Tax Deductible Tithing

For this week's short online essay of the week, go read the Daily Herald's interesting editorial on tax reform proposals being discussed in the Utah legislature. The editorial notes: "The Legislature's Tax Reform Task Force is considering the idea of creating a flat income tax in Utah with a single standard deduction. The plan ... would eliminate deductions for children and for charitable contributions." One might expect the Church to be opposed to such a move, but here is the editorial's summary of the actual LDS position: "But the church said it's not worried about reducing the amount of tithing from Utah members. It is other charitable groups the church is worried about" (grammar corrected). Right. I'm not sure what bothers me more: That some LDS spokesperson could make that statement with a straight face, or that there are a good many Utah LDS who will accept it as a sincere statement.

Comments

[lyle]

Dave: Your level of being bothered is probably about the same as those of us who are bothered by you doubting the sincerity of the Church.

The LDS Church has been a good friend to non-LDS churches and charities in Utah since its founding. In the face of historical evidence and practice; what leads you to believe and openly doubt the statement?

Or do you doubt the faith of Utah Saints; that they would stop/decrease their tithing if the tax deduction were eliminated?

[nick]

Ohhhhhhh pu-Leeeeeeeaaaasssseeee, lyle.

[will]

The article is incorrect. The church never said that it's not worried about reducing the amount of tithing from Utah members.

[lyle]

Please what Nick? It is a magic word, usually (and properly) associated with civility; but...to what end?

[don]

The statement probably really does represent the church's position...it just sounds like something I would say...with my tongue in my cheek.

Will losing a tax deduction decrease the member's tithing contributions? I really don't think it will. Will losing the deduction decrease the amount given to other charities? I really think it will.

The bigger problem is that of taxing income itself.

[Lisa M.]

I think it is really bad reporting when they don't quote the source or take quotes out of "prepared statements"

I think the main way we would see a huge decrease in charitable donations would be if businesses and corps were not alloted deductions for their contributions.

The LDS tithe will continue to be paid I suspect, and I seriously doubt there would be much of a difference.

[Stephen M (Ethesis)]

Actually, I would agree with the spokesperson.

I'm not sure why the disbelief or hostility.

[Last Lemmng]

I think the main way we would see a huge decrease in charitable donations would be if businesses and corps were not alloted deductions for their contributions.

Not likely. Individuals claimed nearly 14 times the amount of charitable contribution deductions in 2002 than did corporations. In Utah, the average taxpayer claimed more than double the national average in charitable contributions as a percentage of income, so the disparity with corporations would be even greater. Even the estates of dead people make more charitable contributions than corporations do.

Nonchurch contributions will probably suffer more under the Utah proposal, because Mormons will pay tithing first, then make other donations out of a smaller pool of disposable funds. But the loss of a 5 percent subsidy is not going to make much difference. The loss of the federal income tax deduction or the estate tax deduction would make a much bigger dent. The latter alone would reduce charitable contributions by between 6 and 12 percent. (see http://www.cbo.gov/showdoc.cfm?index=5650&sequence=1#pt4)

[APJ]

Regardless of Utah saints' belief and faith, there are several families who WOULDN'T be able to pay tithing without the favorable tax laws. Whether the LDS church cares or not, it would see a definite decrease in funds coming in, because so many LDS families in Utah are already strapped financially.

Maybe the brethren have foreseen the tax reform and are hoping that the billion dollar purchase of that down-town mall will yield a healthy profit and make up the difference.