Well, the notion that churches pay no taxes is largely a myth. The incomes of people employed by a church are taxed, incomes from church-owned properties are taxable, and churches pay VAT on most of the things they buy. Donations made to a church, however, are not taxable as income.
By way of illustration, let's say I start up the One True Church Of Boru. I'm too busy to conduct the weekly services myself, so I hire someone to do the preaching and pay him $50 000 a year. He pays taxes on that. Running a church is expensive, so I start up a bookstore and a restaurant, the income from both of which are taxable (provided they both realize a profit). I also own a small apartment building - while the income from the rents benefit the church, that income is also taxed. Ever eager to get more money, I organize a bake sale. I have to buy the flour, sugar, eggs, baking pans and so forth to make the baked goods, and all of these purchases are taxed.
At least, that's how it works here.
Boru
By way of illustration, let's say I start up the One True Church Of Boru. I'm too busy to conduct the weekly services myself, so I hire someone to do the preaching and pay him $50 000 a year. He pays taxes on that. Running a church is expensive, so I start up a bookstore and a restaurant, the income from both of which are taxable (provided they both realize a profit). I also own a small apartment building - while the income from the rents benefit the church, that income is also taxed. Ever eager to get more money, I organize a bake sale. I have to buy the flour, sugar, eggs, baking pans and so forth to make the baked goods, and all of these purchases are taxed.
At least, that's how it works here.
Boru
‘I can’t be having with this.’ - Esmeralda Weatherwax
