Huckabee's church tax plan

It's time for churches to reject tax exempt status completely; freedom is more important than government financial favors.
— Gov. Mike Huckabee (@GovMikeHuckabee) June 11, 2013

The practical reasons why this won't happen are pretty insurmountable. 1. Giving would likely decline. 2. Churches' paperwork would increase. Those practical problems likely far outweigh any ideological issues of church-state relationships for the vast majority of American pastors.

That said, those ministers who object to the conditions of tax exempt status, specifically the limitations on political speech as a violation of their freedom, are really being pretty silly. Anyone who knows how these things work -- and the pastors know -- knows that all they have to do is reject tax exempt status.

If politics from the pulpit is a God-given right, then don't trade it for porridge.

For most, though, seriously, not being bogged down with paperwork and offering wealthy donors tax deductions on their tithes does more for their ministry, as they see their ministry, than an annual who-to-vote-for sermon ever would.

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Teachers v. church schools v. the government

The conflicting claims of legal rights of church teachers and church schools are being further tested in the federal courts.

In California this week, a federal judge ruled in the case of Family, Life, Faith and Freedom v. Lynda Serrano. In this case, a Calvary Chapel school sued two former teachers to prevent them from suing the school.

The teachers refused to submit statements of faith and pastors' recommendation letters, a year ago, and they were let go. The school deems its teachers to be "spiritual leaders," and considers the paperwork necessary in evaluating instructors' continuing spiritual leadership qualifications. It's not clear from the court documents why the teachers did not want to explain their faith and get pastors to write them letters of recommendations, but when their contracts were not renewed, they threatened to sue for wrongful termination. The church school then took its former teachers to federal court.

The lawyers for the school argued that if the teachers were allowed to make the case they had been discriminated against, that would violate the church's constitutionally protected right to the free exercise of religion.

Judge Dolly M. Gee, an Obama administration appointee, granted the teachers' motion to dismiss the suit on Tuesday. Interestingly, the ruling doesn't go so far as to say the teachers can sue their religious employer, but does say federal law cannot prevent them from filing wrongful termination suits in state court.

Gee wrote:

it is apparent that Plaintiff’s entire complaint consists of anticipated defenses to a yet-to-be-filed state court religious discrimination suit, and thus no federal question is raised. This Court therefore has no subject matter jurisdiction.

The judge criticized the lawsuit fairly harshly, calling the school's lawyers incompetent several times, and suggesting the suit was meant to harass and intimidate the ex-teachers. Some of the school's arguments would have been "dispelled by a modicum of competent legal research," Gee wrote. The church was ordered to pay the ex-teachers' lawyers' fees.

The school, for its part, will reportedly appeal the decision.

This case connects to the landmark Supreme Court decision handed down last year, where the court ruled the First Amendment right to free religious exercise entails a "ministerial exception" to laws against employment discrimination. In Hosanna-Tabor v. EEOC, the Supreme Court decided religious groups get to establish their own standards for determining who is a minister, and that if someone is considered to be a minister, they are not entitled to protections against employment discrimination. Ministers can be fired for basically any reason.

The Hosanna-Tabor case involved a "called" teacher at a Lutheran school. She got sick, went on sick leave, and then when she was approved to go back to work by her doctors, the school made moves to dismiss her because of anxieties about her condition, narcolepsy. The teacher threatened to sue, and then the school fired her for making the threat, which they said was a violation of their beliefs about conflict between Christians.

No secular school would have been allowed to fire that teacher. No religious school would either -- unless it had established that teachers were more than teachers, they were ministers, and so subject to all the capriciousness of those they served.

In the majority opinion, Chief Justice John Roberts wrote, "The members of a religious group put their faith in the hands of their ministers. Requiring a church to accept or retain an unwanted minister, or punishing a church for failing to do so, intrudes upon more than a mere employment decision."

In Family, Life, Faith and Freedom v. Lynda Serrano, the Calvary Chapel school lawyers cited Hosanna-Tabor, about the rights of religious groups to not be held to the standards of employment law. The teachers at their school are also considered ministers, and were also fired for threatening legal action against a church school employer. The school's lawyers attempted to argue that the ministerial exemption from employment law should also mean protection from possible discrimination litigation in state court.

According to Judge Gee, the federal courts don't have the jurisdiction necessary to block anticipated state court lawsuits that might violate churches' religious right of hiring and firing ministers. Whether or not the appeal will go anywhere remains to be seen.

It seems likely, though, that the courts will be facing more cases like this in the future. They'll continue to hear cases where there are conflicting claims about the rights of teachers and church schools, where they have to determine the scope of this constitutional protection of a "ministerial exception," and figure out the consequences and the logical, legal extensions of last year's landmark decision for religious liberty.

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Churches and taxes

A Congressional committee working on ways to reform and simplify the US tax code has considered recommendations to change the tax exempt status of churches.

The working group hears and summarizes recommendations from interested parties and passes that information on to the elected representatives on the House Ways and Means Committee. There's no straight line from the working group's report to eventual legislation. It doesn't make recommendations, but considers them, digests them, and passes them on. In the more than 500-page report, however, this is the only reform considered that is specific to churches' tax status.

The committee heard three recommendations for change:

• Require churches to apply for tax-exempt status, rather than receiving it automatically
• Require churches to file an annual tax return, even though no taxes are being paid, as do other non-profits
• Ease restrictions on IRS, allowing for more tax inquiries and audits of church finances

The recommendations seem to come from the Secular Coalition for America.

In a letter to the House Ways and Means Committee, the group writes, 

A fair tax system should require accountability from all organizations that are entrusted with the privileges of tax exemption. However, the limitations imposed on the IRS by these three provisions ensure that churches are virtually insulated from public or government oversight. Reporting requirements for tax-exempt organizations are in place to ensure the benefits received are serving the benevolent purpose for which they were intended. Charitable contributions by individuals, foundations, bequests, and corporations reached $298.42 billion in 2011, with religious organizations receiving the largest share -- 32 percent -- of total estimated contributions. Holding religious organizations to the same filing standards as other charitable and educational institutions ensures that the almost $100 billion being donated to these organizations is actually going to help those who need it.

The group is not recommending churches lose their tax-exempt status, but that they be held to the same standards as other non-profits, such as para-church organizations.

The Secular Coalition argues that some specific religious groups, notably the Catholic Church and the Church of Jesus Christ of Latter-day Saints, have used their money in questionable ways and cannot be held accountable because the government has provided them with a "veil of secrecy." The Secular Coalition also objects to the way charitable donations are being used for political purposes in violation of the Johnson Amendment, sometimes flagrantly, as in the Pulpit Freedom movement

The Secular Coalition estimates that "Enabling the IRS to revoke the tax-exempt status of violating religious organizations by requiring application, reporting, and removing [Church Audit Procedures Act] from the tax code could generate up to $16.75 billion per year, almost enough to cover the entire 2012 budget for NASA.

The politics of such a reform make it pretty unlikely. Changing the tax code in these ways would probably be cast as an attack on churches, and it's pretty impolitic to be seen as attacking churches.

There is, though, at least one interesting possibility for a compromise apparent in the clash between the reforms suggested by the Secular Coalition and those sought by those Pulpit Freedom movement. Perhaps the restriction on political activity could be withdrawn in exchange for new requirements that churches apply for tax exempt status, report their taxes and submit to audits in the same way as other non-profits. 

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The hospitality of saints

St. Remigius -- "apostle to the Franks" and the Archbishop of Reims (437-533) -- in a chapel on top of Wurmlingen Berg. The chapel is named after Remigius, though what connection he has to the hilltop church in Southern Germany I do not know.

St. Remigius' day, coincidentally, is tomorrow.

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Horseshoes on the chapel door

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A perch at the end of the day

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