Joe Carter at The Gospel Coalition writes: “A federal judge has ruled that an Internal Revenue Service exemption that gives clergy tax-free housing allowances is unconstitutional. According to Religion News Service, the exemption applies to an estimated 44,000 ministers, priests, rabbis, imams and others. If the ruling stands, some clergy members could experience an estimated 5 to 10 percent cut in take-home pay…U.S. District Court Judge Barbara Crabb ruled on Friday (Nov. 22) in favor of the Freedom From Religion Foundation, saying the exemption violates the establishment clause because it ‘provides a benefit to religious persons and no one else, even though doing so is not necessary to alleviate a special burden on religious exercise.'”

It’s important to note that the federal judge issued a stay of her ruling until the appeals process plays out. So for now nothing will change and no pastor or church will be affected. However, the efforts to strip this protection for pastors and churches has continued with this latest ruling. Here’s why it’s important:

Without this tax protection many churches will not be able to afford a pastor due to the size of their congregation. This tax protection allows the church to provide a house (parsonage) or tax credit for the pastor’s housing expenses as part of his compensation without it being taxed. This allows the pastor at a small church to “take home” more pay because he does not have to pay taxes on it. The obvious benefit here is that the pastor is able to live on less because a portion of his income is not subject to taxation.

Without this benefit many small churches will be unable to afford a pastor and risk closing without a qualified, educated pastor leading the church. Lest anyone think this shows a “government favor” of religion consider that this exemption is applied to any church of any faith. The number of churches and congregations that would be affected is therefore substantial. But there is a greater risk here as well.

If the government finds cause to strip the pastor’s housing exemption and force pastors to pay taxes on their entire income, it is only a matter of time before churches themselves are stripped of their tax exempt status.

The reasoning that would cause a federal judge to remove the housing allowance exemption can easily be applied to the church tax exempt status and removing that status is the next logical step. This once again shows just how hostile to religion, and people of faith our culture is. President Obama has led the effort to marginalize people of faith and paved the way for such hostility to believers.

As the above mentioned article explains, this exemption was put in place to help churches, which in turn serve their communities and provide valuable services. The exemption was a way to ensure these churches, often small churches in rural settings, are able to continue serving their community through the leadership of a pastor. Declaring this exemption unconstitutional is nothing more than open hostility to churches.

This is certainly a case to be watched and prayed over. While the Supreme Court has repeatedly upheld the provisions given to pastors and churches in the area of taxes, including the housing allowance exemption, there is no guarantee that the court will continue to do so. Recent rulings by SCOTUS have left everyone scratching their heads wondering just how the court will rule on the next big case.

This should be a clarion call for pastors and churches that have to this point been silent and refused to speak against these actions. Perhaps if more pastors and churches became vocal the atheist organizations currently doing the talking would be silenced.