Southern Baptist Leadership Unconcerned About Clergy Abuse Of Tax Break For Housing
How does a senior pastor who might make $80,000 per year explain to the teachers in his congregation that even though their entire salary is subject to income tax, his is not? On top of that, denominations are going to have to spend a lot of their limited moral capital in defending the exclusion.
Judge Declares Tax Exclusion For Clergy Housing Payments Unconstitutional
The last time there was a threat to the parsonage exclusion, Congress acted with alacrity. The IRS was at odds with mega-church minister Rick Warren over whether his housing allowance should be limited based on the value of his house. The Ninth Circuit questioned whether the housing allowance was constitutional and appointed Erwin Chemerinsky to serve as amicus curiae (I’m wondering if the ministers might have thought of him as advocatus diaboli). Congress amended the Code to conform with the IRS interpretation thereby mooting the case.
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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.