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this post was submitted on 02 May 2025
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politics
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aren't their exemption because it's "non profit"?
(without a doubt the IRS need to go after megachurches though)
if a church or any religious establishment is working properly with no profit, then no need for taxes anyways.
In order to maintain tax exempt status, churches may not engage in politics. That means no supporting a political party or political candidates. Most churches are in violation of that rule which makes them taxable just like the Democratic or Republican parties.
You have to understand what profit is.
If I make a church, collect 1 million from my congregation. Then, I pay myself 1 million for the job of being the pastor.
My business, the church, is non-profit. It had 1 million in revenue and 1 million in expenses. No profit.
Now, I would be dumb to pay myself the million as a salary because then that million gets income taxed. I'd "buy" 1 million dollars worth of bibles for Uzbekistan and never fulfill the order or something. Launder it.
The idea of why the church doesn't get taxed is sound. People pay income tax, church collects taxed income, church spends taxed income to better community.
They are essentially supposed to be a middle man. If i took my taxed income and donated it directly to buy bibles for Uzbekistan. Then it doesn't make sense for my money to be taxed again. So if i give my money to the church and they give it to Uzbekistan, then why tax it?
Problem is our tax code has loop holes
A church was never supposed to buy a private jet. Yet it has become a business expense.
Tax everything above their operating costs.
Is a private jet an operating cost?
only if god wants you to have it.