Federal District Court declares at least one religious income tax exemption unconstitutional.

Courtesy of The New Civil Rights Movement:  

A federal district court judge has declared “unconstitutional” a portion of U.S. law that allows “a minister of the gospel” to not pay income tax on a specific portion of their compensation. 

U.S. District Court Judge Barbara B. Crabb of the Western District of Wisconsin ruled that the so-called “parish exemption,” which allows religious ministers to avoid paying taxes on the value of their housing granted to them by their religious employers, “violates the establishment clause” of the U.S. Constitution and must be discontinued. 

The law, 26 U.S. C. § 107(2), has been on the books since 1954. 

The tax exemption was estimated to cost U.S. taxpayers $2.3 billion from 2002-2007 alone, likely more in the years since. 

Heralding it as a “major federal court victory,” the Freedom From Religion Foundation, which brought the lawsuit along with their co-presidents, Annie Laurie Gaylor and Dan Barker, offered an explanation of yesterday’s ruling. 

Ministers may, for instance, use the untaxed income to purchase a home, and, in a practice known as “double dipping,” may then deduct interest paid on the mortgage and property taxes. 

“The Court’s decision does not evince hostility to religion — nor should it even seem controversial,” commented Richard L. Bolton, FFRF’s attorney in the case. “The Court has simply recognized the reality that a tax free housing allowance available only to ministers is a significant benefit from the government unconstitutionally provided on the basis of religion.” 

Crabb wrote: “Some might view a rule against preferential treatment as exhibiting hostility toward religion, but equality should never be mistaken for hostility. It is important to remember that the establishment clause protects the religious and nonreligious alike.” 

The 1954 bill’s sponsor, Rep. Peter Mack, argued ministers should be rewarded for “carrying on such a courageous fight against this [godless and anti-religious world movement].” 

“I agree with plaintiffs that §107(2) does not have a secular purpose or effect,” wrote Crabb, adding that a reasonable observer would view it “as an endorsement of religion.” 

Crabb wrote that “the exemption provides a benefit to religious persons and no one else, even though doing so is not necessary to alleviate a special burden on religious exercise.” 

All taxpayers are burdened by taxes, Crabb noted. “Defendants do not identify any reason why a requirement on ministers to pay taxes on a housing allowance is more burdensome for them than for the many millions of others who must pay taxes on income used for housing expenses.” 

One study has estimated that in total, combined religious tax exemptions cost American taxpayers $71 billion each year.

And now with this one declared unconstitutional I am not sure what the argument would be to protect the rest of the exemptions. Does that mean that we will soon see the day when churches are taxed just like ever other big profit making, politically connected, corporation? Because THAT would be awesome!

Gee I wonder how Sarah Palin will work THIS into her book tour?