Why pastors’ housing allowance is tax-exempt

As we reported, an appeals court upheld the practice of pastors not having to pay taxes on their housing allowance.  But, you might ask, why is that?  Joe Carter explains the history of that provision, putting it into the context of the laws exempting religious property from taxation that go back through English Common Law  into ancient times. [Read more...]

Pastors’ housing allowance upheld

Pastors have traditionally been allowed to take a large percentage of their salary as a tax-free housing allowance.  A lower court last year ruled that the benefit is unconstitutional.  But now an appeals court has overturned that decision, meaning that the housing allowance is still on. [Read more...]

Why corporations move

We blogged about “inversions,” when a corporation moves its official headquarters to another country.  George Will offers an explanation from the corporation’s point of view, going on to criticize liberals for waxing indignant over the consequences of policies they themselves promoted. [Read more...]

Would you trade the income tax for a value added tax?

A former Treasury official in the George H. W.  Bush administration has put forward a new tax reform proposal.  It would eliminate the income tax for households that earn less than $100,000, cutting the rates for those above that threshold to 16% or 25.5%.  Instead, everyone would pay a Value Added Tax (basically a national sales tax) of 12.9%.  Charles Lane explains the proposal after the jump.

What would you think of this? [Read more...]

Corporations changing their citizenship

The corporate tax rate in the United States is 35%, the highest of all developed nations.  So more and more companies are practicing “inversion,” a transaction on paper that relocates their corporate home (while leaving most operations and employees where they are) to another country, such as Ireland, where the corporate rates are 12.5%.

Even President Obama wants to lower corporate rates–to 28%–and Republicans would like it much lower, but tax reform has been going nowhere, so lots of companies are making their move.  Do you blame them?  Are they un-patriotic or just doing what they have to do? [Read more...]

IRS may go after underwater homeowners

Homeowners who were underwater on their homes but who took advantage of mortgage relief programs face the prospect of the IRS calculating the amount by which a portion of their loan was forgiven as income. [Read more...]


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