Churches are tax exempt under federal law.

No? That's ok: I knew you didn't

My advice: don't make stuff up when you're cornered

That sooooo needed to be said.

(3) Corporations, and any community chest, fund, or foundation,
organized and operated exclusively for religious, charitable,
scientific, testing for public safety, literary, or educational
purposes, or to foster national or international amateur sports
competition (but only if no part of its activities involve the
provision of athletic facilities or equipment), or for the
prevention of cruelty to children or animals, no part of the net
earnings of which inures to the benefit of any private
shareholder or individual, no substantial part of the activities
of which is carrying on propaganda, or otherwise attempting, to
influence legislation (except as otherwise provided in subsection
(h)), and which does not participate in, or intervene in
(including the publishing or distributing of statements), any
political campaign on behalf of (or in opposition to) any
candidate for public office.

you need to learn to read carefully since the page you cite is part of subtitle A and begins An organization described in subsection (c) or (d) or section 401(a) shall be exempt from taxation under this subtitle unless such exemption is denied under section 502 or 503.

NFIB v. Sebelius discusses the Patient Protection and Affordable Care Act, in particular 26 U. S. C. §5000A -- which lies in Subtitle D (the portion on miscellaneous excise taxes) -- is not affected by your reference

So long as they abide by the law, they can't be taxed.

How can he be so wrong? He asked for a cite that he claimed didn't exist, I provided it, and now he's still saying it doesn't exist.

And it's not a penalty anymore, it's a tax now.

As a non-profit, they are generally exempt from most property taxes, but they do pay excise taxes. If you want wine for Communion, it got taxed.

is a tax it is a payroll tax. So yes they have to pay. Churches are exempt from paying income tax and property tax, not payroll taxes.

So much for Christian Compassion, getting as rare as Conservative Conservatism.

that is not tied to any business's religious beliefs.

If the Catholic church drops health care coverage, they will have to pay a fine for doing so. They don't get to decide how that money is used for health care, either.

Finding that it was a tax was the entire basis of ruling the ACA constitutional.

Say a church drops all coverage. They don't pay taxes, so how will it be collected? And if the government attempts to collect, on what basis would they do so, since churches are tax exempt, and the SCOTUS has ruled that the ACA taxes, not penalizes.

you are so right.

that's an interesting question... of course, I don't think religious institutions should be tax exempt - esp. not one as rich as the Catholic Church - but it would take a lot more than me thinking that to change the current law.

My mind just thinks in off the wall way sometimes, and I'm always assuming there is an ulterior motive when a conservative does something that is unexpectedly good.

Not everything churches do are tax exempt. They could be very well liable for the penalty tax.

What I'm thinking of are the Catholic schools, for example. They are tax exempt, and they are covered under ACA. The elementary that my daughters attended is already saying that if the contraception mandate stays, they will drop all coverage. If they in fact do that, how will the money be collected, since they don't pay taxes?

Again, not saying this is an out, it's just something that was running around in my head and that got me to thinking.

It'll end up in court but if the lien is small enough, it may make more sense for them to pay the lien to expedite the transfer of property rather than to waste 2+ years in court fighting it.

they don't have to pay income tax, many states don't require payment for property taxes, but payroll taxes (which this is one) they most definitely pay.

The only exception for payroll taxes are some ministerial positions (ie priests) which the church can opt out of if they have theological objections -- however, the church must then provide ongoing support for the pastor / minister.

When they are considered employers, they have to follow the law.

It may not work that way.

will go the way of the dinosaur. Fine with me. Churches who advocate politics and influence politicians should be taxed. The last time I looked the clergy uses the roads, bridges, police among other things we all use and pay for with our taxes.

Catholic hospitals and universities are not churches and are thus subject to taxation.

I'd be surprised if they pay taxes, but I'm going to check it out.

Regardless of the status they're using to gain tax exemption, if they drop coverage, how will they be taxed, since they don't pay taxes?

and bennie's attract. Drop insurance coverage and see who you attract for employment.

What the contraception applied to was hospitals, universities, and other INSTITUTIONS that are affiliated with a religion but are not religious institutions themselves. Those institutions do NOT employ only people of a certain faith, etc.

I don't think the ACA requires CHURCHES to provide insurance, but I could be wrong about that.

I'm sure the ACA takes churches into account some way and makes that clear.

However, take Catholic schools for example. They are not exempt from the ACA, however, they are exempt from paying taxes. So, if they drop their coverage, how would the tax be collected from them?

whatever you want to call it, but hte IRS doesn't have the authority to enforce its collection.

He says he will collect the tax/penalty. Do you know something the IRS Commissioner doesn't? http://www.slate.com/articles/news_and_politics/prescriptions/2010/04/maybe_the_individual_mandate_is_enforceable.html

like a refund.

But the ACA specifically states that it cannot force a sale of your property to get it, file a lien, etc., which is what the IRS is authorized to do for taxes. You've heard of tax auctions of houses, where you can buy a house for $1,000, the amount of the unpaid taxes the owner didn't pay? The IRS can't seize your property for the mandate penalty/tax, so in that respect, it's different.

And the millions who aren't required to file wouldn't be affected at all.

Any money that you have coming from the government. That would include SS payments or any other grant.

They don't offer coverage because there is no penalty. So why would they drop coverage because there is, now? The two things are not connected.

As for how to collect is, as I said in my prior post, it's my understanding that the govt doesn't have authority to collect, if someone refuses to pay the penalty. And that may be why it should be called a penalty more so than a tax. If it's a penalty, the schools would owe it. They are not exempt from penalties.

But if it's deemed a tax, then that is a problem, it sounds like. Altho the govt can't put a lien on you for it, I'm sure they'd harrass you to death, trying to get you to pay it. Make your life miserable. And if you ever wanted any funding from the fed, you might have to first pay this penalty to get it.

Those who are more interested in human rights and poverty. They can point to him as a "real" Catholic.

I used the term "Catholic Church" because the church owns and runs the Catholic organizations. I was thinking "church" as in the overarching Catholic hierarchy, rather than in the individual parish sense.

Sorry for not being clearer.

They operate soup kitchens and homeless shelters, provide support services for drug treatment programs.... Poverty and health care delivery are very often central to their missions.
I think that a perception that this particular well respected national figure who also happens to be Catholic aligns with their beliefs may increase their resolve.

I think it may even wind up going further. You can be conservative and still care about other people.

But the organizations you speak of aren't the ones that are filing suit against the government over this issue, and they aren't the ones that would drop healthcare for their employees.

but they do have tremendous influence, as they are in the trenches dealing with ordinary citizens daily. They also have peers who they discuss their activities with, including haters who have just been discredited. When it comes to everyday people and religion, the good guys win.

It's only in the instances where they are operating specifically as a religious institution that they don't.

Someone can correct me.

an employee. Churches are not individuals, so they don't buy insurance for themselves.

A church would never be asked to pay the penalty. People who worked for a church might be asked to pay the penalty if the people, the church's employees, don't purchase insurance.

So there is no problem.