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For the first time in American history, churches owe an income tax to the IRS – something ERLC President Dr. Russell Moore calls “a shocking change in the federal government’s orientation toward these organizations of goodwill” in an op-ed published this weekend in The Wall Street Journal.
Writing about a provision in the Tax Cuts and Jobs Act of 2017 that taxes non-profit organizations – including houses of worship – for the cost of parking and transit benefits provided to employees, Dr. Moore articulates why members of Congress must repeal this provision.
Here are some other excerpts from the article:
“A little-noticed provision in the Tax Cuts and Jobs Act of 2017 now looms over faith communities in America, raising serious questions about religious freedom and the First Amendment. While this provision is a relatively small piece of the overall package, the effect of the policy it created will be felt by the faithful around the country. This change is a new policy to tax nonprofit organizations—including houses of worship, like the Southern Baptist churches I serve—for the cost of parking and transit benefits provided to employees. This effectively creates an income tax on churches.”
“This new tax would extract $1.7 billion from the charitable sector over 10 years. Whatever purpose Section 512(a)(7) was intended to serve, it simply cannot justify taking this $1.7 billion toll on churches and charities. Ultimately, this isn’t a levy on the organizations. It is a tax on the people and vulnerable communities they serve.
“Beyond the practical downsides, Congress should also consider first principles. Taxing houses of worship is deeply un-American—no matter how large or small the tax burden. The proper separation of the state from the church is at the heart of the American project. As the Founders understood, the power to tax is the power to destroy. Tax laws don’t exist to give special privileges for religious organizations. They are meant to recognize that, unlike in other places and at other times, the state here doesn’t regulate, or subsidize, the worship of God.
“This summer Rep. Mark Walker introduced H.R. 6460, the LIFT for Charities Act, which would fully repeal Section 512(a)(7) from the code. Likewise, Sen. James Lankford introduced a Senate version of the bill in August. The two pieces of legislation move the conversation closer to a sensible change in course from the current detrimental path of taxing nonprofits. By striking this new section of the code, the LIFT Act would eliminate this new tax burden and operational impediment on churches and nonprofits.
“Sunday school children can tell the tax collector: Jesus loves you. He’s happy to have you at church. But he doesn’t work for you.”
If you're a WSJ subscriber, you can access the full article here.
