Court Overturns Atheist Victory Against Pastors’ Best Benefit

redleghunter

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Court Overturns Atheist Victory Against Pastors’ Best Benefit
Seventh Circuit rules Clergy Housing Allowance is constitutional, despite challenge by Freedom from Religion Foundation.

JEREMY WEBER

MARCH 15, 2019 6:33 PM

For the second time, a popular tax break for pastors has been judged permissible under the US Constitution, despite efforts by an atheist legal group to prove otherwise.

Today the Seventh Circuit Court of Appeals overturned a lower court’s 2017 ruling that the Clergy Housing Allowance violates the First Amendment.

Offered only to “ministers of the gospel,” the 60-year-old tax break excludes the rental value of a home from the taxable income of US clergy, CT previously reported. GuideStone Financial Resources has called it the “most important tax benefit available to ministers.”

The allowance is currently claimed to the tune of $700 million a year, according to the latest estimate by the congressional Joint Committee on Taxation.

The October 2017 decision by Wisconsin district judge Judge Barbara Crabb had been a victory for the Freedom from Religion Foundation (FFRF), which “jeopardized the benefit for clergy in Illinois, Indiana, and Wisconsin … and many predicted similar consequences nationwide,” wrote CT’s sister publication, Church Law & Tax (CLT) in an analysis.

In today’s ruling, a panel of three judges again refuted the claims of FFRF attorneys, deciding that the allowance passes muster according to two related Supreme Court rulings, Town of Greece v. Galloway and Lemon v. Kurtzman.

“FFRF claims Section 107(2) renders unto God that which is Caesar’s,” wrote circuit judge Michael Brennan. “But this tax provision falls into the play between the joints of the Free Exercise Clause and the Establishment Clause: neither commanded by the former, nor proscribed by the latter.”


More at link: Court Overturns Atheist Victory Against Pastors’ Best Benefit
 

Mark Quayle

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Court Overturns Atheist Victory Against Pastors’ Best Benefit
Seventh Circuit rules Clergy Housing Allowance is constitutional, despite challenge by Freedom from Religion Foundation.

JEREMY WEBER

MARCH 15, 2019 6:33 PM

For the second time, a popular tax break for pastors has been judged permissible under the US Constitution, despite efforts by an atheist legal group to prove otherwise.

Today the Seventh Circuit Court of Appeals overturned a lower court’s 2017 ruling that the Clergy Housing Allowance violates the First Amendment.

Offered only to “ministers of the gospel,” the 60-year-old tax break excludes the rental value of a home from the taxable income of US clergy, CT previously reported. GuideStone Financial Resources has called it the “most important tax benefit available to ministers.”

The allowance is currently claimed to the tune of $700 million a year, according to the latest estimate by the congressional Joint Committee on Taxation.

The October 2017 decision by Wisconsin district judge Judge Barbara Crabb had been a victory for the Freedom from Religion Foundation (FFRF), which “jeopardized the benefit for clergy in Illinois, Indiana, and Wisconsin … and many predicted similar consequences nationwide,” wrote CT’s sister publication, Church Law & Tax (CLT) in an analysis.

In today’s ruling, a panel of three judges again refuted the claims of FFRF attorneys, deciding that the allowance passes muster according to two related Supreme Court rulings, Town of Greece v. Galloway and Lemon v. Kurtzman.

“FFRF claims Section 107(2) renders unto God that which is Caesar’s,” wrote circuit judge Michael Brennan. “But this tax provision falls into the play between the joints of the Free Exercise Clause and the Establishment Clause: neither commanded by the former, nor proscribed by the latter.”


More at link: Court Overturns Atheist Victory Against Pastors’ Best Benefit

I've 3 times for years at a time, been given housing as a perk, or a trade-off of sorts, with employers and friends. Every time I have been straightforward with it with the IRS, and they have said nothing about calling it income.
 
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FireDragon76

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The law seems to be abused by wealthy pastors in megachurches.

How did religion survive before there was such a law? It's only 60 years old.

One supporter of the law compares it to housing allowances teachers and military get . That's not a fair comparison. Those people serve the public at large on behalf of the government. Clergy do not.
 
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Hank77

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The law seems to be abused by wealthy pastors in megachurches.

How did religion survive before there was such a law? It's only 60 years old.

One supporter of the law compares it to housing allowances teachers and military get . That's not a fair comparison. Those people serve the public at large on behalf of the government. Clergy do not.
If housing allowances are taxed then all pastoral housing would need to be taxed for pastors, priests, nuns, etc. who live on church property.
Pastors are given an allowances because the church doesn't have such a property. Providing housing has traditionally been the norm even in Protestant churches in the form of a parsonage.
 
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FireDragon76

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If housing allowances are taxed then all pastoral housing would need to be taxed for pastors, priests, nuns, etc. who live on church property.
Pastors are given an allowances because the church doesn't have such a property. Providing housing has traditionally been the norm even in Protestant churches in the form of a parsonage.

Sure, but a parsonage is different from a pastor getting an unlimited tax deduction for his mansion. And a parsonage is actually church property.
 
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Hank77

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FireDragon76

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A megapastor might capture the attention of the IRS. The average pastor just doesn't have sufficient income to be interesting

Yeah... most mainline Protestant churches do not pay anywhere near comparable wages to the education of the pastor.

Whereas somebody like Joel Osteen, for instance? He has little education in comparison. Yet he rakes in big money.

I don't blame unbelievers for being upset by these sort of exemptions. People should not get lavish profit off ministry of the Gospel. It's an oxymoron, as Kierkegard pointed out scathingly, pastors preach "You must die to the world", all the while they collect money for their vacations in the country.
 
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