Tax policy certainly incentivizes some activities over others.
There are always going to be some that benefit some people and not others.
For instance, capital gains taxed at a lower rate than ordinary income. Why? (I know the argument why, but it certainly benefits one type of investment over another).
The one thing you can always count on is that the biggest benefits go to the ones who have the money to buy the loopholes.
As an example, who do you think the EV tax credit is supposed to benefit? The makers of those cars (Tesla, Big 3, etc.). Congress has decided that it makes sense for the US to build the market, so that other countries don't get in early and corner the market (Japan, Germany, China). You can argue if that's a good idea or not, but its to benefit big business in the USA.
As for the enforcement argument, I am all for making sure that non profits prove that they are doing what they are saying they do. The non-profit sector has been overrun by shysters and political organizations as conduits to pay off people over the last 20 years (on both sides of the aisle). I know conservatives whined and complained lately (and got a judgment), but it seems like the latest tempest in a teacup to me.
I am on the board of the dog rescue non profit here, so I certainly don't want to have to jump through any more hoops than we do (and we haven't had any problems), but those aren't the types of non profits given to playing fast and loose with the rules.
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In response to this post by Los Angeles Hoo)
Posted: 10/30/2023 at 6:46PM