I’m asking about this section of U.S. Code specifically:
https://www.law.cornell.edu/uscode/text/26/subtitle-A/chapter-1/subchapter-F
Sometimes, but like most things in the US tax laws are often abused and misused. A simpler tax system would benefit everyone more (with the exception of tax accountants, of course), but that’s not likely to happen.
Tax accountants and their largest clients.
People like Bill Gates or Oprah. Their foundations are a tax avoidance scheme.
Also why doesn’t this disqualify religious organizations from tax exempt status under 501c3?
“no substantial part of the activities of which is carrying on propaganda, or otherwise attempting, to influence legislation”
I don’t believe most religious organizations are 501c3s, to start, and yes, it is illicit for churches to lobby for legislation.
To add to that, if a church is lobbying or otherwise involved in the political process, they can be reported and lose their tax exempt status.
In theory, yes. In practice? Not really enforced.
Still worth it to try. Eventually maybe it will get some attention focused where it needs to be.
at small scale, i would argue that they are more than inclined to help with society, local society at least. Small churches running a food kitchen on the weekend for instance.
It would be a pretty good incentive for private land owners to open up a community space on their property. Which would also positively impact the community (something i would like to do eventually)
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No, they do not. Tax exempt organizations shouldn’t be private and also exempt from government oversight. I do think that legitimate small businesses should be tax exempt to simplify beaucracy, though.
What kind of small business do you think should not have to pay taxes and why is them not paying their share worth reducing the bureaucracy?
I think that businesses below 200k annual income are probably not worth taxing outside of income taxes on employees. It’d probably spur small business entrepreneurship which I think is pretty healthy for market competition.
Completely related question.
What do you do for a living?
I’m gonna guess entrepreneur.
Same
i mean, checks out to me.
Then a government would be incentivised to write policy to benefit bigger organisations and hurt small businesses. The government would make more tax revenue if they encouraged the bigger, taxable, orgs to crush the small business and absorb their previously non-taxable market share.
You do realize there are requirements for tax exempt organizations, right? Like listing funding, top earners, etc.?
Check ProPublica’s 990 explorer
