The James Hausman Tax Law and Policy Workshop Series
presents
Richard Schmalbeck
Duke University
Considering a New Category of Exemption for American Churches
Tuesday, March 1, 2011
4:10 – 6:00 PM
Solarium (room FA2), Falconer Hall
84 Queen’s Park
The U.S. tax law defining organizations that are eligible for treatment as charitable determines both the tax exemption of the organization and the deductibility for tax purposes of donations to the organization. Among the definitional conditions is an absolute ban on participation in political campaigns. While there are sound policy considerations supporting this ban on campaigning, it may operate to restrict inappropriately the expressive functions of some organizations. In particular, churches are organizations with unique interests in expression of their views. This paper offers and defends a simple solution to this situation by suggesting that churches be allowed to participate in campaigns, while denying deductions for contributions to churches. The author predicts with great confidence that this proposal will not be enacted anytime soon, but hopes that discussion of why this might be a promising idea will illuminate aspects of this problem that may lead to any of several part-way solutions suggested in the paper.
Richard Schmalbeck is Professor of Law at Duke University. He has also served as dean of the University of Illinois College of Law, and as a visiting professor on the University of Michigan and Northwestern University law faculties. His recent scholarly work has focused on issues involving non-profit organizations, and the federal estate and gift taxes. He has also served as an advisor to the Russian Federation in connection with its tax reform efforts. The second edition of his federal income tax casebook, co-authored with Lawrence Zelenak, was released by Aspen Publishers in 2007.
He graduated from the University of Chicago, and later from its Law School, where he served as associate editor of the University of Chicago Law Review. Prior to beginning his teaching career, he practiced tax law in Washington, D.C.
Refreshments will be served.
For more workshop information, please contact Nadia Gulezko at n.gulezko@utoronto.ca.
