What Religious Exemption Costs Everyone to Maintain

[Beemer]

http://www.secularhumanism.org/fi/vo...ragun_32_4.pdf

After reading this research I figure churches should be 1/3 tax exempt at most.

$71 billion injected back into the country (probably no different in Canada, only the amount) per year would help out a lot.

[MegalosSkylaki]

"The power to Tax is the power to destroy."--United States Supreme Court

[MegalosSkylaki]

It is correct that there is a huge abuse of religious tax exemption by organizations whose connections to religion as I understand is tenuous at best and non-existent at worse.

Religion has two componants: Piety and Spirituality in the words of one thinker who name I don't recall for the nonce.

While works for the poor is not part of this definition, the organizations that are outside of this definition--or for that matter any reasonable definition thereof--who abuse the tax exemption makes this a genuine problem.

Unfortunately, it won't be readily solved. Joseph Campbell in his expertise on Mythology once defined mythology as someone else's religion. In the circumstances to "call out" the falsely religious" for tax purposes would be an enormously difficult undertaking.

MegalosSkylaki

[tony_j15]

Here's a hardly thought out idea OTTOMH: get rid of the tax-exempt status for organizations, but only tax them on money held. IOW, if funds are donated then spent, no tax on the transfer. But if the organization is holding funds, those get taxed. If the entire point of these organizations is to be involved in charity work, then they shouldn't have a whole lot of money on hand.

[Beemer]

Good call Tony. That would create a situation where minimal monitoring would be necessary and would fit in well with IRS reporting requirements. Wouldn't have to create another government agency to watch over religious accounting ideals.

[MegalosSkylaki]

I think there is some misunderstanding as to whether a Religious Organization has to engage in charitable activities as the author of the article implies, or at least, should engage in such activities. The Internal Revenue Service (IRS) makes no such requirement and cites Five (5) types of Not-for-Profit Organizations that are deductable for Income Tax purposes. I have listed only Item One below.

Generally, only the five following types of organizations can be qualified organizations.

A community chest, corporation, trust, fund, or foundation organized or created in or under the laws of the United States, any state, the District of Columbia, or any possession of the United States (including Puerto Rico). It must be organized and operated only for one or more of the following purposes.

Religious.

Charitable.

Educational.

Scientific.

Literary.

The prevention of cruelty to children or animals.

Certain organizations that foster national or international amateur sports competition also qualify.

While praiseworthy, charitable work is only one of several types of activities and even the item it is found included in is only one of a larger five types of organizations.

Interestingly, contributions by Americans to Canadian orgs --by Treaty--can also be deductable...err...should there be any Canadians around.

For the other four Deductable type of Orgs, Go to >>> Publication 526 (2011), Charitable Contributions

Here's a hardly thought out idea OTTOMH: get rid of the tax-exempt status for organizations, but only tax them on money held. IOW, if funds are donated then spent, no tax on the transfer. But if the organization is holding funds, those get taxed. If the entire point of these organizations is to be involved in charity work, then they shouldn't have a whole lot of money on hand

I am not so optimistic as to the efficacy of this tactic. I am sure the worst abusers will simply just be happy to spend the money right away--on themselves!

Later I will comment on what I believe is the historic source of this problem and oddly enough, it is theological.

Hint: read up on the "Justification Controversy"

MegalosSkylaki

[pickel]

Here's a hardly thought out idea OTTOMH: get rid of the tax-exempt status for organizations, but only tax them on money held. IOW, if funds are donated then spent, no tax on the transfer. But if the organization is holding funds, those get taxed. If the entire point of these organizations is to be involved in charity work, then they shouldn't have a whole lot of money on hand.

Without "Tax Exempt"status, how are the Catholics going pay off all the judgments ,that , I'm sure, will continue to plague their community ???

[MegalosSkylaki]

Without "Tax Exempt"status, how are the Catholics going pay off all the judgments ,that , I'm sure, will continue to plague their community ???

This is an issue separate from the original Post regarding the deductability of contributions to Religious and not-so-religious orgs. Having said that, let me pro-offer a possible solution that is similar to that of the Cigerette companies wherein they acknowledge guilt, provided a Fund, and any cases were adjudicated by some arbitration commission with a minimum and maximum fee fixed for attorneys and payments only for actual damages and include pain and suffering with caps.

This would allow genuine victims to recover an appropriate amount with minimum expense and travail and the Church not to be forced into bankruptcy as it has in some Archdiocese like San Diego. Under the present system, the victim loses up to 40% to the lawyers while the Church has huge legal expenses even if it prevails in Court. Also, some victims don't want to be twice-victimized by an open trial and don't come forth so the proceedings could be kept confidential.

[Epidemic]

the victim loses up to 40% to the lawyers while the Church has huge legal expenses even if it prevails in Court. Also, some victims don't want to be twice-victimized by an open trial and don't come forth so the proceedings could be kept confidential.

Actually the original lawyer filing the class action law suit to set up the fund for victims will collect 40% off the top there. The victims still are out 40% or rather the organization ends up paying 40% more than they should to cover lawyers fees and compensation to victims.

[MegalosSkylaki]

Actually the original lawyer filing the class action law suit to set up the fund for victims will collect 40% off the top there. The victims still are out 40% or rather the organization ends up paying 40% more than they should to cover lawyers fees and compensation to victims.

It would have to be done as a matter of legislation so as not to have all that.

But let's return to the topic--which is charitable contributions.

Can someone explain to me why whaling nowadays enjoys a $10,000 Charitable Deduction according to the IRS?

If you don't believe me, see

Sunday Morning in NY and GOOD MORNING Everybody.

for the goods on how to claim your whaling charitable deduction.

Capt. MegalosSkylaki

[tony_j15]

Whaling > Eskimos > Sacred Activity > Religious > Tax Deductable. Just cuz they get their god on by huntin' blubber instead of doing Mass don't make it no different.