Tag: Tax Treatment for Churches

Right-Wing Lobbying Group Designated a Church by IRS

The Daily Escape:

Sunrise, high tide, Sea Street beach, East Dennis, MA – July 2022 photo by Bob Amaral Photography

The fallout from the Trump years continues. On Monday, ProPublica reported that the IRS had decided that the Family Research Council (FRC), a Right-Wing political lobbying group, qualifies as a church for tax purposes:

“The Family Research Council’s multimillion-dollar headquarters sit on G Street in Washington, DC, just steps from the US Capitol and the White House, a spot ideally situated for its work as a right-wing policy think tank and political pressure group.”

The FRC is now a church, thanks to the IRS and its Commissioner, Charles Rettig. You can be forgiven for not remembering that Trump appointed Rettig to be Commissioner of the IRS in 2018. He got the job by writing a 2016 op-ed saying Trump didn’t have to release his tax returns, despite every major presidential candidate having done so since Nixon.

ProPublica noted that the FRC says on its website that it is a:

“…nonprofit research and educational organization dedicated to articulating and advancing a family-centered philosophy of public life. In addition to providing policy research and analysis….[the] FRC seeks to inform the news media, the academic community, business leaders, and the general public about family issues that affect the nation from a biblical worldview.”

Now that the IRS has blessed FRC as a church, it is no longer required to file a public tax return, (known as a Form 990), which reveals key salaries, the names of board members and related organizations, large payments and/or grants by the organization.

And unlike with charities, IRS investigators can’t initiate an audit on a church unless a high-level Treasury Department official has approved the investigation.

Right Wing Watch, an organization that monitors the activities and rhetoric of right-wing activists and organizations reported on the ties between FRC and Trump’s Jan. 6 effort to overturn the presidential election:

“The Family Research Council…was deeply involved in…Trump’s efforts to overturn the results of the 2020 election—a fact made all the more apparent by revelations during the June 23 public hearing of the House select committee investigating the conspiracy that led to the Jan. 6, 2021, insurrection at the US Capitol.”

You probably remember the head of the FRC, Tony Perkins (not the deceased actor) by some of his grandstanding in the culture wars:

  • In 2005, Perkins was against disconnecting life support for Terri Schiavo, a woman who had been in a “persistent vegetative state” for a number of years.
  • In 2008, Perkins called the passage of California Proposition 8 (which prohibited same sex marriage in the state) “more important than the presidential election”.
  • In 2018, Perkins said, regarding Trump’s adulterous past, he should be given a “Mulligan“, because Trump was “providing the leadership we need at this time…”

In 2010, The Southern Poverty Law Center (SPLC) designated the FRC as a hate group. From the SPLC:

“Part of FRC’s strategy is to pound home the false claim that LGBTQ people are more likely to sexually abuse children than heterosexual people. The American Psychological Association, among others, however, has concluded that “homosexual men are not more likely to sexually abuse children than heterosexual men are.”

Designating the FRC as a church for tax purposes is part of a disturbing trend. The WaPo reported in 2020 about the growing list of religious groups seeking church status from the IRS.

The potential cost of becoming a church is that the organization can no longer conduct political operations on behalf of politicians or lobby on legislation. In practice, that is simple to get around. The FRC now has its church arm alongside a separate lobbying arm called Family Research Council Action.

The arms separate their messaging on two websites, with the FRC hosting issues-based content supporting its Christian worldview while the Family Research Council Action explicitly endorses candidates. Both arms are registered at the same address and both share all five of the part-time employees the FRC lists on its tax form, including Tony Perkins.

These “churches” sure have figured out how to run a scam on the US government.

It’s past time for the IRS to end this charade and tax churches. Biden should fire IRS Commissioner Rettig, who was also the guy in charge when the IRS politically targeted Trump “enemies” James Comey and Andrew McCabe for invasive tax audits.

These people and their “churches” are simply Republicans with a talent for abusing the bible and raising obscene amounts of money. Thomas Jefferson said it best:

“In every country and in every age, the priest has been hostile to liberty. He is always in alliance with the despot, abetting his abuses in return for protection to his own.”

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Roberts Returns to the Dark Side

The Daily Escape:

Lake Blanche, Upper Cottonwood Canyon, UT – 2020 Galaxy S10 photo by criked

On Tuesday, the Supremes issued another opinion. This one narrows the First Amendment’s separation of church and state. The case, Espinoza v. Montana Department of Revenue, was a 5-4 decision, with the five conservative justices in the majority, and the four liberal justices dissenting.

From Slate: (emphasis by Wrongo)

“The Montana Constitution contains a “no-aid” provision that bars the state from providing public funds to religious institutions, as do 37 other state constitutions. To work around this rule, the Legislature granted tax credits to residents who donate money to Big Sky Scholarships, which pays for students to attend private schools, both secular and sectarian. (Montana’s demographics ensure that the only sectarian schools that participate are Christian.) In other words, residents get money from the state when they help children obtain a private education, including religious indoctrination. In 2018, the Montana Supreme Court found that this program violated the state constitution’s no-aid clause. But instead of excluding sectarian schools, the court struck down the whole scheme for all private education.”

Chief Justice John Roberts’s opinion revived Montana’s tax credit scheme when he announced a new Constitutional principle: Once a state funds private education, “it cannot disqualify some private schools solely because they are religious.”

Twenty-nine states, the District of Columbia, and Puerto Rico all provide tax credits or vouchers to families that send their children to private schools. Under Espinoza, they must now extend these programs to private religious schools. More from Slate:

“This decision flips the First Amendment on its head. The amendment’s free exercise clause protects religious liberty, while its establishment clause commands that the government make no law ‘respecting an establishment of religion’.”

In essence, Roberts is now saying that the Establishment Clause supersedes the Free Exercise Clause.

Some background: In Zelman v. Simmons-Harris, the Supreme Court ruled that, under the Establishment Clause, states were allowed to fund private schools through vouchers or tax credits. Now the court has declared that, under the Free Exercise clause, most states are compelled to fund private religious schools.

Over the past 18 years, the Court’s conservative majority has revolutionized church-state law.

How did the court do this? The barrier between church and state took a hit when five justices permitted state financing of sectarian schools in Zelman. It nearly collapsed when the court expanded religious institutions’ access to taxpayer money in 2017’s Trinity Lutheran v. Comer, which held that states cannot deny public benefits to religious institutions simply because they are religious.

The court claimed that their new rule was actually hidden in the meaning of the First Amendment’s Free Exercise clause—even though, as Justice Sotomayor pointed out at the time, separating church and state does not limit anyone’s ability to exercise their religion.

More from Slate. Roberts, from the Espinoza opinion: (italics are in the quote)

“A state violates free exercise…when it “discriminate[s] against schools” based on “the religious character of the school.” The government, Roberts explained, has no compelling interest in preserving the separation of church and state beyond what the First Amendment requires. Nor does the government have any interest in protecting taxpayers’ right not to fund religious exercise that infringes upon their own beliefs.”

Said the Chief Justice:

“We do not see how the no-aid provision promotes religious freedom…”

In theory, states could abolish public funding of private schools entirely to avoid funding religious schools, but that’s what the Montana Supreme Court did. And Roberts just condemned that decision as “discrimination against religious schools”, because Montana had originally funded all private schools.

Roberts may be a master at minimizing losses (hits to the credibility or reputation of SCOTUS), while maximizing returns for his masters (conservative victories). In most of the cases where he has sided with the liberals, his opinion has basically boiled down to “lie better the next time.”

That was true in the abortion and DACA cases this term, and in the Census case last term.

So, based on this decision, religious entities (of the right sort) are not only eligible for government funding, they are entitled to it. That, and more equipment for the military.

This is what the America conservatives want. What could go wrong?

The state requires children to go to school. It also provides a school system for those children in order to meet that requirement. If you choose to send yours to a private, accredited/licensed school instead, that cost should be borne by you, not by the taxpayers.

Public funding for religious schools, along with tax-free status for churches, gives too much political power to religions.

That’s exactly why separation of Church and State is so crucial.

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Saturday Soother – November 4, 2017

The Daily Escape:

Grand Tetons early morning – 2011 photo by Wrongo

Two short thoughts for your Saturday. First, hidden in the language of the GOP’s Tax Bill  is a something that would change the Johnson Amendment, a provision in the tax code that prohibits churches, faith communities, and other non-profits from outright endorsing political candidates:


The provision is not a complete repeal of the Johnson Amendment. As written, it would only free up religious communities—not all non-profits—to endorse candidates and appears to prohibit churches from going out of their way to campaign for a candidate outside of their normal religious activities.

The GOP wants to erode the separation of church and state. Let’s see who, if anyone, in Congress is willing to fight for the Constitution.

Second, the Democrats had a grenade go off inside the DNC when an excerpt from Donna Brazile’s new book was published by Politico. She claims that the Clinton administration assumed control over the Democratic National Committee (DNC) in exchange for keeping it solvent, then funneled most of the funds raised into her campaign, leaving the states with very little to support down-ballot races.

The states kept less than half of 1 percent of the $82 million they had garnered from the Hillary fund-raisers the campaign was holding to support state-level candidates. That’s about $4.1 million.

When Howard Dean was chair of the DNC he instituted a 50-state policy, saying the DNC would maintain full time workers in each state, to contest seats up and down the ballot from the county, to state legislature to house and senate races.

When Obama won, Dean was out, and the 50-state policy was dismantled. After that, the DNC was reorganized to serve only national level elections. And Obama For America took its place as the funds-raising vehicle for the presidential re-election. And Hillary did much the same with the Hillary Victory Fund, but she went further, as Brazile reveals: The DNC would covertly back Hillary in the primaries.

And now, through these efforts, the Democrats have lost the White House, the Senate and the House, in addition to most state governments.

It’s hard to decide what’s worse, that the party is run by incompetents, or that it is just hopelessly corrupt.

Time for a hostile takeover of the Democratic Party.

On to the weekend. You obviously need to go to a happy place that doesn’t include continual assaults by our national media. So brew up a cup of London-based Union Hand-Roasted Coffee’s El Topacio Microlot, El Salvador, available online for £8/200g.

Now kick back someplace you can see the natural world outside, and listen to Peter Mulvey playing his instrumental, “Black Rabbit”. Mulvey is known for his guitar chops and songwriting. He got started by playing in the Boston metro. This short acoustic gem is executed with ease, and pure musicality:

Those who read the Wrongologist in email can view the video here.

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Trump’s “Religious Freedom” Executive Order

The Daily Escape:

Cinco de Mayo parade in Puebla Mexico, where Mexico defeated France in 1862

Happy Cinco de Mayo! At the Mansion of Wrong, its ahi ceviche with mango, jalapeno, cilantro, ancho chili, lime juice and tequila in toasted won-ton wrappers. And Don Julio Anejo to wash it down. Not bad.

But among yesterday’s depressing news regarding the House passage of the Obamacare Repeal and (not) Replace, was the Orange Overlord signing yet another Executive Order (EO) touted by the Trump administration to protect “Religious Liberty”:

 

The EO directs the IRS not to enforce the Johnson Amendment. The Johnson Amendment is a part of the tax code that forbids 501(c)(3) organizations (including churches) from participating “directly or indirectly” in political campaigns.

Churches have historically been free to discuss and promote any issue or idea. So, they can address things like civil rights, reproductive rights, police violence, or the sanctity of law and order. They can also urge people to get out and vote on Election Day.

In other words, they can push and prod about all kinds of civic issues and engagement, in order to get their members to cast their votes.

The red line for the Johnson Amendment is actually endorsing a candidate. Churches can give a sermon about the evils of abortion, and let the attendees connect the dots to a candidate, but it’s a violation of the Johnson Amendment for the church to connect the dots directly, and tell the members to vote for a specific candidate or party.

Trump’s EO removes that red line. It will let churches give full endorsements so they can tell their congregants that God wants them to vote for Candidate X, and if they fail to do so, He will be angry and the baby Jesus will cry.

Trump’s EO leaves the decision whether to enforce the Johnson Amendment in the hands of the IRS. That means the IRS could pick and choose which institutions to penalize, and it might be your church, and not your neighbor’s.

In February, Trump promised to “destroy” the Johnson Amendment. But, presidents can’t “destroy” laws with EOs; that takes an act of Congress. Republicans may try repealing the Johnson amendment as part of their tax reform package.

Nancy LeTourneau thinks that:

The executive order the president will sign today isn’t really so much about “religious freedom,” as it is being framed by Trump and the religious right. This is actually designed to further erode one of the remaining restrictions on campaign finance.

LeTourneau points to the “indirect” efforts by Franklin Graham to elect Trump last fall, and offers him as an example: (brackets by the Wrongologist)

To the extent that the IRS ignores this statute, Graham will be able to accept tax-free donations to Samaritan’s Purse [Franklin Graham is president] (or another non-profit he might set up) that will go towards endorsing and advocating for the political candidates of their choice. That will likely make Franklin Graham a major player on par with the Super PACs in American politics.

LeTourneau thinks the EO has little to do with “Religious Freedom”, but instead opens a path for professional evangelists like Franklin Graham to become king-makers in our politics.

This turns “no taxation without representation” into “representation without taxation”, a Republican wet dream that could undermine whatever remains of our campaign finance regulations. Where is the lack of religious freedom here? Churches don’t have to apply for tax-exempt status, and they could then say (or do) anything they want.

They just would have to pay taxes like everyone else.

OK, here’s some music for Cinco: Here is “Oye Como Va” by Santana. It was written by Tito Puente in 1963, and popularized by Santana in 1970 on his album Abraxas:

Those who read the Wrongologist in email can view the video here.

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