Divine Revenue

Aug 25 2013 @ 12:37pm
by Brendan James

Yglesias proposes we start taxing churches:

Whichever faith you think is the one true faith, it’s undeniable that the majority of this church-spending is going to support false doctrines. Under the circumstances, tax subsidies for religion are highly inefficient.

What’s more, even insofar as tax subsidies do target the true faith they’re still a pretty bad idea. The basic problem with subsidized religion is that there’s no reason to believe that religion-related expenditures enhance productivity. When a factory spends more money on plant and equipment then it can produce more goods per worker. But soul-saving doesn’t really work this way. Upgrading a church’s physical plant doesn’t enhance the soul-saving capacity of its clergy. You just get a nicer building or a grander Christmas pageant. There’s nothing wrong with that. When I was young I always enjoyed the Grace Church Christmas pageant. But this is just a kind of private entertainment (comparable to spending money on snacks for your book club—and indeed what are Bible study groups but the original book clubs?) that doesn’t need an implicit subsidiy.

Dylan Matthews crunches the numbers:

[Sociologist Ryan] Cragun et al estimate the total subsidy at $71 billion. That’s almost certainly a lowball, as they didn’t estimate the cost of a number of subsidies, like local income and property tax exemptions, the sales tax exemption, and — most importantly — the charitable deduction for religious [giving]. Their estimate that religious groups own $600 billion in property is also probably low, since it leaves out property besides actual churches, mosques, etc.

The charitable deduction for all groups cost about $39 billion this year, according to the CBO, and given that 32 percent of those donations are to religious groups, getting rid of it just for them would raise about $12.5 billion. Add that in and you get a religious subsidy of about $83.5 billion.