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"Whatever tax the Government feels that is reasonable for us to pay, we'll
pay it," said Rev Rennard White, chairman of the powerful Jamaica Umbrella
Groups of Churches (JUGC), which represents the large majority of Jamaican
Christians.
In an interview with the Jamaica Observer, White said: "We should pay our
fair share like everybody else, and if the Government decides to ask us to pay
taxes on property that church buildings are on then so be it."
The JUGC members are the Church of God in Jamaica, Jamaica Association of
Full Gospel Churches (JAFGC), Jamaica Council of Churches (JCC), Jamaica
Pentecostal Union (Apostolic) JPU(A), Jamaica Association of Evangelicals
(JAE), and the Seventh-day Adventist Church.
White's comments followed a press release in which the JUGC called on the
Portia Simpson Miller-led Administration to implement other cost-saving
measures such as reducing the size of the Cabinet, slashing salaries of MPs,
as well as reducing the number of advisors to the Government.
"The JUGC therefore appeals to our Government, as it prepares for the next
national budget, to have such actions implemented," said the release.
The package, which drew the ire of the Opposition and has been met with
general shock and outcry by the public, includes increases in property and
education taxes, some Customs duties, as well as on taxes levied against
lottery winnings, and telephone calls. It also includes the lifting of $45 billion
from the National Housing Trust over a four-year period.
White argued during the interview with the Observer that taxing offerings
would amount to double taxation as the givers' incomes would have already
been taxed at source.
White was keen to add that the church deduct, and pay over to the State, the
http://www.jamaicaobserver.com/news/Church-ready-to-pay-taxes_13665273
OOOOOOOOO
There goes Peter Phillips again, shafting us with his big package. Tax
package, that is.
The recently announced withdrawal tax has got to be one of the most
unpopular and reviled economic measures ever proposed in the history of
Jamaica. Many of us, including the prime minister, appear to be dazed and
confused by it. It has been roundly rejected by the citizenry, including
business leaders and civil-society groups. According to the leader of the
Opposition, Andrew Holness, the tax would "disincentivise businesses" and
open the door to other "brazen and thoughtless tax impositions under the
guise of passing some IMF test".
It is easy to criticise and reject the withdrawal tax, but what are the
alternatives? As a concerned citizen, I would like to offer my two cents' worth
(which will probably be taxed) regarding measures to ease the country's
almost $2-trillion debt. In this regard, I have four suggestions for serious
consideration.
Yes, there are many destitute persons who present themselves for health
care, but paying a minimal fee is not unreasonable to request and would ease
the burden on the Government to pay health professionals and to pay for
utilities, drugs, medical supplies and investigations.
The world's oldest profession isn't going away anytime soon. Prostitution is
legal in the Netherlands, Switzerland and Germany, among other countries. In
the abovementioned, sex workers are regularly tested for sexually
transmitted infections and the system is regulated. The legal prostitution
industry in Netherlands generates US$800 million (625 million euros) a year,
the tax rate for sex workers being 33 per cent. In Switzerland, prostitutes pay
VAT (value added tax) on their services and some accept credit cards. (I
wonder how they swipe them.)
TAX CHURCHES
Jamaica has the most churches per square mile (make that per square inch!)
in the world, with even more churches being built as you read this article.
One argument that is used to defend their tax-exempt status is that they are
charitable organisations, but they do not all possess that mindset.
I know a devout member of a particular church who has been paying tithes
and offerings for many years. She 'buys and sells' for a living, and when her
car trunk was broken into and her goods stolen and she went to her church
for financial assistance, she got none. Another acquaintance of mine lost her
job, and when she informed her church of this, explaining that it would
negatively impact on her ability to contribute to the institution, she was
asked if there wasn't anything in her house that she could sell in order to
keep the contributions coming.
Now, is there any good reason why these organisations should not be paying
tax? Not even a 'toops'?
Suggesting that churches pay tax while simultaneously suggesting legalising
marijuana and prostitution will not go down well with my Christian friends,
many of whom are already convinced that when I die I will be going in the
'down' elevator to the basement to hang out with Hitler, Jack the Ripper, and,
of course, good old Satan. But in times like these, we must think outside the
box, examine our options dispassionately, and engage in objective debate if
we are to claw our way out of our fiscal abyss.
Michael Abrahams is a gynaecologist and obstetrician, comedian, and poet.
Email feedback to columns@gleanerjm.com and
michabe_1999@hotmail.com.
http://jamaica-gleaner.com/gleaner/20140428/cleisure/cleisure2.html
ooooooooooooooooooooooooo
Business
Government planning to tax churches, charities?
4 Comments
But the tax breaks, which are approved after applications are considered by
the finance ministry, mostly go to charitable organisations, while public
sector bodies and government contracts take up a significant portion of the
rest.
What's more, with a targeted primary surplus of 7.5 per cent of GDP, or
approximately $100 billion next fiscal year, the possible savings hardly dent a
$20 billion to $40 billion shortfall.
Even then, Finance Minister Phillips said that "concrete steps" towards getting
rid of the tax benefit will have to be taken before it can go to the International
Monetary Fund's (IMF) board for an agreement.
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"We have to intensify our tax reform efforts and, in particular, virtually
eliminate discretionary waivers whilst strengthening the tax administration
Of the $3.6 billion in approved discretionary waivers during the seven months
to October 2012, 47 per cent went to charitable organisations, 37 per cent to
government institutions and another six per cent went to contracts.
Similarly, for the 2011/2012 fiscal year, which ended March 31, 2012, 58 per
cent of the $4.1 billion in waivers went to charities, and another 15 per cent
went to government-related services.
A large part of the waivers related to government services had to do with the
importation of vehicles by agencies such as the Jamaica Urban Transit
Company (JUTC).
While the charities, such as Food for the Poor, would get the pass on taxes
related to importation of essential items, such as food, pharmaceuticals,
medical supplies, school supplies, books, and furniture.
The Government also plans to implement another debt exchange, pass public
debt management legislation, enact a new Omnibus Incentives Act, as well as
an amended Revenue Administration Act, and secure a public sector wage
contract before going to the IMF's board.
http://www.jamaicaobserver.com/business/Government-planning-to-taxchurches--charities-_13628842
0000000000
RO (yes)
CON (no)
Erik Stanley, JD, Senior Legal Counsel with Alliance Defending Freedom,
stated in his Mar. 7, 2012 post titled "Should Churches Be Tax Exempt?" on
Alliance Defending Freedom's "Speak Up" blog:
"There are very sound and valid reasons for church tax exemption... The
social benefit theory justifies tax exemption for churches as a kind of bargain
churches provide needed services, so they are entitled to tax exemption.
One corollary of the 'social benefit' theory that is often overlooked is what I
have termed the 'intangible benefit' theory of tax exemption. This highlights
the intangible and often unseen benefits provided by churches to the
community. Things like reduced crime rates resulting from transformed lives,
suicides prevented when people surrender to Christ, and people with
destructive behavioral patterns that harm the community changing into hardworking and virtuous citizens who contribute to the well-being of the
community. It is difficult to put a price tag on these types of intangible
benefits provided by churches, but there is no question that they exist..."
"...I am religious -- a progressive Christian -- and I will argue for the taxexempt status of religious organizations for only one reason. Moderate and
progressive religion is overwhelmingly formed in the U.S., and it is an
essential voice in national and international discourse. We are an important
moral and ethical voice for society as a whole, a voice that has to be religious
to respond to other kinds of religious movements.
The bottom line is that if historic churches like the one I serve had to pay
property taxes, many of us would close. The liberal, diverse, urban churches
in historic buildings would be priced out, and the newer, suburban minimall
churches would be the church of the future. They are not always, but tend to
be, overwhelmingly conservative. In the political arena, the right defends its
agenda by that same conservative Christian language. The Christian center
and left are a minority whose faith demands they work toward a more just or
compassionate society, and many of us are also the stewards of prime real
estate.
Our tax-exempt status gives minority views a space to seed and grow,
often ahead of the political culture."
Mark L. Rienzi, JD, Senior Counsel at the Becket Fund for Religious Liberty,
stated in his May 10, 2012 NYTimes.com article titled "Good for Religion,
Good for America":
Walz v. Tax Commission of the City of New York, the US Supreme Court case
whose 7-1 majority opinion dated May 4, 1970 was written by Chief Justice
Warren E. Burger, stated:
"...[F]or the men who wrote the Religion Clauses of the First Amendment,
the 'establishment' of a religion connoted sponsorship, financial support, and
active involvement of the sovereign in religious activity...
May 4, 1970 - Walz v. Tax Commission of the City of New York (283KB)
Tax exemption is not something to be turned on and off like a spigot, but
an optimum, constant condition for allowing the religious function to be
performed in a 'free market' situation, where would-be practitioners are
allowed to 'sink or swim' on the basis of how well they meet the religious
needs of adherentswithout governmental interference, either to hinder or to
'help' (which is still to hinder). One does not have to be a partisan of one
religion or of any to appreciate and wish to maintain this commendable
'hands off' neutrality of government toward religion, which the First
Amendment commands, and which tax exemption so excellently epitomizes."
Scott Tibbs, evangelical conservative blogger, stated in his June 24, 2009
ConservaTibbs.com blog post titled "Should Churches Pay Taxes?":
"I would argue that subjecting churches to property taxes is a bad idea.
The excesses of some Christian merchants aside, Churches are not profitmaking entities. Many smaller churches struggle to make monthly expenses
like salary and mortgage. Subjecting churches to property taxes would be a
major burden on many smaller churches already struggling to get by and
would therefore be a restriction on religious freedom...
Don Boys, PhD, evangelist and former USA Today columnist, stated in his
1997 article "Should Churches Pay Taxes?," posted on the Cornerstone
Communications USA (Common Sense for Today) website:
"When there was discussion about bringing churches under the new Social
Security system in the days of President Franklin Roosevelt, he quickly
replied, 'But that would be taxing God!' And so it would...
...Churches should not pay taxes because the government does not have
the authority to demand it!
Does not the Constitution clearly prohibit the government from making any
law restricting religion? Does not the ability to tax actually mean the ability to
control or destroy? I thought most of us believed in the separation of church
and state (but not separation of God and state), but if so, how can any
government entity presume to tax the church? After all, a 'higher' always
taxes a 'lower,' and will any Bible believer maintain that government is over
the Church of the Living God? I thought Christ was preeminent over all."
John M. Farley, former Archbishop of New York, wrote in his 1894 article "Why
Church Property Should Not Be Taxed," reproduced at Archive.org:
"The people see that church property is really, in the point of use, their
property, and that it would be as sensible to tax the New York City Hall and
Central Park as to tax the churches... The churches are as free to the public
as the city buldings; they have been built for the use of the people, with the
people's money; and they are still supported by voluntary offerings. They are
kept open to suit the necessity and convenience of the public, and all their
services are for the multitude. It may be said in fact that the churches are
more truly the property of the people in point of use than even the city
offices, for in the churches they are always welcome, and it is not for the
comfort and happiness of the clergy that these buildings are erected, but
solely for the people, after the first intention of honoring God... To tax
property so truly the property of the people is simply an absurdity of the
same nature as taxing the public schools because they enjoy the protection
of the Federal government...
Jeremy Fejfar, PharmD, Comminity Columnist for the La Crosse Tribune and
member of the La Crosse (WI) Area Freethought Society, stated in his Apr. 15,
2012 op-ed titled "Why Are Churches Tax-exempt?" and posted on
LaCrosseTribune.com:
For every house of worship that is exempt from property taxes, taxpayers
have to pay more than they would have if a residence or business were on
that same piece of land. Do churches not benefit from the same taxpayerfunded benefits that the rest of us enjoy protection by the police and fire
departments, maintenance of roads to and from their places of worship, etc?
Why then should they be exempt from these taxes?"
"While some people may be bothered by the fact that there are pastors
who live in multimillion dollar homes, this is old news to most. But here is
what should bother you about these expensive homes: You are helping to pay
for them! You pay for them indirectly, the same way local, state, and federal
governments in the United States subsidize religionto the tune of about $71
billion every year...
Hypothetically, the leader of a drug cartel could have one of his lieutenants
start a church and file for tax-exempt status. Once granted, money from the
sale of drugs could then be donated to the religion, which could use the funds
to build extravagant buildings (including a 'parsonage'), host extravagant
'services' (a.k.a. parties) for members of the religion, and pay extravagant
salaries to its ministers (including the leader of the cartel). Drug money could
be laundered through the churchs bank accounts with little risk of being
caught by authorities. If drug cartels and the Mafia arent already doing this,
wed be surprised...
"If history be our guide, then tax exemption of church property in this
country is indeed highly suspect, as it arose in the early days when the
church was an agency of the state...
Ulysses S. Grant, 18th President of the United States, stated during his
Seventh Annual Message to Congress on Dec. 7, 1875, reproduced in A
Compilation of the Messages and Papers of the Presidents, Volume VII:
Ulysses S. Grant, edited by James D. Richardson:
"I would also call your attention to the importance of correcting an evil
that, if permitted to continue, will probably lead to great trouble in our land
before the close of the nineteenth century. It is the accumulation of vast
amounts of untaxed church property.
In 1850, I believe, the church property of the United States which paid no
tax, municipal or State, amounted to about $83,000,000. In 1860 the amount
had doubled; in 1875 it is about $1,000,000,000. By 1900, without check, it is
safe to say this property will reach a sum exceeding $3,000,000,000. So vast
a sum, receiving all the protection and benefits of Government without
bearing its proportion of the burdens and expenses of the same, will not be
looked upon acquiescently by those who have to pay the taxes. In a growing
country, where real estate enhances so rapidly with time, as in the United
States, there is scarcely a limit to the wealth that may be acquired by
corporations, religious or otherwise, if allowed to retain real estate without
taxation. The contemplation of so vast a property as here alluded to, without
taxation, may lead to sequestration without constitutional authority and
through blood.
James A. Garfield, 20th President of the United States, was quoted in the US
Congressional Record of 1874, available on the US Department of State's
InfoUSA website, as stating:
Joseph McCabe, atheist writer and former Franciscan monk, wrote in his 1930
essay "Why I Believe in Fair Taxation of Church Property," published in 1930 in
Church property in the United States is said to be worth about four billion
dollars, and it is increasing rapidly in value... The anachronism is that city
property of immense value is used by only about a tenth of the taxpayers of
this city, yet the nine-tenths lazily subsidize it by remitting taxation..."
Lawrence Sager, LLB, the Alice Jane Drysdale Sheffield Regents Chair at the
University of Texas School of Law, and Christopher L. Eisgruber, JD, Provost of
Princeton University, wrote in their May 9, 2012 NYTimes.com article titled
"Dont Play Favorites":
Richard Dawkins, DPhil, DSc, former Charles Simonyi Professor of the Public
Understanding of Science at the University of Oxford and author of The God
Delusion, stated in his July 6, 2012 Washington Post op-ed titled "Dont Need
God to Be Good or Generous":