Churchs get a tax exemption because:
1. The ablility to tax something is the ability to destroy it.
2. Congress shall make no law affecting religion.
3. Taxing churchs has the real potential of preventing someone from practicing their religion.
Personally, I don’t think any non-profit group should be taxed, even if it was formed strictly for political reasons.
If I and 100 of my neighbors get together and form a non-profit group specificly to campaign against a candidate that wants to build a highway through our neighborhood, and we each donate $100 dollars to the effort, why should the government get a cut of that?
Individuals exercise political influence by forming groups and pooling their resources and efforts. When the government skims off part of their money as taxes, it reduces their political influence.
“1. The ablility to tax something is the ability to destroy it.
“2. Congress shall make no law affecting religion.
“3. Taxing churchs has the real potential of preventing someone from practicing their religion.”
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But 501(c)3 status is like a contract with the IRS. Once the trustees of a church or any organization sign on the dotted line to acquire 501(c)3 status, the IRS makes the rules. One can say Congress can make no law . . . but they have got the churches through IRS code.
I advise new churches to operate without 501(c)3 status. I also advise them not to incorporate. The unincorporated, non-501(c)3 churches already number into the thousands around the country.