The U.S. District Court Judge Barbara B. Crabb held in an opinion filed today that the housing allowance exemption for "ministers of the gospel" -- IRC Sec. 107(2) -- violates the Establishment Clause under the Supreme Court's holding in Texas Monthly, Inc. v. Bullock, 489 U.S. 1 (1989).
26 USC § 107 - Rental value of parsonages reads in part:
In the case of a minister of the gospel, gross income does not include—
This is a major victory for freedom from government sponsored religion, for the First Amendment of the Constitution prohibits government favoring one religion over another, or religion over nonreligion.(2) the rental allowance paid to him as part of his compensation, to the extent used by him to rent or provide a home and to the extent such allowance does not exceed the fair rental value of the home, including furnishings and appurtenances such as a garage, plus the cost of utilities.
The benefit of the §107(2) exemption to clergy has been estimated to relieve ministers of $2.3 billion in taxes over five years. See statement of Congressman Jim Ramstad regarding the Clergy Housing Allowance Clarification Act of 2002, 148 Cong. Rec. H1299-O1 (Apr. 16, 2002).
Judge Crabb noted: "Some might view a rule against preferential treatment as exhibiting hostility toward religion, but equality should never be mistaken for hostility." I made a similar point in my October 19th blog Myth #11: Removal of the Tombstone to Jesus Christ Would Constitute Hostility Towards Religion.
I am kinda partial to Peter J. Reilly's coverage on this at Forbes:
ReplyDeletehttp://www.forbes.com/sites/peterjreilly/2013/11/23/judge-declares-exclusion-for-clergy-housing-payments-unconstitutional/
He's posted a couple of followup articles as well.
Hello, Bob Ritter!
It's been awhile, and I just happened to get an email from Mike indicating you had informed him of the FFRF victory.