Brian Galle of the Florida State College of Law has an interesting commentary about the LDS (Mormon) church’s role in supporting California’s Proposition 8 and the Federal Law of Charities. His main point is that current law’s 10% of resources permitted to non-charity activities makes it easy for large charities, like the LDS Church or United Way, to have a big impact politically when they choose:
It is hard to see a good justification for a rule that would, in effect, grant political influence only to the largest charities, but that seems to be one plausible interpretation of current law (albeit an interpretation I argue against here). Further, recent events show again that the IRS so far has failed to grapple with the most important questions surrounding the rules against lobbying, such as the problem of how to value the use of mailing lists, web sites, e-mail, and phone trees – tools that now are central to modern politics.
I’m the odd man out here I suppose. I believe tax deductibility of donations to churches violates the church and state provisions of the Constitution. As a matter of fairness, I think it wrong for church goers governmental consumption to be subsidized by those who don’t profess their faith. Nor does it seem fair that church goers get to specify how their money is spent while those that don’t donate have no say beyond their miniscule voting power.
As an example, it bugs me that as a substantial taxpayer I subsidize mosques that support terrorism. It may bug you that you have to support religions that treat woman differently than you prefer. And it may bug somebody else to support any religion since they are an atheist.
Churches (and especially the LDS church) do a ton of good in this country. But that isn’t the issue. The Constitutional separation of church and state does even more good in that it encourages the flourishing of churches.
Like I said… I’m the odd man out. But I don’t think true charity needs to be subsidized by others.
Via TaxProf (http://taxprof.typepad.com/taxprof_blog/2008/12/galle-.html)
December 12th, 2008 at 11:53 am
Ah yes, the inequities of the tax code! Everybody has a better idea. At least continual playing with tax breaks gives the politicians something to do with their idle time. Interests and their lobbyists keep Washington green with all the money they spend grasping for tax breaks. Business is especially welcome in DC because it spends really big cash for expense accounts and lawyers to get really big favoritism. The US Chamber of Commerce has a particularly grand neo-classical building across the square from the White House.
December 12th, 2008 at 11:55 am
This is basic constitution 101.
You know I favor a flat tax and amendments to specify that equal protection applies to revenue raising.
December 12th, 2008 at 9:51 pm
Substitute “union dues” for “charity” then look at what’s deductible on a 1040.