(Community Matters) A good friend makes a great point. Why is the Catholic Church’s tax exempt status not being challenged given its increasingly political plays: 1) against specific legislation, 2) against specific candidates, 3) blocking LGBT equality, 4) against healtcare if includes reproductive rights. It’s gone beyond philosophical prosthelytizing to grassroots organizing.
Given the increasingly active political role some churches/congregations want to play, I’m wondering if it isn’t time to do away with the charitable deduction for contributions to religious organizations?
Religious giving usually accounts for a third of total charitable giving, so this means $100 billion plus. At a average tax rate of 20%, that would mean at least $20 billion in additional tax revenues – nothing to sneeze at. Maybe an opt out provision – if an institution doesn’t want the right to participate politically as a organized body, its donors could continue deducting their contributions.
before people start yelling that I’m being anti-religious, religious giving accounts for the largest component of our annual charitable giving. I am not bashing religion
Community Matters 
I’m a church-going Catholic with some interest in politics and I don’t think it’s that bad. Point 1 – pretty rare that this happens. Point 2 – I’ve never seen this happen. Never seen the church explicitly oppose a candidate at the local, state, or national level. If anything, the cool-headed church leadership keeps a lid on a faction of the laity who would like to politicize things even more. There are plenty of Catholics who want the bishops to issue a voters’ guide every election season. (They have wisely and consistently refused to do so.)
But hey, I’m all for removing the tax-exempt status of churches and for that matter, all charitable organizations. Why should contributions to charity be tax deducible? For that matter, let’s remove the differential between the capital gains tax rate and the income tax rate. Both charitable deductions and low capital gains taxes seem like ways for rich people to reduce their taxes. Both are part of our overly regressive tax system.
Good points Eugene. It surprised me to see Catholic Church leaders quoted in the New York Times taking credit for pressuring the state legislature to vote down equal access to marriage for all citizens. It’s one thing for clergy to take broad moral positions from the pulpit but seems to clearly cross the line when the men making a career in the business of organized religion use their considerable (tax-exempt) influence to manipulate legislators. Perhaps a visit from the IRS would get them back on mission.