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Lorella Di Vuono

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Tax Exemption at Sea for the Vatican

Posted: 03/09/11 16:00 BST

In Italy the last tax maneuver (45 billion euro) announced by the Berlusconi's government to deal with the economic crisis has revived the old controversy about tax exemption of ecclesiastical bodies. The dispute between State and Church concerning the municipal property tax (ICI) lasts for many years. According to the latest amendment passed by the Prodi's government in 2006, today in Italy all Vatican property for purposes "not exclusively commercial" are excluded from taxation. The buildings of the Italian Church are not certain. Some people speak of a billion square feet, others of 100 million. To date, a census has not yet been done and the properties of the Vatican remain one of the secrets held by the "Bel Paese."

The Radical Party (part of the opposition) has tabled an amendment that, if approved, would force the Church to pay the municipal tax on buildings not intended for purposes of worship. Thus, the Vatican would be deprived of the tax exemption for all the buildings used, for example, for health purposes, educational and touristic. A privilege estimated between 400 and 700 million euro each year, according to an analysis (really prudent) of the Italian municipalities. But if the amendment is approved, an entire system of privileges could be called into question. In addition to the exemption by ICI, the Church has, in fact, a series of state grants on which Brussels is already investigating and that could cost Rome a conviction for state aid.

The Italian Church is shouting at the plot. The bishops' newspaper (Avvenire) denies the accusers and asserts that the only real urgency, for Italian economy, is to fight against tax evaders (yes, but what?). Meanwhile, on Facebook has begun collecting signatures in support of the amendment proposed by the Radical Party. However, the Vatican knows it can count on the aid of much of the political, majority and opposition.

The controversy is open and the conclusion is certainly not obvious. Regardless of the outcome of the vote in Parliament, I believe that an act of transparency from the Vatican is due. A census of church property and assets would help to clarify the issue, dissolving the reasonable doubt that was born even in the hearts of the most devouts. Provided that internal revenue for the Vatican is not a matter of faith.

 
 
 
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HUFFPOST SUPER USER
Edward Wilkes
Poet/Stage Actor
12:23 PM on 09/07/2011
Tax all man-made religion. The bible says give the tax man his dues, to pay what is required. If the bible teaches this than why are those doing the teaching think they have the right to be exempt?
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David MacWilliams
My micro-bio is no longer empty...
12:13 PM on 09/07/2011
Churches are businesses that are selling a service. Therefore, they should share the same tax burden that the rest of us do. It is, after all, only fair. For them not to pay taxes constitutes a lack of separation between church and state which is unconstitutional.
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psnyder325
Yep, I'm a Socialist. Deal.
02:35 PM on 09/05/2011
In America, the State has absolutely NO business subsidizing religion. Regardless of the howls of the superstitious, there is a strong wall here that is to be erected between Church and State. The only guarantees the Church should have is that it won't be persecuted. But taxing the church for the use of city property, and taxing them on the revenues they bring in like any other business is NOT persecution, tho' the Christians will see it that way. Christians tend to see EVERYTHING as persecution that does not give them their privileged, medieval position of power and undue influence. But the rest of us don't have to buy the Church's narrative. Tax 'em.
09:42 PM on 09/05/2011
It appears fairly clear under U.S. law that churches can and are taxed on non-charitable business ventures. This is what we call separation of church and state. In Italy, the government supports the Catholic Church, even allowing religious symbols, such as a crucifix in schools. Many European countries have state supported churches, for example, Sweden and Finland both impose a tax to support the Lutheran Church. As a U.S. citizen, I have grown to prefer the separation of church and state defined by the U.S. Constitution, but other nations certainly have the right to adopt their own laws. For example, in Germany abortion is unconstitutional and illegal. I am aware that some other nations adopt laws that support one religion even to the point of infringing on individual freedom of conscience. Certainly, I would urge those nations to change their policies, but as sovereign states, we should not and cannot interfere.
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charlesrfd2003
Proud American who believes in the Bill of Rights
11:32 PM on 09/04/2011
I hope the Italians do a complete inventory. It is long overdue. Frankly, the Holy See as a sovereign state is an anachronism. Some transparency would help everyone.
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owlafaye
Love, laugh, be happy and free, God is dead
09:48 PM on 09/04/2011
If only the American Constitution and Bill of Rights had clarified this tax matter to reflect buildings and places intended for worship only, would not be taxed.

We need to pass laws to get these abusers and criminals to pay taxes like everyone else.
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Holly Smoke
Humor is the best defense for absurdity.
03:32 AM on 09/04/2011
"Render what is Caesar to Caesar, render to God what is God( which is NOT money)."
ThinkCreeps
Seriously, it's time.
03:14 AM on 09/04/2011
`Fight the evaders!' say the bishops. Chaps in hats - surely you're evaders too in the eyes of your god - you just have a silly letter from mere men saying you can evade taxes. Would jesus want you to help your country's needy, or to buy more nice red boots?
12:14 AM on 09/04/2011
A levy on Church property to be used for maintenance on historic Christian structures would be beneficial to all concerned.
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charlesrfd2003
Proud American who believes in the Bill of Rights
11:38 PM on 09/04/2011
Good point! Also, the Church should get out of the museum business and let the state or historical trust take over building that are not really used by the Church. Here in California, some of the missions hurt in an earthquake remain unrepaired due to the cost. It would better if the Church let the state take the Church and build a more modern building for use. I suspect that the same is true in Rome where I understand many churches are hardly used.
03:00 AM on 09/05/2011
A good point, but the Italian government already subsidizes the maintenance of church buildings across Italy. Instead of levying a tax to let the subsidy continue, the simplest move is to eliminate the subsidy and have the Church maintain its own buildings.
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01:20 PM on 09/05/2011
But...that would be ...logical ! Since when has the Italian bureaucracy been logical? They would rather be involved in the handling and passing out of money - graft and corruption and processing fees included - and the stamping and approving of applications to get the subsidy monies. Not to mention inspection and approvals of ongoing work. Havng a new tax just amplifies the bureaucratic possibilities...