For several decades, the laws surrounding tax exemption of churches have fluctuated.
In 1913, tax exemption for churches was permanently reinstated. The criteria for an organization being tax exempt in the U.S. is fairly strict.
For the most part, unless the organization is a nonprofit, it will be taxed. Generally, churches fall under this criteria, so they are able to take advantage of this law.
One of the biggest issues that arises from allowing churches to be tax exempt is that the criteria for being legally identified as a church is fairly loose.
Basically anyone can purchase a building with no real intention to be a church, gather some religious leaders and followers, set up a service once or twice a week and claim they are a church to the IRS, letting all of their property taxes be exempt.
People can continue doing this as many times as their bank account can handle, offering a hack to become very wealthy off of their properties and donations.
Kenneth Copeland, a televangelist preacher, is a notorious example of someone taking advantage of this system. Despite having a net worth of $760 million, he still strongly encourages people to donate to his church, even during the COVID-19 pandemic when many were struggling financially.
Additionally, he has gone on record saying things that are harmful and disrespectful, such as his reasoning for constantly flying using a private jet being that commercial flights are “long tubes (filled) with a bunch of demons.”
Many churches have profited off taking advantage of others, often using that money for selfish purposes. There are lots of other harmful practices that churches can get away with.
Under federal law, churches are also exempt from some anti-discrimination laws, specifically when it comes to employment.
This means churches set the criteria for what they deem “appropriate” for their employees, allowing them to only hire people who follow their values. The government claims that it is against discrimination, and yet it still funds organizations who are openly discriminatory. If the tax exempt law were to remain, then the government should at least ensure that churches are not exempt from anti-discrimination laws.
Above all, churches being tax exempt is arguably unconstitutional. Separation of church and state, as stated in the first amendment, declares the government cannot subsidize religion.
Given the government allows tax money to fund churches, it is directly contradicting that amendment. Furthermore, while charities are required to report their income to the IRS, every church is automatically exempt from taxes, which is also unconstitutional.
Because churches are primarily funded by taxes, every single person who pays taxes is forced to support religious organizations, whether they like it or not. Unlike other nonprofit organizations that have the potential to help different groups through charity, not everyone will be helped by churches. In fact, it could be quite the opposite as mentioned before.
No one should be forced to pay for something they aren’t getting any benefits from.
The main source of income for churches should only come from those who attend or support it, and those profits should be taxed.
If people really want to support something, they will likely provide some financial assistance. This may also encourage wealthy religious leaders to fork some more of their cash over in order to keep their congregation.
