Taxing churches

Gerald Russello is concerned (here) that "to tax churches is to muzzle religion."  (I explored this and related concerns a few years ago in this law-review article.)  A taste:

[T]he existence of churches and their ability to freely practice their faith — including calling politicians to live that faith — exist apart from, and prior to, state power. If taxation is one way for the state to limit and restrict churches to fulfill their mission, and so is limited, the threat of removing tax-exempt status can be used to the same effect. In any event, why can’t churches promote political positions? Involvement of religious organizations with public causes — such as those against slavery or in support of the temperance movement — are a firm part of American history. The evolution of the IRS rules has become another example of a secular culture hostile to the religious traditions of the nation.

For a detailed study of the IRS rules regarding political activity by charitable organizations, and an analysis of these rules in light of the First Amendment and religious-liberty-protecting statutes, see this paper by my colleague, Lloyd Mayer.