Taxing Faith: Halo Effect and the Implications of Taxing Canadian Places of Worship

Abstract

In Canada, the social, spiritual and communal value of local worshipping congregations has long been accepted. The value that Canadians place on these organizations is reflected in their charitable status and the tax-free benefits this affords. But with increasing costs, and governments at all levels needing to mine new sources of revenue, there is increasing pressure from some segments of Canadian society to reduce or eliminate this charitable status. Drawing on data from the Halo Canada project, the author puts forward a socio-economic case for maintaining the charitable status of places of worship, suggesting that the socio-economic or Halo Effect of congregations outweighs the benefits of government taxation by more than ten times.