Clergy Housing Tax Break Ruled Unconstitutional – Again
It’s deja vu all over again in the United States District Court For The Western District of Wisconsin as Judge Barbara Crabb rules that Code Section 107(2) – the parsonage exclusion- is unconstitutional. The parsonage exclusion allows “ministers of the gospel” to exclude from taxable income payments designated as housing allowances that they actually spend on housing. In this ecumenical age “minister of the gospel” is expansive including not only your classic minister like my blogging buddy Southern Baptist Reverend William Thornton but also rabbis, cantors, imams and, subject to the right conditions, the occasional college basketball coach. Usually, the benefit is pretty modest and many moderately paid ministers would probably give it up in exchange for a FICA match, but in the case of the megapastors of megachurches and televangelists, the allowance can and does run into the hundreds of thousands.
FASB Confirms Corporate Rate Cut Has Immediate Effect On Earnings
Berkshire Hathaway has the largest positive adjustment – $33 billion. That is more than Berkshire’s net income of $27 billion in 2016. Next is AT&T with a $25 billion positive adjustment. That is even more dramatic than Berkshire when you consider AT&T’s $13 billion net income in 2016. The positive effect on Verizon is $20 billion compared to net income of $13 billion in 2016. Comcast’s earnings rise by $15 billion, Pfizer and Exxon Mobil have $13 billion positive adjustments.
Negative Income Adjustments Over $5 Billion
The biggest loser is Citigroup with a $20 billion negative adjustment followed by $15 billion for General Motors $9 billion for AIG and $8 billion for Bank of America.
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Over and over again courts have said that there is nothing sinister in so arranging one’s affairs as to keep taxes as low as possible. Everybody does so, rich or poor; and all do right, for nobody owes any public duty to pay more than the law demands: taxes are enforced exactions, not voluntary contributions. To demand more in the name of morals is mere cant.