German churches say banks tell people to quit faith

It is not everyday that we have the opportunity to report on two of our most cherished institutions in the same post.

German churches are complaining that banks are telling their customers to leave the church in order to avoid church taxes levied on capital gains or securities income.

Regular readers of this publication know that the Christian churches (both Catholic and Protestant) in Germany have been enjoying a tax sweetheart deal for, well, "many" decades.
You might expect the government to tell the churches to collect the dues themselves, especially in times of public deficits and with the aim to get rid of treating some faiths better than others.

But, well, see for yourself.

The way it worked until now:
Employees have to tell their employers if they are members of the church. Employers then take the 8 or 9 percent of church taxes out of their paycheck, and the government sends that money to the churches.

The way it will work starting in 2015:
The existing withholding was applied to wages and salaries. The church tax is also owed on interest and capital gains but citizens had to report and pay this portion separately when they filed their annual tax return.
A change in the law forces banks and investment institutions to withhold the church taxes at the source.
Banks have been sending out letters to their customers informing them of the change.

Church treasurers have a problem with these letters, specifically a short statement that says this withholding will not be effected if you are not a member of the Catholic or Protestant church.

What looks like a simple statement to us is seen by high-ranking church officials as an incitement to quit the church.
Yes, indeed, the faith of some church officials in their sheep, or sheeples, has hit a new low in the face of rising numbers of people quitting the churches.

The officials do not give names of banks, which is a shame because I'd bet that Susan B. Anthony dollar (see other posts for details) that small, local banks are the ones spelling out the law. The big boys, not known for treating customers well in the first place, probably run such info letters by their lawyers, who'd nix a harmless 'if you are not a member of the church, you do not face the withholding'.

So, for once I feel for the banks - at least until my next monthly statement with ridiculous service fees.