From the Wisconsin State Journal:
A federal judge has found unconstitutional a law that lets clergy members avoid paying income taxes on compensation that is designated part of a housing allowance.
The decision Friday by U.S. District Judge Barbara Crabb could have far-reaching financial ramifications for pastors, who currently can use the untaxed income to pay rental housing costs or the costs of home ownership, including mortgage payments and property taxes.
“It’s a really big deal,” said Annie Laurie Gaylor, co-president of the Madison-based Freedom From Religion Foundation, which filed the lawsuit. “A church currently could pay a minister $50,000 but designate $20,000 of it a housing allowance so that only $30,000 would be taxed as salary.”
Crabb acknowledged in her decision that the exemption is a boon to ministers, referencing a 2002 statement by then-U.S. Rep. Jim Ramstad of Minnesota that the tax exemption would save clergy members $2.3 billion in taxes from 2002-2007. But she said the magnitude of the benefit only underscores what’s wrong with the law.
Read more: http://host.madison.com/news/local/judge-strikes-down-law-that-gives-clergy-members-tax-free/article_b8b1c816-bd2b-5f46-9d5a-68c5ad0ed39d.html#ixzz2lYM37V00
First, you have to realize that Crabb is a very liberal judge in Wisconsin who has been overturned in her rulings many times.
Then you have a bunch of angry atheists who have nothing better to do except than harassing Christians.
But most pastors and ministers don't make $50,000 and have $30,000 declared as housing and apparently, nothing was put into evidence this was happening.
But the fact is that most ministers are underpaid, this is a long held American tradition with religion leaders and it happens frequently with college presidents along with other occupations where housing may be an issue.
This ruling will be overturned.
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