Now they say the IRS has targeted Tea Party groups trying to set up as non-profit organizations, technically known as 501(c)3 organizations after the IRS chapter/verse that defines them. They want to get the IRS out of politics.
I say fair enough. Why don't we take it a step farther and get politics out of 501(c)3's? Did you know there are one million non-profit organizations on file with the gubment? And that doesn't count the other half million with revenues of $25,000 or less that aren't required to jump through all the hoops. And none, of course, pay taxes.
This all sounds like one giant tax dodge to me. Sure, I can see the Cancer Society, Heart Association, food banks, etc. as legitimate non-profit organizations doing work for the public good. But the Tea Party? Or MoveOn.org? If some rich guy wants to contribute to a political group, fine with me, but don't ask me to subsidize his
I say we need to severely tighten up the IRS definition of "non-profit". In too many cases it's little more than a legal tax avoidance scam. I could live like "The Donald" if I had just a fraction of what the IRS leaves on the table.
Put me in charge for a few months and I promise our tax coffers will soon be overflowing. (Well....less low.) And there will be a lot of formerly highly paid non-profit CEO's crying in their domestic beers.
S
It is all apparently very complicated (it's the IRS Duh!) The political org.s are tax exempt, but the donations they recieve are not legal exemptions for the donors. The IRS pin pointed these orgs and made sure they were what they said and donors did not claim exemptions. That is all fair, except they seemed to only check the right leaning orgs., never the left tilted orgs. Kinda like only pulling over only black drivers with minor violations to check for drugs. At least that is how I read it, but this is another reason to somehow simplify the laws, to make abuse by everyone more difficult. Big question is HOW?
ReplyDeleteInteresting info Joe. Stuff there I didn't know. Still, why should ANY political org get tax-free status? Their reason for existing is simply to promote their goals for THEIR constituents, NOT the public at large. Same with industry trade groups: They exist to promote policies that will benefit THEIR industry, not necessarily the public at large. I say let those who will benefit pay for their own organizations (including paying taxes) without getting a free ride from ALL taxpayers, many of whom would actually be harmed by policies benefiting a few.
DeleteAnd you're right....HOW? Those already entrenched are NOT going to give up their special favors without a fight.
That's a good idea. They don't have a real commissioner right now at the IRS so pretty much the job is open. While we're at it it would be nice to get rid of tax-exempt status for "churches" like the Westboro Baptist people too; they should be reclassified as a terrorist organization.
ReplyDeleteOpened my eyes during the last election cycle when Gingrich Enterprises was shown to have several of the 501c's and was dipping into all of them for personal use, and one even buying the books he was hawking on the other. IIRC he had a $1,000,000 line of credit at Tiffanys. Those are his and his wife's conservative values. Argggghh
ReplyDeleteIt used to be so much simpler when crooked pols in D.C. were limited to selling free postage stamps.
You couldn't possibly do worse than the bozos in charge here. I do believe these tax exemptions for so-called non-profit groups are out of control.
ReplyDeleteThe problem is not tax exemptions.... the problem is the IRS. Abolish the IRS and you don't have any tax exemptions. What I earn should be tax exempt. It is mine not [the+irs=theirs]!
ReplyDelete