By: Derek Hawkins//April 15, 2019//
7th Circuit Court of Appeals
Case Name: Annie Laurie Gaylor, et al. v. Steven T. Mnuchin, et al.
Case No.: 18-1277; 18-1280
Officials: BAUER, MANION, and BRENNAN, Circuit Judges.
Focus: Statutory Interpretation – Establishment Clause
Since the Founders crafted the Religion Clauses of the First Amendment, courts have grappled with the “play in the joints” between them. Walz v. Tax Comm. of City of N.Y., 397 U.S. 664, 669 (1970). This case calls us to do so once more. Freedom From Religion Foundation (“FFRF”) claims that a longstanding tax code exemption for religious housing, 26 U.S.C. § 107(2) of the Internal Revenue Code, violates the Establishment Clause. The district court agreed. The U.S. Treasury Department and several intervening religious organizations ask us to reinstate the exemption, asserting that the survival of many congregations hangs in the balance. We must decide whether excluding housing allowances from ministers’ taxable income is a law “respecting an establishment of religion” in violation of the First Amendment.
Reversed