Thursday, December 29, 2011

Tax the rich? Why not go after foundations that use tax code to profit themselves

501(c)3 corporations were created to help organizations such as churches and small charities avoid taxation for the work they do in helping the American people.  Unfortunately, the tax code is now so convoluted, that organzations such as the AARP can sell themselves to endorsements, to the tune of $600 million, and call it 'charitable benefits'.

Congress is attempting to fight back, but in this case, AARP may have the upper hand.  As a billion dollar non-profit, they have the resources to defend themselves quite easily from what is being deemed as an attack by the government to have the IRS re-evaluate their non-profit status.

Three members of Congress have shot a cannon at the American Association of Retired Persons (AARP). Republicans Herger (CA), Boustany (LA) and Reichert (WA) sent a letter to the head of the IRS asking that the tax status of AARP be reviewed. – Bruce Krasting via Zerohedge

AARP has come under fire in recent years for using its funds to support Obamacare, which will have a vastly negative result for their customers and members.  And like most Unions, foundations that act under the tax-exempt 501(c)3 protection end up being cash funnels for politicians, at the detriment of citizen representation.

Taxing the rich is a feel good proposition, but if you want to protest organizations that rake in serious dollars at the detriment of the common man, 501(c)3's may be the first place to look.
Just go ask your local mega-church Pastor who lives in a million dollar home, with private jets, and compounds while their congregations are without jobs and income.

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