Freedom from Religion Foundation files suit to end tax break for ministers

A nationwide atheist group is asking religious leaders to take Jesus' advice and render unto Caesar what is Caesar's — especially when it comes to taking the federal tax break on their housing.

The Wisconsin-based Freedom from Religion Foundation says the housing exemption gives churches an unfair advantage because they can compensate their leaders with tax-free housing. Other nonprofits, such as the foundation, can't do that. So it's suing the federal government to outlaw the housing allowance.

"We think the law is rotten at the core," said co-president Annie Laurie Gaylor. "It is not constitutional, it is not fair, and it is not necessary."

But the exemption's supporters point to a similar court dispute in 2002 that went nowhere after Congress almost unanimously rushed to save the housing break.