Sunday, May 12, 2013

The action of the  IRS making it difficult for conservative groups such as the Tea Party to get tax exempt status is obviously wrong.  No particular group should be discriminated against when applying for something from the government.  An investigation is needed to see how high  the order came from or was it something that a group of bureaucrats decided to do it themselves. But beyond that, why do any group of people or institution get tax exempt status anyway?

I found 10 major ways to get tax exempt on the internet.  The most troubling to me is religious organizations.  I mean, if we have separation of church and state, then why do we give favor to churches.  I understand that the law does not favor a particular religion.  But then how do you decide what is a reasonable religion and not a dangerous cult?  It maybe reasonable for the money raised for charity work by a church to be exempt.  But what about the money raised to try to get more members?  I don't think the government should be helping any church to increase its membership.  Another way that is just troubling is exemption granted to labor unions for various activities such as "educating members".  This is basically a way of promoting unions which lead to increase membership.  In fact, using money for education purpose seem to be a popular way for an organization to get exempt status.  Again, it is not the business of the government to increase any organization's membership, in my opinion.

There maybe public good that come out of exempting certain organizations.  But I think in most cases the benefits are questionable at best.  Since both the Republicans and Democrats claim that they are for simplifying the tax code, getting rid of the tax exempt status laws would be a good first step.  Why do we let the IRS make judgment calls of what groups of citizens get such a big tax advanatage?

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