I have written before how the tax exemption given to churches creates opportunities for all manner of abuse. The practice of granting churches tax exemptions is long-standing, dating to before American independence but its constitutionality was not tested until 1970 when the US Supreme Court ruled that while it would not be permissible for the state to actually give churches money, granting tax exemptions was a passive form of state support that passed muster because the state had an interest in promoting organizations that improved the general welfare and the Establishment Clause discouraged entangling religion with the state, and having the state tax churches would lead to more entanglement than exempting them from taxation. [Read more…]
