Heckle: Representation without taxation: Why we should end tax exemptions for churches

Michael Heckle

Religion is a billion-dollar business. Evangelical profiteers such as Joel Osteen, Pat Roberton, and Kenneth Copeland make millions of dollars a year by exploiting the desires of the faithful. And they do it without pay a single cent in taxes. Under Section 501 (c)(3) of the Internal Revenue Codes, churches and religious organizations are considered non-profit and given almost every tax exemption imaginable. However, the rules are fairly clear: in order for a church to keep its exempt status, it must be, of course, non-profit, and refrain from entering the political sphere.

Yet, with recent legislative action toward the implementation of gay rights as well as the legality of abortion, the religious businesses that masquerade themselves as churches have no qualms endorsing any right-wing bigot of their choosing. This, along with the massive profits received by megachurch reverends and televangelist call in to question the legality of such a tax exemption. Furthermore, the privilege of a tax exemption directly contradicts the notion of separation of church from state.

Behind an army of private jets and within the halls of million-dollar mansions, Kenneth Copeland, founder of Kenneth Copeland Ministries, holds a net worth of $760 million of tax-free indulgences. Despite the claims made by his church that no one received inappropriate benefits from tithing made to the church, Copeland is able to live in the lap of luxury whist, giving nothing back to the government or his patrons. Although there was a minor investigation conducted by the Senate in 2008, no legal action was ever taken, and the church still maintains its tax exemption status.

Copeland’s profiteering is not unique. The top 15 richest preachers in the United States are worth upward of $1.1 billion, all considered to be “non-profit.” Despite the moral and theological disconnect of the “rich pastor,” the deficit created by leaving the religious rich tax exempt leaves the public, religious or not, to foot the bill.

The reasoning behind tax exemptions for churches lies in the hope that they will provide charity to those who need it. While many churches do fantastic work for the poor not only in local communities but also all around the world, the abuse of religious tax exemption is rampant. The Mormon Church, for example, spends only .7 percent of its annual income on charity and only 29 percent on what the church defines as “helping the poor.” Considering that 71 percent of the annual income of the Mormon church goes to “operating expenses,” it’s hard to find the non-profit in this organization.

Yet, even more rampant than the abuse of funds among religious organizations is religions’ unwarranted impact on politics. More than 212 religious organizations spend more than $390 million a year on lobbying, with more than 80 percent of the groups holding a tax exempt status. Furthermore, almost every religious organization pushes their own political agenda on their followers and those around them. While a religious doctrine can call for a certain political view, it is unfair to allow those who do not pay into the system to have an impact on legislators.

Tax exemptions for churches don’t protect religion from the state, as many argue. By allowing churches to have a voice in politics without paying their fair share, the government has succeeded in developing a culture of religious privilege that is easily exploited. Even more disconcerting are the qualifications for religious tax exemption. During a broadcast in 2015, John Oliver proved just how easy it is to qualify for tax exemption status under the current IRS laws. By merely filling out paper, Oliver created a pseudo-ministry and received thousands of dollars of tax exempt currency from fans.

While the IRS is required to audit churches it suspects to be abusing their religious privilege, it completely suspended audits for Churches from 2009 to 2013, after which it audited merely three churches from 2013 to 2014.

Tax exemptions and subsidies on religious organization cost the United States more than $71 billion a year. This staggering amount of lost revenue, along with rampant abuse and inappropriate political influence make it nearly impossible to justify the incredible amount of exemptions that churches receive. While the good work of religious organizations must be given credit, it is not a justification for the unfair and exploitative tax laws of the United States.