Thursday, May 16, 2013

The Real IRS Problem Should Be On The Table

The IRS got in trouble by focusing on small conservative organizations that applied for tax exempt status.  That was a serious mistake, but it is not the worse mistake that we make.  Many conservative organizations and liberal organizations are primarily involved in political activity but they have tax exempt status.  The rules for granting tax exempt status are ambiguous.  They have to demonstrate that more than 50% of their work is not political and that it benefits the public welfare.  It not easy to distinguish political production from genuine research and public education.  In fact the largest conservative groups, engaged primarily in political activity, were granted tax exempt status.  Groups that receive the 504 designation are able to accept unlimited funds from wealthy contributors without the requirement to reveal the names of their contributors.  That is a part of the infamous Citizens United decision by Supreme Court that should be changed by Congress.  Moreover, many of the tax exempt think tanks that pollute our environment with political or ideological propaganda do not deserve tax exempt status.  The public does not benefit from their "research".  Taxpayers should not be asked to pay for their propaganda.  If the super-rich want to disseminate propaganda they should pay for it themselves.

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