The vital separation of churches & the IRS

“I am proud to be paying taxes in the United States. The only thing is I could be just as proud for half of the money.”   Arthur Godfrey

  Would it make a difference to you? Imagine that you’re driving through some unknown city late in the evening. Inadvertently, you hit a pothole and blow a tire. It’s dark. You don’t really know where you are or what kind of neighborhood that you’re in. As you’re surveying the situation, you see a group of a dozen or so young men coming your way down the street. So would it make a difference to you if they were coming from a local video arcade or if they’d come from a Bible study at an area church?

  The answer is obvious. You’d feel safer if you knew they’d just left a Bible study. In fact, the odds are greatly increased that if they were coming from a Bible study, they might even stop and offer to assist you.

  This coming Tuesday (April 15^th) is D-day. We file our income taxes. Corporate taxes are due a month earlier, March 17^th. Though our church is incorporated, our church is tax exempt. For generations, churches have been exempt from both income and property taxes. In Wisconsin, we’re also exempt from sales tax. Since the birth of our country, when it comes to churches, it’s hands-off for income taxes, property taxes and more.

  As our culture becomes more Post-Christian, that greatly irritates many anti-religious individuals and groups. They insist that since churches benefit from services provided by the government (police & fire protection, etc.), it’s not fair that they pay nothing for those services. The argument goes that it’s not fair that everyone else has to pay more taxes to take care of the non-taxed church. They see it as an inequality protected under the law. Ask any governmental leader, it’s also a constant topic of debate as government looks for new sources of revenue.

  Let me say that first of all that tax exemption for churches or a lack of tax exemption is not a biblical issue. As New Testament Christians, we have a new citizenship, “Our citizenship is in heaven, and from it we await a Savior, the Lord Jesus Christ” (Philippians 3:20). While Jews under the Old Covenant had a Theocratic government, in that God was their King, and lived under a Theocracy, in that the civil leader had direct personal connection with God, that’s not the case for us under the New Covenant. 

  Then, Christians live and have lived under every type of government: Democracy, Dictatorship, Communist, Socialist…to name a few. We are responsible to obey our government and faithfully serve the Lord whatever the political environment (Romans 13:1-7).

  While we are blessed in America, in that we are given tax credit that we can write off for financially giving to our church, it’s an American right, not a biblical one. Some day, too, we may lose it. Christians will then have to choose to be obedient to God and still give even if there’s no tax benefit. Christians are commanded to be faithful and generous managers of the money God has given them and give to their local church no matter what.  

  But while tax exemption for churches is an American right, it’s also fiscally responsible for government to not tax churches. Why?

  Churches encourage committed marriages. Marriage is the foundation of a healthy society. The church discourages divorce, adultery, even lust. It encourages commitment and martial problem-solving, rather than bailing out of the marriage at the first sign of trouble. Other groups or institutions in society don’t typically do that. This commitment to marriage is beneficial to government in that married people are better taxpayers because they usually earn more. Studies show that they tend to be healthier, both physically and mentally, than their non-married counterparts.

  Churches promote healthy families. The Bible commands parents to love their children, to provide for them, discipline and be responsible for them. It commands healthy parent-child relationships (Ephesians 6:1-4). Study after study shows that children living with both a Dad and a Mom do better in school and are healthier socially and emotionally. Rather than being a burden on society, they’re more likely to be a blessing. There’s a greater potential that they will become contributors themselves to society.   

  Churches advocate a strong work ethic. Scripture commands us to work and use the abilities God has entrusted to us as a stewardship. We’re not to be indolent or depend on others to care for us. Work and creativity are a stewardship of our gifts from God. Since the Reformation, the Protestant work ethic has helped define society. It's a vital concept in theology, sociology and economics that emphasizes hard work, frugality and diligence as a testimony of one’s salvation and the reality of their faith.

  Churches encourage literacy and education. The first book ever printed was the Bible. Many universities and colleges were founded by Christians. The Bible is a book that’s to be read, contemplated and thought about. Nearly every place where missionaries have gone, literacy increased and schools were founded. Historically, the church has also been one of the greatest promoters of the Arts.

  Churches encourage compassion for the poor, disabled and disenfranchised. Christians are commanded to take care of their own aging parents. That alleviates some of the financial burden from the State. The church helps and takes care of its own poor. Addiction and substance abuse are discouraged in the church. Counseling, mentoring and emotional support is often given to those seeking to break the cycle of addiction. Nearly every social organization that helps the disenfranchised was started by Christians. Compassion for others is commanded throughout the Bible.  And studies have shown that committed Christians are typically more generous than non-believers. They also tend to give to causes outside of their faith more consistently and generously.

  The reality is that some day churches may lose their tax exemption. Those in political power are often very shortsighted when it comes to the innumerable benefits of social revenue in their often insatiable quest for more fiscal revenue. If you think taxes are high now, can you just imagine how much higher they would be if the government had to provide all of the “services” that a local church does every day as part of its mission?