Would The Church Losing Its Tax-Exempt Status Be Such a Calamity?

 

henryV1GLOUCESTER:
I hope they will not come upon us now.
KING HENRY V:
We are in God’s hand, brother, not in theirs.
March to the bridge; it now draws toward night:
Beyond the river we’ll encamp ourselves,
And on to-morrow, bid them march away.

                                                                  Henry V, William Shakespeare

In the wake of the Supreme Court’s decision on the Obergefell vs.Hodges, a major and well funded campaign began to encourage the IRS to revoke the tax-exempt status of the Catholic Church and other non-profit organizations that oppose homosexual marriage. This has caused alarm among Catholic groups like The Catholic League, whose director Bill Donohue warns:

“Anyone who thinks that radical activists will stop with gay marriage is ignorant: The big prize has always been to force the churches to fall in line. …Stealth politics is what the left is good at, and on this issue they will have their unelected surrogates at the IRS do their bidding.”

From a purely financial standpoint the answer to the question posed above is probably yes, it could be a calamity, particularly with regard to a levy on Church property. Yet knowing the true financial impact on the Church would require an in-depth analysis by a major accounting firm. The USCCB might be wise to commission such a study. A lot of dioceses in America are in bankruptcy and if the Church were to be taxed like a corporation she could do what most corporations do to reduce or eliminate their tax obligations. Perhaps it wouldn’t be as bad as one might think. And then there’s the question of whether parishioners would reduce their giving or stop tithing at all, since the tax-deductability of their contribution would be eliminated. Conducting a broad survey on that question might also be wise.

Some think that the government’s removing of the Church’s tax-exempt status is very unlikely. Since the question of homosexual marriage is a religious matter for the Church, it would be seen as a violation of the First Amendment and be quickly overturned by the courts. (Although, in 1976 the IRS successfully took Bob Jones University’s tax-exempt status away because it had a policy against interracial marriage). Others suggest that the political party in power at the time of such a decision would be too fearful of suffering a backlash at the ballot box and they would elect to back off. Continue reading “Would The Church Losing Its Tax-Exempt Status Be Such a Calamity?”