Written by Don Byrd
Late last year, a federal judge in Wisconsin surprised many by ruling unconstitutional the IRS regulation granting ministers a tax exemption for income designated as a housing allowance. The tax is unlawful, she argued, because it allows clergy a benefit not offered to others. Many disagreed, including the Baptist Joint Committee’s Brent Walker, who said the exemption is an expression of neutrality within the government’s discretion under the First Amendment.
Yesterday, the 7th Circuit heard oral arguments in the government’s appeal of the judge’s decision. Courthouse News Service reports much of the focus was on the issue of standing – whether the plaintiffs as taxpayers could bring the suit in the first place.
In a discussion of standing, Justice Department attorney Judith Hagley said that the plaintiffs cannot challenge a tax benefit that has not been personally denied to them, as opposed to being only generally unavailable.
“Taxpayers do not have standing to litigate others’ tax liability,” Hagley said.
