Million Dollar Homes of Texas Ministry Leaders Scrutinized for Tax-Exempt Status

Opponents of religious exemptions say other Texas residents—and the state budget—suffer as a result. Fewer tax dollars from church-owned properties means less money for governmental services, unless sales taxes or other fees are raised.

In its push to tax churches and end “IRS favoritism,” the Freedom From Religion Foundation proclaims “Because churches pay nothing, you pay more.” But in a fact-check of a popular claim, Politifact.com finds: “The federal income tax revenue that would be generated by removing the tax exemption for churches would not be enough to reduce income tax rates for individuals to 3%.”

Tax Foundation researcher Jared Walczak says, “Even if we bent logic to treat churches as for-profit entities, and assumed an ordinary rate of profit for them, the tiny amount of additional revenue this would generate wouldn’t budge individuals’ effective tax rate at all.” He adds, “On the whole, the notion that houses of worship are somehow depleting the treasury is what the Ten Commandments would call ‘false witness.’”