2021: A Year in Review
  • Skip to primary navigation
  • Skip to main content
  • Skip to footer

NC Council of Churches

Strength in Unity, Peace through Justice

  • Voices
  • About
    • Overview
    • Staff
    • Members
    • Covenant Partners
    • Issue Statements
    • Governing Board
  • Programs
    • NC Interfaith Power & Light
      • NCIPL Overview
      • Faith in Action NCIPL
      • NCIPL Articles
      • NCIPL Resources
      • Upcoming Events for NCIPL
      • Contact NCIPL
    • Partners in Health & Wholeness
      • PHW Staff
      • Mini-Grants
      • PHW Collaborative Pledge
      • The Overdose Crisis: The Faith Community Responds
      • Mental Health Advocacy
      • BIPOC Mental Health Grant
      • Growing Communities of Inclusion: A Faithful Response to HIV
      • Citizen Science
      • PHW Articles
      • FAQs
  • Priorities
    • Racial Justice
    • The Overdose Crisis: The Faith Community Responds
    • Gun Violence Prevention
    • Criminal Justice
    • Immigrant Rights
    • Public Education
    • Farmworkers
    • Legislative Advocacy
    • Christian Unity
    • Peace
  • Events
  • Resources
    • COVID-19 Resources
    • Publications & Reports
    • Raleigh Report
    • Lectionary
    • Sermons
  • Donate
  • Council Store
  • Show Search

Search NC Council of Churches

Hide Search

How NC Tax-reform Plans Could Fray Safety Nets

George Reed, Former Executive Director · July 13, 2013 · Leave a Comment

By J. George Reed, The News & Observer

The Senate bill and a proposal from the governor’s office would require some sales-tax payments from the largest nonprofits; for churches, the primary effect would be on large construction projects. But we believe this sets a dangerous precedent that could ultimately lead to all charitable nonprofit organizations paying sales tax to the state.

Proposals for significant changes to our state tax system now making their way through the General Assembly are cause for concern for many people of faith, concerns both for our religious institutions and their missions and for those whom we serve.

The N.C. Council of Churches has worked for all of its 78 years as an advocate for vulnerable people in our midst – people of low income and wealth, working people, those with disabilities, children, racial and ethnic minorities, migrant laborers, immigrants. So an overriding concern for many of us is that proposed tax “reform” would reduce state revenue.

The Senate budget will mean lost revenue of at least $1 billion per year (out of a budget of just over $20 billion). These cuts will lead to reduced funding for public education (pre-K through college), health care (including a pound-foolish move to limit access of pregnant women to health care), environmental protection and other vital services.

We are concerned not only about the loss of funding for important programs helping vulnerable people but also that these reductions in revenue are coming from a flattening and lowering of the personal income tax, the reduction or elimination of the corporate income tax and elimination of the estate tax. While many will cheer at news of tax cuts, cuts in services will not adequately serve our most vulnerable neighbors.

While we understand that not all people of faith will agree with our concern about the effect of lost revenue, most share our concern about the direct effect of two tax provisions on churches, other faith communities and all charitable nonprofits.


One is the proposal to end the tax deduction that a majority of congregants – those who do not itemize on their federal tax returns – can receive for their church and other charitable donations. While most people who contribute to our churches do so for reasons other than a tax break, this provision may be an incentive to some and helps those on a tight budget to make charitable contributions.

The second proposal relates to payment of sales taxes. Currently charitable nonprofits can receive sales-tax refunds. Some proposed tax plans require more charitable nonprofit organizations, including some churches and other faith-based organizations, to pay sales taxes for the first time.

The Senate bill and a proposal from the governor’s office would require some sales-tax payments from the largest nonprofits; for churches, the primary effect would be on large construction projects. But we believe this sets a dangerous precedent that could ultimately lead to all charitable nonprofit organizations paying sales tax to the state.

These tax plans, if enacted, could cost us millions of dollars per year – money that we, and our congregants, don’t have to spare. Churches would have to look carefully at the programs we run – which include food pantries, soup kitchens, health ministries, refugee resettlement, child care, housing, disaster response and other ministries – to try to figure out how best to minimize the effect on our church members and the community at large. Churches, like other charitable nonprofits, would have to consider closing some programs to preserve others. It could also mean leaving those most in need with nowhere to turn.

The sluggish economy and high unemployment rates have put enormous emotional stress and financial strain on many North Carolina families, and faith communities throughout the state are doing their best to respond to these needs with available resources. From my experience with statewide church organizations and other charitable nonprofits, I know that subjecting nonprofits to a new sales tax and eliminating incentives for individuals to make contributions will limit the ability of all of us to serve our local communities.

These are difficult times. We pray that our lawmakers and governor will demonstrate compassion for our fellow North Carolinians who need food, clothing, health care and shelter and for the many charitable nonprofit organizations that provide this support.

–The Rev. George Reed of Raleigh is executive director of the N.C. Council of Churches.

 

Filed Under: In the Media Tagged With: Children & Youth, Food, Good Government, Health, Religion & Society, State Budget, Taxes

About George Reed, Former Executive Director

As I had hoped, I have spent more time reading books in my retirement. One recent read was Jon Meacham’s splendid biography of Thomas Jefferson. I resonated with something TJ wrote in a letter shortly after leaving the White House in 1809: “I am here [at Monticello] enjoying the ineffable luxury of being owner of my own time.” I can’t say that I am complete owner of my time, but I am really enjoying not being controlled by clock and calendar. Well, except when there’s a deadline for Raleigh Report.

Reader Interactions

More Like This

Because of Jesus
The Perfect Gift for Mother’s Day
PHW Faith and Health Summit: Thank You

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Anonymous comments or comments that target individuals will not be posted (please include your first and last name). All comments must be on topic and respectful. Comments will not be posted until they have been reviewed by a moderator. Comments do not reflect the positions of the NC Council of Churches.

Footer

Contact

NC Council of Churches
27 Horne St.
Raleigh, NC 27607
(919) 828-6501
info@ncchurches.org

Facebook

Partners in Health and Wholeness

Featured

How NC Tax-reform Plans Could Fray Safety Nets

Latest Tweets

People of faith have the power to change the world. Join us and partner organizations for an important event on voting rights! #2022CriticalIssues bit.ly/3KZgi7z pic.twitter.com/ag75…

About 9 hours ago

Your Vote is Your Voice! Learn more about Democracy in Action on 5/27 with Blueprint NC’s Executive Director, Serena Sebring. We will hear about the political movement and how we can take action. Register for our #2022CriticalIssues at the link! bit.ly/3KZgi7z pic.twitter.com/CrMe…

About 2 days ago

Learn what’s at stake for North Carolinians and how our courts impact our daily lives on 5/25 with @NCVCE Director, Melissa Price Kromm. The U.S. courts play such an important role in our lives no matter what the issue. #2022CriticalIssues bit.ly/3KZgi7z pic.twitter.com/1z1v…

About 4 days ago

Since redistricting affects who is elected to governmental bodies, the decisions about boundaries also affect policies these bodies enact. Anyone who cares about the way laws affect communities should care about this. Learn more #2022CriticalIssues bit.ly/3KZgi7z @scsj pic.twitter.com/sls7…

Last week

Through the assistance of @CarterCenter, Jennifer Roberts & Bob Orr are assembling a cross-partisan network of respected North Carolinians advocating for adherence to democratic & civic values in NC elections. Learn more & register: bit.ly/3KZgi7z #2022CriticalIssues pic.twitter.com/dCTl…

About 2 weeks ago

Follow @ncchurches

Latest Tweets

RT @FaithCompassWFU Consider becoming an HIV & Faith Ambassador! To learn more, plan to join us for a virtual information session on 05/18 at 2 PM, 06/30 at 2 PM, or on 07/20 at 11 AM, all EST. Register now: bit.ly/FaithAmbInfo #faithandHIV #faithcompassWFU #transformthestory pic.twitter.com/oZo7…

Last week

Join us now Attorney General Josh Stein for a virtual conversation, “A Faith-Based harm Reduction Approach to the Opioid Crisis.” youtube.com/watch?v=…

About 2 weeks ago

RT @NCAGO Join Attorney General @JoshStein_ today at 1 p.m. for a discussion on a faith-based harm reduction approach to the opioid crisis with representatives of Olive Branch Ministries. Register here: us06web.zoom.us/webi… pic.twitter.com/XB05…

About 2 weeks ago

Register here! #phw #MentalHealthAwareness ncchurches.ourpowerb… pic.twitter.com/VTN7…

About 3 weeks ago

Please Join Us! ncchurches.ourpowerb… pic.twitter.com/KG6o…

About 3 weeks ago

Follow @healthandfaith

Latest Tweets

RT @mocleanair Read our editorial in @GeorgiaRecorder. georgiarecorder.com/… @EnergyFdn @GCVoters @cleanenergyorg @GeorgiaIPL @gasierraclub @CleanAirMoms_GA @PSEquityMatters @SouthfaceInst @GAChapterAAP @CEHN @docsforclimate @enviRN @schoolnurses @uwomenfaith @eldersclimate @NCIPL @AlabamaPJC

About 4 days ago

RT @mocleanair Comments due in 3 days - if you haven't submitted one yet, do it today! For tips, read our blog about the different kinds of air pollution heavy duty vehicles make. #HealthyAirIsHealthCare #CleanAir @CEHN @TheOxygenProj @eldersclimate @uwomenfaith @GeorgiaIPL @AlabamaPJC @NCIPL twitter.com/mocleana…

About 4 days ago

RT @WECAN_INTL 📢Today, Indigenous women leaders & 200+ groups sent a letter calling on @USACEHQ to deny the permits for Line 5, conduct a federal EIS & respect Indigenous rights! To protect communities, water & our climate we must #StopLine5. Learn more👉bit.ly/3MBazW4 pic.twitter.com/FqeQ…

About 4 days ago

RT @interfaithpower North Carolina congregations with @NCIPL are taking advantage of their utility's solar panel rebate program to save on their lighting and space heating and cooling costs. #Faiths4Climate #EarthWeek twitter.com/PNS_NC/s…

Last month

RT @scennetwork1 This past weekend, Alexander Easdale, our Executive Director, attended the Fight for Our Future rally in Washington D.C. to advocate for climate action! Read more about this event here and see if you can spot our SCEN T-shirts in one of the pictures: nytimes.com/2022/04/… pic.twitter.com/5voq…

Last month

Follow @ncipl

Latest Tweets

Copyright © 2022 NC Council of Churches · All Rights Reserved · Website by Tomatillo Design · Hosted by WP Engine