Court rejects atheists’ demand to end tax-exempt clergy housing

[trotsky]

http://www.religionnews.com/2014/11/13/court-rejects-atheists-demand-tax-clergy-housing/

A federal court of appeals rejected a case brought by an atheist organization that would have made tax-exempt clergy housing allowances – often a large chunk of a pastor’s compensation – illegal.

...

Thursday’s (Nov. 13) ruling means pastors will not have to pay taxes on up to $500 million in compensation, according to Becket Fund figures.

But the Freedom from Religion Foundation, a Madison, Wisc.-based First Amendment watchdog group that has pursued the case since 2011, vowed to fight on.

“We are disappointed but we are not giving up,” said Annie Laurie Gaylor, FFRF’s co-president. “We are so clearly right and the law is so clearly unconstitutional.”

[hrmjustin]

1. I have a bunch of friends who will be happy.

Rents in NYC are too damn high!

[Gelliebeans]

2. I hope

they do continue to fight on!

[trotsky]

3. Indeed.

At the very least, this provision is being abused to provide what amounts to taxpayer subsidies for ridiculous mansions.

[Gelliebeans]

4. Exactly

The "perks" of the job. It is ridiculous when you look at the money these organizations have collected including free housing, and people tithe to pay for this... im sure that low-income people from these churches would like a warm roof over their head too?

Edited to add;
Between parishioners being able to write off charitable contributions including miles for the charitable deeds and churches able to escape the death and taxes the rest of us pay, it seems inhumane that the free housing only extends to the clergy.

[hrmjustin]

5. Clergy do not get free housing always.

Most denominations don't provide that.

[Gelliebeans]

6. I did taxes and accounting

Very rarely did I do the taxes of a paster, minister etc that didn't get compensated with property or income. By the way, that has a FMV (fair market value) that needs to be established in order to determine whether they meet the threshold of poverty and thus pay no tax whatsoever.
Publication 17 says different, the amount of tax exempt perks is ridiculous.

http://www.irs.gov/pub/irs-pdf/p517.pdf

[hrmjustin]

7. My priests get housing allowances but that counts toward their salaries.

[Gelliebeans]

8. like the military and quarters

I understand that and I don't want you to think I am singling out YOUR pastor but 20 years and many many tax returns has taught me that when a schedule C is used for a tax return most if not all usually end up paying NO TAX. These arent my claims, it is the claim of the taxpayer. I work in one of three states only that require me to be licensed and bonded so I do take what the taxpayer says as truth under penalty of perjury.

They may be subject to the SE tax but ministers etc can and have asked to be exempt from that. The requirement is two years service and not consecutively. This is just the federal income, some also enjoy the luxury of a refundable credit ie earned income credit (if ministering isn't their full time occupation)

Income in kind as you have stated is benefited by deductions and expenses. That doesn't even account for those that have taken a vow of poverty. They may also be allowed the ability to participate in a Roth ira which as you know is not taxable when you withdraw it.

The reason we don't tax social security for our seniors and disabled is because the money they receive is half of what the poverty line is and what other dividends or interest they live on. But a senior usually doesn't have the benefit of deductions or expenses or even incorporation or LLC.
I will respectfully say that the loopholes for the clergy and their income in kind is ridiculous. Especially when you compare it to the poor.

[hrmjustin]

9. The fact is most clergy do not make much to begin with.

[Gelliebeans]

10. Maybe not a priest

Or nun. But clergy by definiton of the IRS code is anyone.

"Ministers are individuals who are duly ordained, commissioned, or licensed by a religious body constituting a church or a church denomination, including Christian scientists"

I think we are discussing two different types of animal here. A vow of poverty from a priest is going to have a different income then say.....a minster at a mega church and the ones in between. There are thousands more ministers that haven't taken a vow of poverty than there are a nun or priest or someone that has taken a vow of poverty.

The people abusing the system is where the argument should lie. There are many more of those types than your "pastor"

[hrmjustin]

12. No. i am Episcopalian so I should have said so.

Second most RC priests do not take a vow of poverty.

Third most clergy are not mega pastors and large number of them need a second job because they need to supplement their income.

[Gelliebeans]

14. Please read what I wrote

I'm trying to be respectful of your opinion.

[hrmjustin]

15. I think you have been respectful and I think there is room for reform.

[Gelliebeans]

16. We can agree on that

tax reform period is a thorn in my side...seeing many truly middle class people paying more in state and federal tax and knowing the very loopholes some of the largest corporations have and continue to exploit. Most people don't even know how much is being shuffled around under mountains of government-ease paperwork that they just give up and accept the status quo.

[Gelliebeans]

11. I'm not trying to be obstinate Justin

I have actually done thousands of tax returns in a red county in a blue state that would say otherwise. My point is that everyone should pay taxes and pay them based on their income. Now whatever the consensus of the best tax code would be is up to the majority.
But a clergyman or woman should not get out of paying taxes for good deeds done...when a social worker that does good deeds has to pay taxes. I'm looking for equality on this.

[hrmjustin]

13. I understand how some think it is unfair.

[MellowDem]

17. I love the smell of religious privilege in the morning

[Gelliebeans]

18. I would like to

Think or at least hope that followers of these churches would be pissed off that their hard working money is going to subsidize housing in an organization that pays NO tax in the first place and can afford to