Sean Faircloth: End Tax Loopholes for Millionaire Ministers

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Basketball ministers too!

I just watched the video. While it does a good job of addressing the problem as it relates to the high flyers in the ministry business, it does not address another significant area of abuse on the lower end; those basketball ministers and the like at private schools like Pepperdine. In response to arm-twisting by Bush '41 and Burleson, the IRS agreed to recognize, contrary to fact and law, certain private schools as integral agencies of the church so that the employees could register as ministers and claim the housing exclusion. Such treatment was denied at least twice over a period of 20 years prior to the Bush/Burleson effort. For 40 years private school employees have increased their exploitation of the gimmick that allows them to register as ministers and have all or much of their private school compensation tax free. Regardless of how one feels about that, it is a story that has been kept mostly secret.

basketball ministers

As a matter of fact we bought our house from just such a person. The basketball coach at the Rock, a "Christain" Church school where he was also an assistant minister. He seemed to do quite well. Apparently owned some low quality rental and another nice house before he had this one built. It has all the bells and whistles--swimming pool, 3 car garage, an acre of land in a gated community. The rest of the ministry also has nice homes according to the pool guy. When the housing market took a dive, these folks lost their rental income and could no longer afford the house. Good Christians that they were, they stopped making payments, and went for a short sale, effectively stiffing the bank. Having been a private school teacher, I know a normal honest person could never afford this house on a teacher's salary or even two teacher's salaries, especially private schools!
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