Tag Archive | "Exemption"

Tax Exemption: Constitutional Right Or Government-granted Privilege?


In particular, I am referring to exemptions from paying federal income tax. Ever since the 16th Amendment was added to the Constitution and the first federal income tax was passed in 1913, the federal government has recognized that houses of worship (obviously due to the First Amendment’s freedom of religion clause), charities, social welfare organizations, and certain other so-called non- profit organizations had the right not to pay income tax.
However, in 1954, Congress amended tax laws to strictly regulate political activities by tax-exempt non-profits.
Moreover, except for religious entities, non-profits are generally required to petition the IRS in order to be granted exemption from income tax.
Fast forward to 2013 and the current IRS scandal. The Tea Party-affiliated groups and other political-oriented organizations claim to be harassed and intimidated by the IRS. It’s one thing to exercise your First Amendment rights to free speech and freedom of association by forming groups to oppose the current Obama regime. But, it’s another thing to petition the government for special privileges (i.e. tax-exempt status).

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