Taxing churches is an extremely bad idea.
1. Taxation is a form of government control. But the Constitution recognizes the need for religion to remain free of government control (that's what separation of Church and State means). Churches are SUPPOSED to be vocal and even critical of government, but since they are highly dependent on donations, they must remain exempt from tax.
2. The Church, especially in the Philippines, is essential for social, medical, and charitable services. The Catholic Church contributes more to the poor than any private entity in the country. In fact, without it, social services would collapse; the health care system would collapse. The government is a dismal failure when it comes to social services and that is why the Church has to fill in. So why take money from an institution which spends it in a far better manner and then give it to a government which is one of the most corrupt in Asia? That does not make fiscal sense.
This idea of taxing churches is just a way of trying to silence legitimate criticism of a criminal and corrupt government. Taxing churches is detrimental to freedom and democracy.
Congressman Golez got it right when he said that syuch a move would be against the “principle of separation of church and state enshrined in the Constitution.”
Speaker mulls scrapping of church’s tax privilege
Golez sees notion as ‘veiled threat’
“It is a veiled threat on all religious organizations, especially considering the vagueness of what constitutes ‘politics,’ the meaning and interpretation of which can be subject to abuse and capriciousness,” Golez said in a text message.
“Will endorsing a candidate be considered engaging in politics? What about commenting on Charter change? What about allowing a priest to run for office?” he asked.
Golez pointed out that the principle of separation of church and state, as explained by John Locke and, later, by Thomas Jefferson and James Madison, is primarily to prevent the state from encroaching in church affairs, not the other way around.
“Taxation or the intent to tax is like pointing a gun at the organization to be taxed,” he said. “It must be remembered that the threat to unleash the BIR [Bureau of Internal Revenue] on any entity, business or person is a very frightening threat and can exert grave pressure.”
“That is also the reason why the government cannot appropriate funds to support a religious organization because a carrot, just like a stick, can unduly influence that religious group,” he added.
As for Church-owned businesses (wholly or partially), that is a gray area. If the business uses part or all of its income to support the Church or its work, then at least that part of its income cannot be taxed. The part of the business's income that is used for profit of the business can probably be taxed. It is a simple matter of accounting. Since donations by other businesses are already tax deductible, this is not a problem.
By the way, some people have the MISTAKEN notion that to engage in political activity will subject an entity to tax. That is false. In the US, where this error has taken root, this can be traced to a very interesting little bit of tax law. In the US, churches and religious institutions are already exempt from tax. They can, however, get an official (though unnecessary) exemption as "501c3 tax-exempt religious organizations" under the Internal Revenue Service (IRS), But by doing so, they must also refrain from political activity against the government. If they do engage in such activity, the IRS can pull the plug and they lose that IRS exemption and are taxable. Some religious institutions have made the mistake of applying for the IRS exemption just to get an official exemption. This is unnecessary but not everyone knows this.
IRS Publication 557:
Some organizations are not required to file Form 1023. These include:
Churches, interchurch organizations of local units of a church, conventions or associations of churches, or integrated auxiliaries of a church, such as a men’s or women’s organization, religious school, mission society, or youth group. These organizations are exempt automatically if they meet the requirements of section 501(c)(3).
According to IRS Code § 508(c)(1)(A):
Special rules with respect to section 501(c)(3) organizations.
(a) New organizations must notify secretary that they are applying for recognition of section 501(c)(3) status.
. . .
(c) Exceptions.
(1) Mandatory exceptions. Subsections (a) and (b) shall
not apply to --
(A)churches, their integrated auxiliaries, and conventions or associations of churches.
IRS Publication 526:
Organizations That Qualify To Receive Deductible Contributions
You can deduct your contributions only if you make them to a qualified organization. To become a qualified organization, most organizations other than churches and governments, as described below, must apply to the IRS.
So it NOT true that in the US religious institutions must stay out of politics to remain tax exempt. This only applies to those groups that have made the mistake of becoming "501c3 tax-exempt religious organizations".
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No to Reproductive Health Bill (HB5043) Petition
No to Reproductive Health Bill (HB5043) Petition
Originally Posted by Helper_finder
if you tax them.when you hear mass, you have to pay for you seat. mahal na pamesa, mahal na pa bunyag, when you go to confession, the you will pay the church depending the weight of your sins. and holy communion is Pper host. kung 10 mo sa family.you will pay P?? x 10 =?. hahahahaha. joke
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