Why don't churches pay taxes?

Answer 1

"The power to tax is the power to destroy." If churches had to pay taxes, then it is possible and perhaps likely that the government would have to shut down a church for failure to pay taxes. As such, the separation of church and state under the First Amendment requires a tax exemption for churches.

It may be true that giving a tax exemption to churches (and other non-profits) provides other societal benefits that independently justify the exemption, but churches are exempted because of the First Amendment. Congress could start taxing non-profit organizations other than churches tomorrow, but taxing churches would require a constitutional amendment. Even a "bad" church (whatever that means) is entitled to a tax exemption.

Answer 2

Churches Pay Taxes

Answer 3

""The power to tax is the power to destroy." If churches had to pay taxes, then it is possible and perhaps likely that the government would have to shut down a church for failure to pay taxes. As such, the separation of church and state under the First Amendment requires a tax exemption for churches."
Separation of church and state regards religion influencing the government and the government controlling religion. I agree with this separation. However, a church is using up valuable land that other people could pay taxes on fairly. Churches as a whole take in considerable money, pay nothing in taxes, and always want more. This is especially true in Catholic churches (cleans your immortal soul of sin in exchange for cash, INDEED).

Answer 4

Expanding on the previous post: The government has determined that any loss from exempting churches from taxes is more than offset by the benefits to society that they produce in any number of tangible and intangible ways. Additionally, religious institutions do not generate profits in the same sense as conventional businesses. Money coming in is re-channeled to the "good works" they perform rather than income to stockholders. They are not exempt from all taxes because they do pay employment taxes and sales taxes.

Answer 5

Here are some of the reasons why nonprofit organizations are tax-exempt and why it makes sense to preserve these tax-exemptions:

Nonprofits relieve government's burden- Private schools and hospitals, day care centers, homeless shelters, and other nonprofits provide services that government might otherwise be required to offer. Through tax-exemptions, governments support the work of nonprofits and receive a direct benefit.
Nonprofits benefit society- Nonprofits encourage civic involvement, provide information on public policy issues, encourage economic development, and do a host of other things that enrich society and make it more vibrant.
Taxing nonprofits would be difficult and counterproductive. Determining what qualifies as taxable income would be extremely difficult according to many economists. The adverse effects of taxation on the viability and effectiveness of many nonprofits would be counterproductive and cost more to the community than the taxes it would generate.
Exemption for religious nonprofits preserves separation of church and state. Tax-exemption limits government's ability to use tax policy to influence religious choices.

Answer 6

Churches should pay taxes on square footage that is used for a business generating revenue. We have several in our community that run child care programs that charge $10 less than the private sector and pay employees less than the private programs. They also have fitness centers, book stores, hair salons, ballet and karate classes and more. It puts a strain on your private sector businesses who can't grow or sustain their business because of unfair competition. It has cost us the expansion of our local businesses. They do not pay property taxes and do not follow many of the state regulations for the care of children. People automatically trust the church to take care of and educate their children, when in fact they should be very weary. I am a Christian but see many misguided programs.

Answer 7

There are experts and cons to that action. by potential of requiring that church homes pay taxes, community municipalities will see an inflow in tax revenues, as as quickly as tax exempt entities at the instant are required to pay taxes. although, those self same municipalities additionally will see an enhanced fee in social provider classes, as those church homes can now not have sufficient money to help those in desire. The question is even if if the funds gained by potential of tax revenues additionally will out the extra fee of social provider classes. keep in mind, church homes can oftentimes get human beings to volunteer amenities to help the needy, governments oftentimes could desire to pay human beings to accomplish those self same amenities.

Answer 8

Because they're a non-profit. Same rules apply to other non-profits. Also churches don't get any government funding, so all of the money a church takes in is given as gifts from the people who go to that church. Those people have already payed taxes on their income.

Answer 9

Separation of Church and state.