Sorry for the time delay in blogging. It has been crazy busy around here (all good). I love to put thoughts on “cyber-paper” and I miss it when I can’t do it, but I am feeling that sense of calm even now as I write. Don’t forget our big weekend with Pastors Rod and Mary Aguillard (Sr. Apostolic Overseers of Legacy Church) who will be with us on Sunday. Pastor Rod always has a humorous way of sowing truth in us and it is always a delight to have them both minister to us. It is really important to me that we are all here and put our best foot forward, so remember to set the alarm clock and get ready for an over-the-top Sunday at Legacy!
Now to a more fascinating topic…
I was reading in the local newspaper an article about the validity of certain tax-breaks the clergy get under current U.S. tax law. It’s called, “The Housing Allowance”. To understand how and why it works you need a little history on the evolution of this tax break. First, keep in mind that income tax is a relatively new thing. There were attempts at personal income tax through the mid-1800’s, mostly to fund the Civil War, but were later repealed. The beginning of Income Tax was really in 1913 with the ratification of the 16th amendment that gave the Federal government the ability to do this. From that time to this, we all know the feeling of that dreaded April 15th deadline where we pay our dues for being an American citizen. Now let me say that I, like everyone else, am not a fan of taxes. Who really enjoys paying extra to the government, whether it be sales, state, or federal tax? Having said that I also realize that taxes (that is, reasonable) do pay for certain services and protections that I can and do benefit (i.e. police, military, fire department, roads, etc…). Like most Americans, I have a personal opinion on what I think the government should and should not be involved in, but I am not one of these people who are absolutely “anti-tax”.
Now…back to “housing allowance”. For centuries it was customary for a church to provide a “parsonage” for its minister and family. Through the years, it was more economically feasible for a church to provide the housing and then they could pay the pastor less because his housing and utilities were cared for. This also meant that the minister’s taxable income was less and therefore the pastor would pay less in taxes (so far, makes sense). Nobody really thought that the ministers weren’t paying their fair share because what literally came through their hands was indeed taxed. Beyond this, most people in the 20th century had an overall perception that pastors, generally, were underpaid and despite their minimal income were a vital “anchor” in people’s lives through counseling, moral instruction, and benevolence activity. In other words, they helped keep the state and local governments from being inundated and buried with all the “needs” that could have come for state assistance.
All of this started to change at the end of the 20th century and now well into the 21st century. A major reason was that ministers started to desire the opportunity to accrue equity in a house that was theirs. They too, would retire someday and wanted the ability to provide for their latter years in both finance and housing. After all, when they stopped pastoring a church, where would they live? As more and more ministers desired this, churches began selling parsonages and providing more salary in order to compensate the pastors appropriately. As this transitioned, the question arose, “Can we still not get a tax-break on the housing portion of our salary since this was never really taxed in the first place?” And so for years, ministers could designate a portion of their salary as “housing allowance” and it would not be taxed as income. I admit, it was a great tax break. However, in an era of ballooning deficits and reduced income, the government is looking for income anywhere it can find it. It also is front and center because there is a perception from the most visible media pastors that ministers must be doing very well these days. People forget that there are over 350,000 pastors of which maybe a hundred are well-known. Most pastors are bi-vocational and I can assure you are clipping coupons like the rest of society. Many are considering revoking the “housing allowance” because:
1. Ministers are not paying their “fair-share” and other citizens (including atheists) are underwriting them with their tax burden.
2. It is a violation of church and state.
The issue is before the Supreme Court as I write. I will tell you that my sense is that this tax break will eventually get revoked. That is the way we seem to be headed as a nation. My tax break was nice, but if I lose it I will not personally be economically devastated (unlike some pastors at very menial and poor situations). The problem is once again that our culture has drifted from a Christian (Biblical) Worldview on even things like tax issues. I bet you didn’t know that the Bible teaches that those who are servants of the Lord (ministers) are not to be taxed (SEE Ezra 7:24). Did you also know that God set a limit on what a nation could tax its people without then being considered tyrannical? Do you know that a “Capital Gain” tax is directly taught against in the Scripture (Matthew 25:14-30; Luke 19:12-27)? I bet you didn’t realize that the current tax structure of America which is called “a progressive tax” is in direct violation of the Scripture (Exodus 30:11-15). And let us not forget the “Inheritance tax” which can take up to 55% of an estate, leaving 45% to the children who, if they pass it on to their children, lose another 55% of the estate which means only 27% is left to the grandchildren violates the following Scriptures: Proverbs 13:22, Ezekiel 46:18, I Chronicles 28:8, and Ezra 9:12.
My point is NOT for you to rebel against your taxes and not do what is currently required. It is to underscore once again that we have drifted from the standard of God’s Word in this nation which was founded on Scriptural precepts. I believe in COMPREHENSIVE CHRISTIANTY! I believe that the Bible has answers for people and nations. It is time again we connect the dots and see where this country of ours is headed. I will pay my extra taxes and the government will get a couple hundred extra dollars, but it is losing something far more important…the favor and blessing of God. 2010 is another election year. I encourage you even now to begin to pray that God will raise up candidates of integrity and Godly wisdom that will have the courage to re-dig these wells in our culture. Time is running short.
In HIM, we live and move and have our being!
Pastor