Federal judge: Clergy tax-free housing allowance is unconstitutional

[hrmjustin]

Sarah Pulliam Bailey

(RNS) A federal judge has ruled that an Internal Revenue Service exemption that allows clergy to shield a portion of their salary from federal income taxes is unconstitutional.

The clergy housing exemption applies to an estimated 44,000 ministers, priests, rabbis, imams and others. If the ruling stands, some clergy members could experience an estimated 5 to 10 percent cut in take-home pay.

The suit was filed by the Wisconsin-based Freedom from Religion Foundation on grounds that the housing allowance violates the separation of church and state and the constitutional guarantee of equal protection. The group’s founders have said that if tax-exempt religious groups are allowed a housing subsidy, other tax-exempt groups, such as FFRF, should get one, too.

U.S. District Court Judge Barbara Crabb on Friday (Nov. 22) ruled in their favor, saying the exemption “provides a benefit to religious persons and no one else, even though doing so is not necessary to alleviate a special burden on religious exercise.”

http://www.religionnews.com/2013/11/24/a-federal-judges-significant-decision-clergy-tax-free-housing-is-not-constitutional/

[MADem]

1. I wonder if they'll try to do this to military personnel, too...?

Housing allowance is tax free; then again, they're orders, not invitations--military people can't refuse the assignments they are given, and many have a permanent home they're paying for. All have a "home of record," and perhaps that's how they get around having to be taxed for being housed in a place where they are working because they've been commanded to be in that place at that time...?