Housing vs. The IRS

[Jolly]

Mentioned teacher housing in another thread, which caused another thought...You don't see many church parsonages nowadays. They used to be very common. It was a way for smaller churches with less means, to recruit and keep a pastor, even though they couldn't pay higher salaries.

That died when the IRS decided to tax housing. It would also be an impediment to a teacher housing program, at K-12 or even university levels.

Is it time to change the tax code back to the way it used to be? At least for some classes of employees?

[Axtremus]

@Jolly said in Housing vs. The IRS:

Is it time to change the tax code back to the way it used to be? At least for some classes of employees?

I don't like the idea of the government creating yet more "special classes" of employees; if anything, I'd rather eliminate/reduce "special classes" than to add more of them.

It also does not appear consistent with your own view that "education" is a state matter, not a federal matter. (But if you don't think that's the case, please feel free to tell me why.)

[Jolly]

Education is a state matter, but the taxation occurs on a Federal level.

[jon-nyc]

I would not be in favor of exempting new classes of compensation from taxation.

[Jolly]

Well, I'm spitballing...How else would you attract and hold teachers without paying more than many districts can afford?

[Axtremus]

@Jolly said in Housing vs. The IRS:

Education is a state matter, but the taxation occurs on a Federal level.

But inviting the IRS (a federal agency) to specifically target “education” (a state matter) personnel, you are inviting the federal government to extent its tentacles into a state matter, no?

[Jolly]

@Axtremus said in Housing vs. The IRS:

@Jolly said in Housing vs. The IRS:

Education is a state matter, but the taxation occurs on a Federal level.

But inviting the IRS (a federal agency) to specifically target “education” (a state matter) personnel, you are inviting the federal government to extent its tentacles into a state matter, no?

I don't think so, unless we revert back to the CSA Constitution or declare federal income tax unconstitutional.

[Mik]

Federal giveaways of monies they probably should not have had in the first place are where we get into trouble. If the tax break for teacher, etc. housing is evenly applied across the nation there is no real danger.