Churches don't pay taxes? (question)

[Thinktank]

So churches don't pay property taxes? so what? It's not that big of a deal.

But here's my question:

A rich guy donates $100,000 to a church. He gets to deduct that amount, to save paying income tax.
The church then spends that money sending someone to Africa or Europe to preach, stay at 5 star hotels etc.


Is that how it works?
If that's how it works, then maybe churches are a bit of a scam.

[Glacier]

So churches don't pay property taxes? so what? It's not that big of a deal.

But here's my question:

A rich guy donates $100,000 to a church. He gets to deduct that amount, to save paying income tax.
The church then spends that money sending someone to Africa or Europe to preach, stay at 5 star hotels etc.


Is that how it works?
If that's how it works, then maybe churches are a bit of a scam.

That's not how it works. Some rich dude donates $100,000, and he gets 20% as a tax credit, so he's out $80,000. If he were a true hedonist, he would keep all of it, and come out $80,000 ahead.

[Thinktank]

so taxpayers must pay an extra $20,000 in taxes
every time a church gets $100,000
and what does the church do with the money?

travel?

where does the money go?

[Hmmm]

so taxpayers must pay an extra $20,000 in taxes
every time a church gets $100,000
and what does the church do with the money?

travel?

where does the money go?

Where does it go? You mean because land and buildings are all free, plus utilities are free for churches? Oh wait.....They don't pay tax, they don't live free and have places of worship with everything they need for free. Taxes free all else paid, Clear? Discuss.

[TreeGuy]

Rich dude donates $100,000 and gets a tax credit based on a CRA calculation, which factors a few things including income. It’s worth noting that the tax credit is higher for political donations.

http://www.cra-arc.gc.ca/chrts-gvng/dnrs/svngs/clmng1b2-eng.html

http://www.livewelldogood.com/charitable-donations-top-tax-tips.php

Let’s say for arguments sake he gets $20,000 back and takes a vacation.

The church uses that $100,000 to pay wages, utilities and other operating expenses.

Then monies left over get used to run programs for the community as well as supporting programs like the food bank.

I would argue that if churches had to pay property taxes that less money would flow back into the community and there would be less programs for those that need them.

A church like Trinity offers a lot of programs/classes free of charge or a nonimal fee and supports the food bank and other programs. They also have some overseas programs they support.

I’m not sure why people get so bent out of shape over this topic.

[youjustcomplain]

I’m not sure why people get so bent out of shape over this topic.

Ok, but flip your comments around. What if I became tax exempt too? I would have all this extra money to give to the food bank, or other charities.

If $100,000 from "rich guy" goes to the church, there is no way for the gov't to regulate how its spent. Sure, some of it may go to paying utilities. (the rest of us pay our utilities after taxes are garnished). Some of it may go to food banks or shelters, but maybe not. Some may go to classes, that may or may not be of any interest to most people. Some money might go over seas in the form of charity, or from the church sending people to go "spread the word". I don't much care how the money is spend. I just don't understand why it gets an exemption.

I'd hardly say that most people are bent out of shape over the topic. I think it's quite fair to disagree with a government tax policy without being angry about it.

[sobrohusfat]

there is no way for the gov't to regulate how its spent...

You want the government to regulate where churches spend the freely donated - after tax - money they receive - lol THE GOVERNMENT!?!

... and while we're at it lets have prison psych-ward inmates be in charge of child day-care facilities.

[youjustcomplain]

there is no way for the gov't to regulate how its spent...

You want the government to regulate where churches spend the freely donated - after tax - money they receive - lol THE GOVERNMENT!?!

... and while we're at it lets have prison psych-ward inmates be in charge of child day-care facilities.

At some point, did I state that I wanted the government to regulate how donated money is spent? Or is this just another intentional straw man argument; intentionally misrepresented. Either that or your reading comprehension is just poor.

[Glacier]

At some point, did I state that I wanted the government to regulate how donated money is spent? Or is this just another intentional straw man argument; intentionally misrepresented. Either that or your reading comprehension is just poor.

Maybe I'm stupid too because that's how I read your post too: that you think only regulated charities should get tax exemptions.

What are you saying then? That no charity or non-profit should exempt from paying tax? Should The Nature Conservancy of Canada pay tax on the millions of acres that it owns?