Sterling Clendenning
Mrs. Haymore
Language Arts
04 March 2022
Argument Essay: Churches
Should Pay Taxes
By: Sterling Clendenning
In the United States, private churches own between 20% and 25% of all viable real
estate. Churches from every denomination in the US have made this possible through the
Establishment Clause of the First Amendment of the US Constitution freeing them of taxes. On
average a ministry in the US owns between 150,000 and 25,00,000 million dollars in real estate,
all tax-free according to The Street, a financial news media source. Although many disagree
churches should have to pay their fair share of taxes.
Many “mega” churches are multiple millions of dollars operations. The Hartford Institute
for Religion Research defines a megachurch as any Protestant Christian church having 2,000 or
more people in average weekend attendance. These large congregations sprouted up in the mid
19th century as suburbia flourished and the middle class was stronger than ever before. Icons like
Joel Osteen, Joyce Meyer and Jentezen Franklin were born. However, with the rise of these
biblical stars came great fraud.
Kenneth Copeland the Mega-Church Pastor and television evangelical has not been far
off from beating the system. The megachurch leader boasts a 43 million dollar palace in Newark
Texas along with many other lavish mansions including ones in Aspen Colorado and Potomac
Maryland two of the country's most exclusive zip codes. Becoming even more flamboyant when
travel appears as he owns a fleet of multi-million dollar jets and recently acquired a new one as
of September 2020. In 2020, Copeland took out a four million dollar paycheck protection
program loan from the federal government. Despite having a no-taxation status all organizations
that identify as ministries could receive PPP or pay-check protection loans. These loans were
meant to help employers still pay employees even after having to close doors. In late 2020
Kenneth’s church’s parent company Kenneth Copeland Ministries took out a four million dollar
PPP loan. Soon after Kenneth purchased an additional four million dollar private Boeing jet from
media personality Tyler Perry. This was a completely tax-exempt transaction.
Justifying this purchase Copeland started being in a commercial fight was “like being
trapped on a tube with a bunch of demons.” Inside edition’s Lisa Guerrero caught up with
Kenneth where she asked if he believed humans inherently were demons because of his last
comment. He became very violent and combative stating “No don’t you ever say I said that.”
Shortly after stating that Copeland paid back the four million dollar loan showing he never really
needed it. It is also important to note that his ministry collects 2.5 million in monthly viewer
donations. All according to ABC News, the network owner of Inside Edition.
Some people say that churches having to pay taxes violates church and state; however,
Churches receive special treatment from the IRS even beyond tax-exempt status. According to
Britannica, while secular charities are compelled to report their income and financial structure to
the IRS using Form 990 (Return of Organization Exempt From Income Tax), churches are
granted automatic exemption from federal income tax without having to file a tax return.
Meaning their income, nor property is ever evaluated. Leaving the door open for potential fraud.
In addition, the IRS handbook for churches and religious organizations uses the term ``church'' in
its generic sense as a “place of worship” Since many people pray in their homes couldn't they
claim their house was a place of worship? With this vague wording, why do churches not have to
pay property taxes and individuals do?
Others would also argue that churches get this presumed tax break because of the positive
impact they make on the communities they reside in. However, no such provision has been added
or stated in the constitution and accountability for checking on what each church is doing for
their community would be an enormous task. Leaving tax-exempt status a privilege, not a right.
Furthermore tax-exempt status forces citizens to support a religious doctrine even if they
don't believe in it. With millions of dollars in tax-free real estate, someone has to foot the bill to
make up for the extra taxes. Those extra dollars have to come from the American people. As
Mark Twain argued: “no church property is taxed and so the infidel and the atheist and the man
without religion are taxed to make up the deficit in the public income thus caused.” Therefore
shows that all individuals have to make up for one group that thinks there above the system.
Another crooked Mega-Church Pastor includes trauma to enlightenment Joyce Meyer. Other
than her reported false teachings of spreading a biblical narrative that was not true and making
up bible verses she was also one of 20 religious organizations investigated for abusing
tax-exempt status. In November 2003, the St. Louis Post-Dispatch published a four-part special
report detailing Meyer's "$10 million corporate jet, her husband's $107,000 silver-gray Mercedes
sedan, her $2 million home and houses worth another $2 million for her four children," a $20
million headquarters, furnished with $5.7 million worth of furniture, artwork, glassware, and the
latest equipment and machinery," including a "$30,000 malachite round table, a $23,000
marble-topped antique commode, a $14,000 custom office bookcase, a $7,000 Stations of the
Cross in Dresden porcelain, a $6,300 eagle sculpture on a pedestal, another eagle made of silver
bought for $5,000, and numerous paintings purchased for $1,000 to $4,000 each," among many
other expensive items all paid for by the ministry. The articles prompted Wall Watchers a
Christian nonprofit watchdog group, to call on the Internal Revenue Service (IRS) to investigate
Meyer and her family.
Along with other mega-church leaders, Meyer was investigated, however not
indicted. The major effect of this scandal was damage to Meyer’s public image. In a puny
attempt to save face Joyce agreed to take a pay cut from her usual 95 million dollar TV contract
salary. Going from 95 million to 90 million.
Many wealthy individuals branch out into other areas and rely on their religious LLC to
free them of uncle sam. No one else is a bigger example of this than Mary Cosby of “The Real
Housewives of Salt Lake City.” For her two seasons on the show, Mary was profiled as a very
wealthy Salt Lake City socialite and “first lady” of her church. This was definitely very true as
she boasts a personal net worth from TV contracts and other business dealings of 5 million
dollars and her husband Robert Jr. Cosby has one of over 50 million dollars. Showing her
opulent 15,000 square foot Park City Mansion, Bently’s, Range Rovers and hundreds of
thousands of dollars in designer clothes. As the richest cast member among Lisa Barlow, Jen
Shah, Heather Gay and Meredith Marks Mary came under harsh security when her church was
“exposed” to have used manipulative tactics to receive money from members. A video of May
leaked screaming at her congregation calling them “poor old people '' in response to the lack of
expensive birthday gifts. This controversy prompted the visit from cast members Jen Shah and
Heather Gay for season three of “The Real Housewives of Salt Lake City.”
Mary has departed from the bravo series but won’t be financially hurting. As her Park
City mansion and other aspects of her luxurious life are owned by Mary’s religious organization
she won’t be paying any taxes any time soon. Per Insider Magazine.
A final argument is the legal ramifications for churches not paying taxes. William O.
Douglas, in his dissenting opinion in Walz v. Tax Commission of the City of New York, stated on
May 4, 1970, “If believers are entitled to public financial support, so are nonbelievers. A believer
and nonbeliever under the present law are treated differently because of the articles of their faith.
I conclude that this tax exemption is unconstitutional.” This logic has already been put into
practice as a satanic temple in Houston Texas has officially been granted tax-exempt status. This
allowed for the temple among many to apply for religious grants and own property free of tax.
According to the Rolling Stone. This allows for the question if so much fraud and dishonesty
surround the tax-free ability for churches why does it exist? Also, why does our government
allow this to happen when so many people in need of services are matched with such a lackluster
response? If we had a tenth of this tax-exempt wealth a multitude of issues could be solved. Why
let so many commit crimes in the name of the lord?
Ever since the inspection of the Constitution false prophets have taken advantage of
the world. The examples show that many have taken advantage of biblical ideals into cash cows.
Why allow such problems as climate change, world hunger and poverty to plague the world
when billions of dollars in assets are left untaxed? Governments need to crack down on an
industry taking advantage of someone who was supposed to be the king of equality, Jesus.