Much has been written in this blog about non-profits. For instance, how some of them are legitimate serving a cause; how others are fronts for very highly paid “Executive Directors” and that is about all; how others serve primarily as political platforms for wanna-be politicians. Also, how many of them seem to be dependent upon government contracts and funds for their very existence.
Well, now some governments are looking at non profits, generally tax exempt from income taxes and property taxes, as not paying their fair share for government support such as police, fire, street lighting and public education and moving to begin taxing them.
The New York Times reports that across the country an increasing number of states and local governments are considering the elimination of non-profit tax exemptions. A bill pending in Hawaii would require non-profits to pay a 1 percent tax. Kansas may make non-profits subject to sales tax. Some counties are considering revoking the exemption of non-profits from property tax in Kansas and Pennsylvania. Minneapolis recently made non-profits subject to fees charged for street lighting.
Large amounts of land and buildings, some extravagant and worth a lot of money and tax free, are owned by non-profits in California. Hundreds of millions of dollars are earned tax free every year by non-profits. Non-profits compete against for profit companies in bidding for government contracts, and of course their tax exempt basis gives them an advantage in any such competition.
Perhaps it is time to level the playing field and tax non-profits just like the rest of us.
They wuld rather tax non-profits than tax the Wall St. crooks living on taxpayer TARP money, or oil companies, or millionaires.
http://www.theblockradio.com/2010/02/the-mccourts-divorce-reveals-shady-tax-avoidance/
From The LA Times…
To everyone who claims that our wealthiest citizens pay more than their fair share of income taxes and we should cut them a break because they’re the ones who, you know, create jobs in our economy, I have four words for you:
Frank and Jamie McCourt.
The McCourts, who own the Los Angeles Dodgers (so she says; he says he’s the owner and she’s not), jointly pocketed income totaling $108 million from 2004 through 2009, according to documents Jamie McCourt recently filed in the couple’s divorce case in Los Angeles County Superior Court.
On that sum, they paid zero federal and state income tax