Do The Amish Pay Taxes?
Do the Amish pay taxes?
Just like the rest of us, the Amish are not exempt from life’s two certainties
– death and taxes. However, there is a reason behind the persistent myth
that the Amish do not pay taxes. The Amish live within self-sufficient
communities and do not collect Social Security, unemployment, or
welfare benefits. According to their religious beliefs, paying Social Security,
an insurance premium for the elderly, is tantamount to not “taking care
of their own.” Amish people who are self-employed are not obliged to pay
Social Security tax, but they do still pay all other taxes, including property,
income, and sales tax. If an Amish person decides to work outside
of the community, he or she must also pay Social Security tax
like any other American.
In 1955, the IRS extended the Social Security Act of 1935 to include
farm operators. At the time, some Amish people immediately complied
with the tax, while others conscientiously objected to it. Many felt that it
violated the separation of church and state, some did not want to
accept monies for government programs, and still others believed that
paying a commercial insurance for the elderly went against
their trust in God to take care of them.
The IRS and the Amish played a convoluted shell game for close to a
decade, until it all came to a head with the seizure of a struggling farmer’s
horses in 1961. The Amish elders stuck firmly by their principles, and the
ensuing media and community outrage over the incident led the IRS to
relent four years later. Tucked away in the 1965 Medicare Bill was a clause
exempting the “Old Order Amish” and other religious groups that
conscientiously objected to paying insurance premiums from Social Security tax. To
be exempt, the group or sect must have been established prior to 1950 and
maintain reasonable provisions for their elderly.
