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Tom Coburn Tax Decoder Takes On Clergy Tax Abuse

In discussing the abuse of the parsonage allowance, Senator Coburn did not bring up Revenue Ruling 70-549 which allows colleges affiliated with the Church of Christ to pay tax free housing allowances to faculty and administrators, who are members of the Church of Christ.  The most well known beneficiary of this ruling is probably Pepperdine University. The Church of Christ has a priesthood of all believers theology making all members “ministers of the gospel”.  Constitutional scholar Edward Zelinsky, who defends the constitutionality of the cash housing allowance, but believes it is bad tax policy told me that he finds the ruling “unpersuasive” under the existing regulations and case law.

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Federal Tax Exemption Often Not Enough For Local Assessors

Federal Tax Exemption Often Not Enough For Local Assessors

the statute demands, that it be proven that the property for which an exemption is sought be used solely for the charitable purpose.  …

Here, petitioner provided no proofs of ever admitting a patient to Forest Glen without expectation of payment, or for caring for a Medicare or Medicaid patient at the facility. Petitioner asserted the existence of a scholarship fund which was unfunded and never used at Forest Glen. The Tribunal did not err in finding in this instance that the $75,000 write-off was a business practice and not a charity.

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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.