Online Casino Industry Eyes IRS-Church Dispute
A Minnesota preacher whose political stands during sermons drew IRS attention is now bringing larger questions to the national debate. The minister says the IRS clause disallowing political involvement by tax-exempt organizations violates his constitutional rights, but members of the online casino industry are wondering how churches can campaign against them without paying taxes.
Reverend Gus Booth of Warroad Community Church in Minnesota says he's disappointed in the suspension of the IRS investigation into his support of John McCain in last year's Presidential election. He thinks the portion of the tax code that forbids political advocacy by non-profit, tax-exempt groups violates First Amendment Rights.
But online casino operators say they want to pay taxes, and these groups already enjoying free-ride status then push congregants to vote for candidates opposing online gambling. As long as the Internal Revenue Code remains as is, says Online Casino Advisory gaming analyst Sherman Bradley, church groups such as Focus on the Family should either start paying their share of taxes, or quit telling other US residents what they should do in the voting booth.
"Online casino industry members and patrons want to know what happened to their First Amendment rights, prohibiting the establishment of a religion," says Bradley. "Isn't tax exemption an unfair and unconstitutional status favoring religion? Perhaps these hypocrites would like to contribute the billions they cost the US by denying regulation to the Internet gambling field."
Booth asserts that the Bill of Rights should have sway over the tax code. If he's right, says Bradley, then the First Amendment should force churches to pay taxes; if he's wrong, then the tax code rule should keep religious leaders from blocking online casinos from paying revenue, so that at least some body pays.
