Problems: The Bethel Family and Social Security Tax Exemption

by daniel-p 30 Replies latest jw friends

  • daniel-p
    daniel-p

    So I happened to be reading a website about the Amish, and I came across this:

    "Do the Amish pay taxes?"

    "Self-employed Amish do not pay Social Security tax. Those employed by non-Amish employers do pay Social Security tax. The Amish do pay real estate, state and federal income taxes, county taxes, sales tax, etc.

    The Amish do not collect Social Security benefits, nor would they collect unemployment or welfare funds. Self sufficiency is the Amish community's answer to government aid programs. Section 310 of the Medicare section of the Social Security act has a sub-section that permits individuals to apply for exemption from the self-employment tax if he is a member of a religious body that is conscientiously opposed to social security benefits but that makes reasonable provision of taking care of their own elderly or dependent members. The Amish have a long history of taking care of their own members. They do not have retirement communities or nursing homes; in most cases, each family takes care of their own, and the Amish community gives assistance as needed."

    Now, I'm sure that the Society has already exploited the use of this exemption for its Bethelites. In fact, I know they have, since I remember signing a form that designated me as living under a "vow of poverty" as a member of a religious order, and would no longer pay any taxes, nor be contributing to SSI. This form can be found here: http://www.irs.ustreas.gov/pub/irs-pdf/f4029.pdf

    If you look at the form, on page two it requires the SSI admin person to check a box that says: "This religious group is recognized as being in existence continuously since December 31, 1950, as providing a reasonable level of living for its dependent members, and as being conscientiously opposed to public or private insurance."

    I see two problems with this. First, what constitutes a "reasonable level of living for its dependent members"? Finding out that they have a minor or major health condition and kicking them out of the Bethel home? I suppose that by eliminating that person as a member of the Bethel family they don't have to demonstrate that they're taking care of them. But that doesn't really make sense, either. How would it look from a legal perspective if an Amish community expelled elderly or sickly members, no longer took care of them, and still expected to be designated as a "religious group that provides a reasonable level of living for its dependent members"?

    Second, how does the Society demonstrate that it is "conscientously opposed" to public or private insurance? The Amish do so because they have an extremely tight-knit community and to rely on insurers of any kind would be to, in their minds, turn their back on their community and not trust that God and their community will care for them. The Society, on the other hand, carries no such doctrine on insurance. To say that the Society is somehow "conscientously opposed" to public or private insurance is laughable, when speaking of either the religion at large, or whatever legal entity they use for the Bethel family.

  • JeffT
    JeffT

    I'm an accountant, but it is a bit too late to look at this tonight. Sometime in the next day or two I'll do some rooting around in the IRS website and report back. At first glance it looks like you have a good point, but I have to think that the smart lawyers have found a loophole, there certainly are enough of them.

  • Gayle
    Gayle

    daniel-p,,when did they start doing that for Bethelites,,I was there '69-'74 and they didn't do that form then,,Bethel did make a payment to "social security" then.

  • daniel-p
    daniel-p

    Gayle, I'm not sure when they started exempting themselves from SSI payments.

  • JWoods
    JWoods

    I don't see how the JW could possibly claim they have any religious objection to Social Security tax...for just the Bethelites, Circuit Overseers, and such - ???

    What about everybody else of the rank & file?

  • Cadellin
    Cadellin

    Okay, this is perplexing. I personally know of a case of a couple who were given their pink slip from Patterson, and then one of them got grievously (terminally) ill and, though the Society did pay for a portion (and I don't know what percentage but I suspect not terribly much) of their med expenses after they left, they were specifically instructed by the Society to register for Medicaid as soon as possible.

    So wouldn't that be blatant hypocrisy? And we would never expect to see blatant hypocrisy from the WT....

    I'd be interested in what Jeff can find.

  • Mickey mouse
    Mickey mouse

    On another thread LWT said he signed the form when he was at Beth-hell and the society made no social security contributions for him.

  • OnTheWayOut
    OnTheWayOut

    I wouldn't trust the WTS to care for their own people's medical/retirement needs unless there was an ironclad agreement when they joined.

    A young person would need a contract with WTS that also goes to the government before becoming a Bethel Family member. The contract would need to outline how much of a contribution WTS would make for this person so that WTS doesn't just simply terminate their "volunteer" status before they are on the hook.

    WTS should agree to contribute so much money per year toward each member's care.

  • Gayle
    Gayle

    I put this on another thread last night but will put here also.

    I will have to try to get my son help me to do a copy and paste somehow to this site, a copy part of my "Your Social Security Statement" that shows individual years of "Your Earnings Record". I went in mid-1969 so I had earnings for part of that year before for Bethel. But under "Your Taxed Social Security Earnings": shows: 1970 - $837, 1971 - $901, 1972 - $968, 1973 - $953.

    The Treasurer's office took care of our taxes and we had to sign a form that any IRS mailed to us, we authorized the Treasurer's Office to open and to handle, we never got copies. These amounts were the total of our $14/mo, maybe some subway tokens value, an annual clothing allowance of $100, and the rest was for the value of room and board.

    So on this, Social Security, uses the term "Earnings".

  • Mickey mouse
    Mickey mouse

    Related thread

    It was at least 1994 when the vow of poverty thing came in, maybe earlier.

    They do a similar thing in the UK.

    Perhaps this caught up with them in Spain?

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