H.R.227 - Clergy Act (119th Congress)
Summary
H.R. 227, the "Clergy Act," allows members of the clergy to revoke their exemption from Social Security coverage. This bill amends the Internal Revenue Code of 1986, providing a window for clergy members to opt into Social Security. The revocation would be effective for taxable years beginning after December 31, 2027.
Expected Effects
The primary effect is to grant clergy members greater flexibility in managing their Social Security coverage. This could lead to increased participation in Social Security among clergy. The bill also mandates a report to Congress on informing clergy of their eligibility to revoke their exemption.
Potential Benefits
- Provides clergy members with the option to receive Social Security benefits upon retirement or disability.
- Allows clergy to build a Social Security earnings record, potentially improving their financial security.
- Could increase the overall contributions to the Social Security system.
- Offers a second chance for those who initially opted out but now desire coverage.
- Mandates that the IRS and SSA develop a plan to inform clergy about this option.
Potential Disadvantages
- Some clergy may find the process of revoking their exemption and paying back taxes burdensome.
- The requirement to pay back taxes for the year the revocation becomes effective could create a financial strain.
- Increased participation in Social Security could place additional strain on the system's resources in the long term.
- Some religious organizations may have concerns about the implications for their members.
- The bill might create confusion among clergy members who are already exempt.
Constitutional Alignment
The bill appears to align with the Constitution, particularly regarding religious freedom under the First Amendment. By allowing clergy to opt into Social Security, the bill avoids compelling participation, thus respecting the free exercise of religion. The bill does not establish a religion, nor does it prohibit the free exercise thereof.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).