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Some of you guys are funny! Paul people are the best at studying the facts but some didn't on this one. So many think the pastors don't pay taxes. Pastors and all employees of the church pay taxes like everyone else on their income. It is the church and the expenses to run it that are not taxed. Just say the church brings in 10k in a month and the pastors salary is 2k. He is taxed on that and the 8k may go to the building/loan payment, programs for children, helping the needy, utility bills, etc...the 8k isn't taxed. If the pastor is living high on the hog it's because the people are giving it and his salary is very high, but he is taxed on it.

The church itself is considered a non-profit organization like many other things are. Even a satanic church gets the same tax exemption! Look up the list of non-profit organizations there are, the churches are only one of hundreds.