If, all of a sudden, churches, synagogues, mosques and the like lost their tax privileges, how much tax revenue would that generate?
Ryan T. Cragun, a sociologist at the University of Tampa, and two of his students, Stephanie Yeager and Desmond Vega, took it upon themselves to figure it out. They’re not exactly disinterested parties; their research appeared in Free Inquiry, a publication of the Council for Secular Humanism. But Cragun is a serious sociologist of religion and the data seems to check out. The full scale of subsidies religions get is pretty staggering:
When people donate to religious groups, it’s tax-deductible. Churches don’t pay property taxes on their land or buildings. When they buy stuff, they don’t pay sales taxes. When they sell stuff at a profit, they don’t pay capital gains tax. If they spend less than they take in, they don’t pay corporate income taxes. Priests, ministers, rabbis and the like get “parsonage exemptions” that let them deduct mortgage payments, rent and other living expenses when they’re doing their income taxes. They also are the only group allowed to opt out of Social Security taxes (and benefits).
Cragun et al estimate the total subsidy at $71 billion. That’s almost certainly a lowball, as they didn’t estimate the cost of a number of subsidies, like local income and property tax exemptions, the sales tax exemption, and — most importantly — the charitable deduction for religious given. Their estimate that religious groups own $600 billion in property is also probably low, since it leaves out property besides actual churches, mosques, etc.
The charitable deduction for all groups cost about $39 billion this year, according to the CBO, and given that 32 percent of those donations are to religious groups, getting rid of it just for them would raise about $12.5 billion. Add that in and you get a religious subsidy of about $83.5 billion.
83.5 billion a year. Just imagine how much actual good could be done with that money.
And I mean REAL good, not the fake charities that these organizations set up to launder their money and sheer the sheep, but rather money spent on improving roads, school, and infrastructure.
But why should we care if people want to try and buy their way into heaven by giving these charlatans their hard earned money you may ask?
Here's why:
Religious exemptions from taxation is no trivial matter. It is estimated that churches and other religious bodies may own anywhere between twenty and twenty-five percent of all of the land in the United States. This represents a huge portion of the possible tax base and billions of dollars in potential revenue which could be used to fund schools and other portions of the social infrastructure upon which the churches depend, just like the rest of us. The assets of the Roman Catholic church alone exceed those of the five largest American corporations combined and cash donations to churches total tens of billions of dollars every year.
Every dollar not paid by churches or other religious organizations must be made up from some other source. When all tax exemptions are taken into account, it is estimated that the average family may pay up to $1,000 in extra taxes every year to make up for the lost revenue not received from churches and religious groups. This includes sales taxes, inheritance taxes, income taxes, personal taxes, and ad valorem taxes.
They get 83.5 billion in subsidies, they own upwards of twenty five percent of the country, and this costs the average American family $1000 per year.
Now as a non-religious type this infuriates me. Especially as I have made it one of my goals in life to NEVER, even accidentally, support any religious or church group. As it turns out apparently I have been subsidizing them my entire life.
Shit!
hen you realize that this tax exemption is being used by all kinds of members who don't have an actual letter on them. I get so tired of the line being held up at a store, because the employee has to go though some lengthy list, because of people trying to get a tax emption . have no number to give them. Have heard of people just leaving the tax letter on someone else's front porch . The most outlandish thing was when Mitt Romany borrowed his church's tax exemption for his own tax one yr. How many others do this?
ReplyDeleteIf that isn't appalling, Gryph! Double shit! And, I'm much like you - a non believer.
ReplyDeleteOur nation has screwed itself royally! No doubt about it.
Revising the tax law could be quite simple.
ReplyDeleteIf you preach politics from the pulpit, not just candidates but also current law (like abortion) or proposed laws (like gay rights), then you LOSE your tax exempt status in all things. The first being you are gonna pay your property taxes.
That wouldn't need a constitutional amendment or have to go through Congress. That could just be a revision of the tax code handled in house.
Personally, I don't think any "church" should be allowed to function as a business. No property or business outside the actual church and meeting halls. They can "own" a parsonage. But they should not be running bookstores or other businesses for profit and then paying nothing. Yeah, that includes thrift stores.
Personally, I think we should also tighten up what constitutes a church. I have no problem with a dozen faithful getting a run down house and converting into their church. I don't even have a problem with the "self called" amateur ministers in those situations.
I have a problem with the snake oil Joel Oesteen's filling a stadium preaching politics, raking in the money on TV and the internet and then flying first class to Vale for Christmas vacation, supposedly the holiest and busiest time of year for a true minister.
How you'd do it, I'm not sure.
But you know nothing will be done because the religious lobby is even more powerful than the tobacco lobby or the oil lobby.
Bookstores would be small potatoes - look at hospitals (which do things other hospitals would be charged with felonies for) and schools fromK-12 to universities.
DeleteHUGE business - and we double subsidize themwith vouchers, medicare/aid and grants and scholarships.
First of all, I don't think any religious organization should be tax exempt. However, the author has taken some liberties with his assumptions. One is the statement that "Every dollar not paid by churches or other religious organizations must be made up from some other source." That is income LOST and not necessarily income SPENT that must be made up by another source.
ReplyDeletePlease follow your own moniker - since we are running at a deficit, indeed those tax dollars must be made up elsewhere.
DeleteNow imagine how those of us instates with vouchers feel. My brilliant (IQ tested kid) won't have access to a full range of AP courses because of budget cuts - but vouchers go to support the pedophile RCC.
ReplyDeleteAnxious to become an Ex-Pat
How does this all jibe with the First Amendment?
ReplyDeleteNo establishment of religion, when all these tax and funding options do exactly that. Does the ACLU or other org. wish to take this on?
I'd say take it to the Supreme Court, but they might set a dangerous precedent, given the SC's current makeup.
Today's NYT has a great article about Ruth Bader Ginsburg -- she ain't giving up.
The First Amendment was about establishing a national religion.
DeleteExcuse me, not the First. Sorry, typing distracted.
DeleteReligion pays handsomely for the so-called leaders. Yet, strangely politics must be even more lucrative. Look at how many preachers have run for office. Robertson, Huckerbee and others. Just replace one scam with another without losing a step. Add to the list Graham with his private jet that his flock pays for. Robertson with his silver mine, and energy drinks. "We the People" have been, and still are being royally screwed by the "chosen few" Look at the corruption at the Vatican, and the priest from Milwaukee moving millions to a fund that can not be touched by people damaged by pedophile priests. Cardinal Dolan was deeply involved in that, too.
ReplyDeleteI wouldn't lump all churches with those yahoos.
DeleteGet a job or start a business and stop relying on government to tax productive citizens in order to provide lifelong handouts to those who wish to live the RatLife. Or is that asking too much?
ReplyDeleteWhat about your own "pastor Pervo" and his tax exempt exemptions? IIRC some came out in divorce court? Do a followup with Mel's work to expose old Pervo's tax exemptness.
ReplyDeleteChrist in a handbag! What is that in the photo? It looks like an alien hive spaceship. (Nightmares of "V")
ReplyDeleteDon't lump all churches together in one box.
ReplyDeleteFor every mega church scammer out there, there hundred of small congregations that do much for the community. In my mother's church, an old mainline congregational church has about 50 active members. Any money given to the church including Sunday offering, yard and bake sales and holiday sales goes towards building maintenance, minister's small salary and supplies. any money left over goes to food banks, heating oil for poor people and other local social programs. The minister drives her own ten year old car and the parsonage was sold. Far from being extravagant.
This has been one of my pet peeves for ages.
ReplyDeleteALL churches are businesses, the idea is to make money, and if you can't make money, then take out a loan at a bank , if that fails, it's time to close up shop and try something different. Why should any business NOT pay taxes when everyone else has to under penalty of law?
If you talk politics or have crosses on your lawn that represent how many million surgical abortions there've been Rowe v Wade, you should pay at the next higher tax bracket.
Take a serious look at the incorporated "online church" as a front for re-routing money away from the "ordained" minister to line both his pocket and that of his wife since both hold "offices" and can skim 10% of the "profits" for each "role" held as "salary." Nice scam...no other person holds any roles. LOL...Where is the government oversight when needed?
ReplyDelete