Posted by:
rowan
(
)
Date: January 16, 2012 07:53AM
Social Security is a form of insurance, just like state or personal disability, and unemployment benefits. Just because it comes from the government does not make it income. It is a insured benefits program that you and/or your employer pays the premium on.
Quick rule of thumb: If you pay a premium on after-tax dollars, then the benefits of that (policy or program) are not taxable.
If you pay a premium on before-tax dollars, then the benefits are taxable. Think IRA. If you paid tithing on on that amount that you put into an IRA or other investment program, then only the amount that is growth is to be tithed on, while the whole amount is taxable.
Understand this, just because something is taxable does not mean it is titheable. I have heard Bishops use that as a rule of thumb--they are INCORRECT!
Would you pay tithing on the insurance settlement check for a surgery or hospital stay, on damage to your house or car? No, of course not!
Any of you who are still in the church and on this site...stop and think.
Tithing is suppose to be on your gain, isn't that right. The death of a parent is a loss, and you inherit an estate...for all intents and purposes that is not a gain, because you lost something (a parent) which has more worth than any amount of money you received from their death.
Now the state/federal may tax you, but that is a "transfer of ownership" tax. Just because you get taxed, does not qualify money as a gain. An inheritance tax is not a capital gains tax, is not an income tax.
Now, think about this, those Mormons who own a business, do you think that they pay tithing on all the money that business takes in. The business gross vs the business net? No, of course not. They deduct any business expense, overhead, taxes etc. before they can know what their gain is. You should treat your income just like the income of a business. It is the same thing. How much do you spend for every dollar that you bring home? It takes money to make money! Gas, auto expense, travel expense, clothes that you bought for work, the extra expense of eating away from home. All of that and more is your business expense, your overhead. That part of your water bill, laundry detergents and electricity that you use to wash your working cloths should be pro-rated to be deducted from your net income before your calculate the 10%. You should pro-rate any expense necessary (what percentage of your mileage or fuel, upkeep, repairs and car payment qualifies as work related?)
If those who pay tithing really tithed only on their gain, then the church would not be raking in all that tax-free overpayment (to them) money that they get. Remember that you should be paying them with after-tax and after expenses dollars. If you want to tithe, make it a correct amount. It is 10% of your net income, after overhead and expenses.
When the Bishop asks if you have paid a full tithing...the answer is , "Yes." No argument, no discussion.