9th Circuit considers tax deductions for religious education

In 1993, the IRS entered into a secret settlement with the church of Scientology that allows members of the church to deduct at least 80% of the costs of the fees paid for religious training and services.  Now a Jewish couple is arguing in court that the Constitution forbids the IRS from treating other religions unequally and it must be compelled to release the terms of the Scientology settlement.  The How Appealing blog links to several articles that discuss and link to a recording of Monday’s oral arguments at the 9th Circuit.

Josh Gerstein of the New York Sun provides these tidbits from the arguments:

"The view of the IRS is it can unconstitutionally violate the Constitution by establishing religion, by treating one religion more favorably than other religions in terms of what is allowed as deductions, and there can never be any judicial review of that?" Judge Kim Wardlaw asked at the court session Monday in Pasadena, Calif.

"That is not at all what I said," a Justice Department lawyer representing the IRS, Ellen Delsole, said.

"That’s the bottom line," Judge Wardlaw and a colleague on the panel, Harry Pregerson, both replied. "This does intrude into the Establishment Clause," Judge Wardlaw added.