What Would Happen If Tax-Exempt Status was Abolished?

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How many billions of dollars in additional revenue would be generated if the Rockefeller, Carnegie, Ford, Gates, Soros  and plethora of other grant-making foundations had to pony up  like individuals and corporations do?

It could be done by Executive Order.  Just a simple sentence stating that tax-exempt status is revoked.  After all, it’s where the money is.   ~LTG                      This pdf has active links     IRS SOI Data on Tax Exempt Foundation

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5 responses to “What Would Happen If Tax-Exempt Status was Abolished?

  1. This might require more than a knee jerk response. The tax exemption only remains if they give away about the same amount as they would otherwise pay in taxes. Therefore, much of the good work these foundations would be handled by the government, if at all. Sure, lots of the stuff foundations support is junk. Consider pork from Congress. Lots of the time, it’s the same sort of funding of outrageous research (mating habits of grasshoppers, as a single example), but that’s a risk in having rules that govern all of a behavior in society. If we are to allow freedom of speech, we are of necessity, going to hear lots of stuff we consider offensive, and I’m not talking pornography, I’m talking philosophy.

  2. There is always abuse of a good thing. There are so many good charitable organizations who would be having great trouble if you took their tax-free status away. What about the churches as well?

    • lowtechgrannie

      I wasn’t thinking of churches, Joan. I was thinking in terms of the McCarran Report that found the Rockefeller & Carnegie Foundations, through grants and funding, materially helped Stalinist expansion into Asia. The McCarran Hearings were followed up by the Reece Committee investigation to look at whether these foundations promoting and funding UnAmerican activities should continue to receive tax-exempt status. Ultra-wealthy individuals shelter their money by creating foundations where they exercise complete control over the projects and objectives they choose to fund.

      Michael Moore proposed taxing the wealthiest individuals. The wealthiest individuals; Gates, Buffett, Rockefeller, Soros, etc. have their money stashed in tax free foundations. So,tax the foundations. After all these decades with them having free reign, look at our situation.

  3. lowtechgrannie

    Wish I’d found this when I originally posted the article. Here’s a quote from a great source:

    “Tax-exempt colleges, for instance, must demonstrate their worth byattracting students. Churches won’t survive without churchgoers who find value in their teachings. But grantmakers
    never seem to have a problem attracting grantseekers. When was the last time someone turned down a foundation grant because he doubted the grantmaker’s record of accomplishment or thought it was guilty of ideological bias?

    What’s to be done? Holcombe concludes that there is no good reason why tax law should favor the creation of foundations. Charities don’t even depend heavily on foundations: foundations grants—an estimated $22.8 billion in1999—are a fraction of annual philanthropic giving—$190 billion in 1999.”

  4. If the Feds have raided Medicare and Social Security trust funds, they have my blessing to open the piggy banks of Robber Barons, past and present.


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