No they should not. This country was founded on the principle of religious freedom, and taxing a church would impose on that.

I have read a stat that says 70% of churches in the United States have 100 members or fewer, but 70% of church goers attend churches of 250 members or more. Which is why we have so called mega churches. Taxing the smaller church would in fact probably cause it to close its doors because of simply not being able to pay all of its bills.

There is also another interesting fact about churches. Churches do not have to abide by the ADA. This is because if a church is a home church then the government would require that home owner to become ADA compliant to house a church in their home. However, if the church is not a home church and meets in a building serving the community, when it is able it usually is ADA compliant as to serve the entire community they are located in.

2nd of all, a church is not a "for profit" business (I know that there are exceptions to the rule, with businesses posing as a church). How can you tax something that does not make profits. Sure some churches have a savings account that may or may not be flush with "cash", however, in my over 30 years of church experience this is used for benevolence within the church and community and for any maintenance for the building and property. Though we do get discounts from businesses that we hire to do some of the maintenance, it is not because we expect it or ask for it. We are glad to support our local businesses and pay a fair price.

Pastors, however receive a couple of perks on a personal level. One being a housing allowance that is tax free (that allowance is established by the church. It is only tax free on actual housing expense, and any repairs made based on the housing limit established by the church). Secondly, the pastor if he files with the IRS, he may opt out of Social Security on all salary earned in ministry only. This is a double edged sword, yes he has lower taxes, but ministry salary can not be used to figure Social Security (and who's to say that it will be there for when I get there in 15 years).

So returning to the question presented by the OP, no the church should not be taxed.