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Wrong Profession


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Man, I knew I was in the wrong business. And if this college or poker thing doesn't work out for you young guys think of the church biz.http://outerbrightness.com/?p=197This is as much of a political post as it is religious. There are many big systemic and legal inequalities in our country when it comes to religion vs other types of organizations. The Internal Revenue Code contains provisions that benefit religious organizations while leaving other organizations out. A secular person might argue that the CEO of a company who makes microchips or whole wheat bread is doing much more good in the world than a minister of a church whose doctrine is not based on anything except, in the best scenario, good feelings and tradition, and in the worst case scenario, power and fear. The CEOs of many charitable organizations are doing amazing work, but they’re not ministers, so they don’t receive the same special tax status as a minister.I do recognize that scientific, education, and philanthropic organizations are also recognized as tax-exempt at the entity level. But for whatever reason, the ministers get an extra benefit at the individual level which I find hard to understand. If the reason is because the minister is engaged in noble work for little pay, then what about teachers or scientists or most farmers or anyone else who doesn’t get paid much for meaningful work?This past week, I did a tax return for a local minister. I want to share some aspects of his return because it really shines a spotlight on the inequalities and amazingly unfair treatment a minister can get in our country. It’s mind-blowing; at least I thinks it is.The minister gets paid from his church, from which he received cash of $105,000 in 2009. He received a W-2 with wages of $40,000 and a “housing allowance” of $65,000. First, ministers, along with other state workers, are allowed to elect out of social security and Medicare. By electing out, they don’t have to pay into the programs and they don’t ever get to draw from the programs either.Next, of his housing allowance of $65,000, he only has to recognize as income the portion that he did not spend on ANYTHING related to his house. So, he can essentially deduct mortgage interest, mortgage principal, taxes, utilities, HOA fees, insurance, furniture, appliances, silverware, napkins, gardeners, soap, towels, etc, etc, etc from his income. Normal people can only deduct their interest and property taxes. So, after all of his expenses, he only had to recognize about $9,000 of his housing allowance as income, for a total income of $49,000 ($40,000 in wages and $9,000 of excess housing allowance).Next, even though he already deducted all of his housing expenses, including interest and property taxes, he still gets to use Schedule A like everyone else. So he is able to deduct his mortgage interest and property taxes again. (Technically, the first time was just an exclusion from income, so he’s not getting double deductions. But essentially he is. The end result is a double deduction).The following table illustrates the difference in taxes paid by the minister and a hypothetical “normal guy” earning the same amount with the same expenses. As you’ll see, the “normal guy” ends up paying about $18,000 more in taxes.Ministers2.jpgSo in the end, the minster made $105,000, had $740 of total tax, but actually ended up getting a refund of a few hundred dollars because of various child tax credits.This is unfair. What makes his profession so special that he is able to take deductions that no one else can? Why is he able to elect out of social security? Why is he able to deduct his mortgage interest and property taxes twice?To top it off, he wrote a letter to our firm asking for a discounted preparation fee because he is a minister of humble means. It made me sick to my stomach.

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This is unfair. What makes his profession so special that he is able to take deductions that no one else can? Why is he able to elect out of social security? Why is he able to deduct his mortgage interest and property taxes twice?
Now wait just a gosh-darned minute. You're telling me that some groups get special tax breaks??? Inconceivable.
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Now Listen to This. It says Dracula has to rise from his Coffin every night, now, ya ever hear somthhin like this Costello?Ka ka ka kahhhhhh ka kaWhy are you raisin your arms up like that?kah kah kahhhhhhhhhhhhhhhhhhhhhhAe you tryin to say that the coffin moved?kah kah kah kah khhhhhhhhhhhhhhhhhhhhhhhhh

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This sounds like the right reverand Dr billy sol Prespice, owner and operator of the first church of the black death,and discount house of worship.Where you can get a 5 dollar blessing pledge for 3.98 and get full credit with the lord for the entire 5 dollars.Billy sol is also the owner of the worlds first drive in church and baptismal carwash. He can be reached at Billysol.net/yahoo .com

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