religious tax exemptions

Atheists Challenge the Tax Exemption for Religious Groups

RNS photo by Tyrone Turner

Thousands of atheists and unbelievers gathered Saturday on the National Mall for the Reason Rally. RNS photo by Tyrone Turner

How much money does the U.S. government forgo by not taxing religious institutions? According to a University of Tampa professor, perhaps as much as $71 billion a year.

Ryan Cragun, an assistant professor of sociology, and two students examined U.S. tax laws to estimate the total cost of tax exemptions for religious institutions — on property, donations, business enterprises, capital gains and “parsonage allowances,” which permit clergy to deduct housing costs.

Their article appears in the current issue of Free Inquiry magazine, published by the Council for Secular Humanism, an organization of nontheists. U.S. tax law grants religious groups and other nonprofits the exemptions because of their charitable nature.

And while the authors do not claim theirs is a comprehensive or unbiased appraisal, their findings have raised eyebrows in the nontheist community, which has long sought to eliminate the tax exemptions on the grounds that they unfairly favor religious institutions.

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