HOW YOUR TAX DOLLARS HELP RADICALS ATTACK OUR ENERGY, INDUSTRIES, JOBS AND LIVING STANDARDS
by Nick Nichols, ©2013
(Oct.
2, 2013) — If you believe future IRS abuses will be prevented by
putting Lois Learner and her merry band of political hacks in the
hoosegow, stop drinking Potomac River Kool-Aid and start partaking in a
dose of reality.
The most effective way to eliminate political hackery at the IRS would be to abolish the so-calledprogressive income
tax and completely dismantle the tax agency. Too draconian? Only if you
believe the Tea Party purge is the solitary scandal rolling around the
halls at the IRS. It’s not.
The
fact is, the system is corrupt to the core. To illustrate, consider
Lois Learner’s old haunt at the Tax Exempt and Government Entities
Division. When the IRS bureaucrats determine that an organization is a
501(c)(3) tax-exempt group, that group is excused from paying federal
taxes and contributors to the group are allowed to deduct contributions
from their taxable income.
Those Americans who actually pay federal
taxes must make up what the US Treasury loses as a result of the tax
exemptions. Moreover, once the IRS determines that a group is
tax-exempt, that group is excused from paying taxes (including property
taxes) in at least thirty-nine states.
Consider
these facts from the National Center For Charitable Statistics about
501 (c)(3) Public Charities. In 1988, 10,215 organizations filed with
the IRS as 501(c)(3) Public Charities. They reported combined revenues
of $29.8-billion. By July, 2013, organizations filing as 501(c)(3)
Public Charities amounted to 357,167! These tax-exempt groups reported combined revenues of $1.6-trillion and assets of $2.9-trillion.
Calculating
the amount of federal and state tax revenue lost as a result of tax
exemptions is way above my pay grade. I would guess the federal and
state revenue loss exceeds one-trillion dollars annually. Who gets
stuck paying for this loss? The American taxpayer. Talk about
redistribution of wealth. Need I remind you that in 2011 only 53% of American households actually paid federal income taxes?
Allow me to add insult to injury. The uncivil servants at the IRS and their progressive allies
on Capitol Hill have corrupted the definition of “public charities” to
allow activist groups to feed at the trough of the American
taxpayer. For example, 13,716 US-based environmental groups filed as
tax-exempt 501(c)(3)s in 2010. Their combined revenue was $7.4-billion.
Their total assets equaled $20.6-billion.
In
2012, the Environmental Defense Fund (EDF) reported $112-million in
revenue and $173.1-million in assets. EDF has been tax-exempt since
1969. In 2011, the Natural Resources Defense Council, Inc. (NRDC)
reported $97-million in revenue and $248.9-million in assets. NRDC has
been tax-exempt since 1970. Three tax-exempt Greenpeace organizations in
the U.S. reported $39.2-million in revenue and $20.6-million in assets
in 2011.
I
wonder whether the tax-paying coal miners of West Virginia realize that
they are subsidizing progressives intent on destroying their jobs? Do
they consider Greenpeace charitable? I can’t speak for the coal miners,
but I can confirm that both New Zealand and Canada have stripped
Greenpeace of its charity status.
What about unemployed union workers who
have been denied jobs on the Keystone pipeline? Is it fair and just
that they have to pay taxes while the progressive activist groups
lobbying against pipeline construction avoid state and federal tax
collectors?
Progressive environmental organizations aren’t the only radicals feeding
off the beleaguered taxpayer. People for the Ethical Treatment of
Animals (PETA) has been tax-exempt since 1981. Last year PETA reported
$31-million in revenue and $16-million in assets. For those who have
been victimized by the radical animal rights group, how does it feel to
be forced to subsidize your adversary?
The
Ruckus Society trains protesters to disrupt public events and engage in
civil disobedience. Yes, Ruckus has been tax-exempt since 1996. Three
years later it helped train radicals to rain havoc and rampant property
destruction on Seattle during a World Trade Organization
conference. Very charitable, wouldn’t you agree?
One
final example: The Council on American Islamic Relations (CAIR) which is
alleged to have links to Hamas, a State Department designated terrorist
group, has at least thirteen 501(c)(3) tax-exempt groups in the USA.
During 2011, CAIR reported $8.7-million in revenues and $6.4-million in
assets. It also boasts a multi-million dollar lobbying
organization. Isn’t it ironic that the IRS saw fit to declare CAIR a
Public Charity worthy of tax-exempt status, while putting the Tea Party
through the wringer?
Once
the Congress finishes its investigation of the IRS Tea Party scandal, it
would do well to take a comprehensive look at how “charity” is defined
for the purpose of granting tax exemptions. Failure to do so will
amount to taxation without representation for millions of real American taxpayers.
_____________
Nick
is a retired crisis communications executive. He also developed and
taught graduate-level crisis management courses at the Johns Hopkins
University. Nick is the author of Rules for Corporate Warriors: How to Fight and Survive Attack Group Shakedowns. He is a former Deputy Secretary of Revenue for the State of Wisconsin.
Donald Hank comments: Nick Nichols is right. But he omitted the main culprit: 'churches.' The moment we stop giving churches tax exemptions, the phonies will fall by the wayside, the True Church will tighten its belt and be reinvigorated and there will be a spiritual revival in our land.
ReplyDeleteDon Hank
Please PASS. We MUST kill off the IRS or it will kill us all off.