Tax-Exempt businesses?

Question

Why are churches exempt from taxes when other businesses aren't. Religion is part of the service industry, is it not?

Answer 1

The only church businesses that are exempt from taxation are those serving a charitable purpose.

Goodwill is tax exempt, for instance, but a business which publishes bibles would not be, since that is a profit making enterprise

Answer 2

The theory is that churches (and all other houses of worship and religious organizations) should be exempt from taxes because they provide a service that the government provides in other countries.  Charities in general help pay for health care, help feed the hungry, etc., etc.  To the extent that churches and other non-profits provide charitable assistance where the government would otherwise have to, they are providing a service in lieu of government.  

Thus, churches and other charitable organizations are not just other service industries; they are industries that act in support of government.