Nice work if you can get it

Submitted by Prometheus 6 on October 11, 2006 - 3:51am.
on

The article is worth more than a snarky headline, though.

Until 1968, clergy members were exempt from Social Security unless they joined voluntarily. Since then, they have been automatically covered — but, unlike other citizens, they are allowed to drop out as conscientious objectors if they assert, by a certain point early in their ministry, that they have a religious opposition to receiving public welfare benefits.

“Few people, outside of the Amish, could plausibly say that,” said Mr. Hammar, an accountant who also has a law degree from Harvard and attended its divinity school.

Yet his research shows that 3 of every 10 ministers in America have opted out of Social Security. “The only conclusion is that the conscience-based objection is usually really a financial decision,” he said.

In God’s Name
Religion-Based Tax Breaks: Housing to Paychecks to Books
By DIANA B. HENRIQUES

For tens of millions of Americans, the Rev. Rick Warren is best known for his blockbuster spiritual guide, “The Purpose Driven Life,” which has sold more than 25 million copies; his success as the founder of the 22,000-member Saddleback Church in Lake Forest, Calif.; and his efforts on behalf of some of the world’s neediest people.

But for tens of thousands of ministers — and their financial advisers — Pastor Warren will also be remembered as their champion in a fight over the most valuable tax break available to ordained clergy members of all faiths: an exemption from federal taxes for most of the money they spend on housing, which typically represents roughly a third of their compensation. Pastor Warren argued that the tax break is essential to poorly paid clergy members who serve society.

The tax break is not available to the staff at secular nonprofit organizations whose scale and charitable aims compare to those of religious ministries like Pastor Warren’s church, or to poorly paid inner-city teachers and day care workers who also serve their communities.

The housing deduction is one of several tax breaks that leave extra money in the pockets of clergy members and their religious employers. Ministers of every faith are also exempt from income tax withholding and can opt out of Social Security. And every state but one exempts religious employers from paying state unemployment taxes — reducing the employers’ payroll expenses but also leaving their workers without unemployment benefits if they are laid off.

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