what you Atheists want isn't is??? or is that law only good when YOU think the church violates YOUR rights??? Typical Atheist Hypocrite... you can't have it both ways...
2007-02-04 15:40:43
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answer #9
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answered by Anonymous
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for the same reason the
red cross
cancer society
many hospitals
food kitchens
don't pay taxes.
2007-02-04 15:45:57
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answer #10
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answered by Chef Bob 5
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