Time to start taxing churches

Kelly A. Powell is a resident of Independence, Ky.

Let’s face it, the world needs help. The human population has skyrocketed, and the need for charity is greater than ever. Continuing to give churches humongous tax exemptions is an outdated provision, left over from the days of our Founding Fathers. This very generous tax-free existence desperately needs to be re-examined. In these tough economic times, the American government cannot afford to continue on the same old path.

The world has changed, and we have to start thinking about the 7.5 billion people on the planet. It is time for churches to accept responsibility, support citizens, and pay taxes – at least some. A University of Tampa study concluded that granting churches this tax-exempt status is taking away about $71 billion or more from our economy every year. Furthermore, U.S. churches own an estimated $300 billion to $500 billion in untaxed property.

The Lakewood Church in Houston, TX, for example, boasts the country’s largest congregation, and earns $75 million in annual untaxed revenue. The Church of Scientology's annual income exceeds over $500 million. Pastor Kenneth and Gloria Copeland, leaders of Kenneth Copeland Ministries, live in a church-owned lakefront parsonage, worth $6.2 million, tax free.

According to the Tampa study, 71 percent of church revenues are allotted primarily to operating expenses. The Mormon church, like many other churches, spends only 0.7 percent of its annual income on charity. Compare these numbers to the American Red Cross, and the numbers are reversed. The Red Cross allocates 92.1 percent of its annual income for charitable assistance, and only 7.9 percent on operating expenses.

U.S. churches have officially received these federal income and property tax exemptions since 1894. Traditionally, the government granted these tax privileges to churches because of the presumed positive contributions they are making to the community. Churches not only avoid taxes, but also dodge any requirement to disclose their finances as well.

Another problem? The current tax code makes no distinction between authentic religions and fraudulent start-up churches. In 2010, Oklahoma awarded tax exempt status to Satanist group, The Church of the IV Majesties.

I am not saying to drown these churches, or remove all the perks, per say. They do serve a purpose and need community support. However, maybe some tax should be at least imposed on churches who generate a certain high level of revenue. However, this re-examination should in no way allow the governments to shut churches down for non-payment of taxes.

As a United Methodist pastor’s daughter, I admit, that I too have enjoyed the luxuries of the church, and a stress-free childhood growing up in our beautiful tax-free parsonage. This was usually a five-bedroom home worth $200,000 or more. I have seen first-hand the unnecessary extra perks given to the pastor of the church even beyond the tax exempt status.

No matter how humble its beginnings, the church has now become big business. From my perspective, the church has become a cross between a booming economic business, and a social club. The amount of charity given, no matter how well intended, is not enough. The humanitarian effort we now witness does not equal the amount of revenue some these organizations generate.

Do we really need a giant Jesus statue on the side of the highway, or would that money have been better spent helping to aid people in need?

Tax churches. Feed the world.