Saturday, November 8, 2008

Nonprofits Abusing Their Tax-Exempt Status

Certain large and (inappropriately) politically-ambitious nonprofits overtly supported Proposition 8, abusing their special tax status to do so - my thoughts as a Libertarian on Prop 8's passage are here. What can we do about it? You can, like I did, and like this person did, and like thousands of other people are doing, file an IRS complaint. Guidelines are here. It took me all of 10 minutes.

If you have any hesitation, be reminded of the words of the immortal George Carlin: "Tax 'em! Tax the motherf***ers!"


Mike said...

Why should anyone/anything have tax exempt status?

Using tax policy to influence social policy needs to stop.

Thomas Paine Jr. said...

The rule of law in any nation is a transparent system of carrots and sticks used to influence, reward, and punish behavior. Why is tax policy not a valid or effective way to reward or punish individual or group behavior - for example, property ownership creates wealth, so a tax policy that encourages property ownership (as ours does) is good. Consequently I disagree with your second statement.

I think a better argument can be made in favor of your first point
that maybe a flat-out tax exemption for certain classes of organizations invites gaming the system.