Source: Churches and Taxes – ProCon.org.

US churches received an official federal income tax exemption in 1894, and they have been unofficially tax-exempt since the country’s founding. All 50 US states and the District of Columbia exempt churches from paying property tax. Donations to churches are tax-deductible. The debate continues over whether or not these tax benefits should be retained.
Proponents argue that a tax exemption keeps the government out of church finances and thus upholds the separation of church and state. They say that churches deserve a tax break because they provide crucial social services, and that church tax exemptions have been in place for over 200 years without turning America into a theocracy.
Opponents argue that giving churches special tax exemptions violates the separation of church and state, and that tax exemptions are a privilege, not a right guaranteed by the US Constitution. They say that in tough economic times the government cannot afford what amounts to a subsidy worth billions of dollars every year.
Continue reading “Separation of Church and State — Taxes”
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