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The people calling for nonprofits to be taxed usually have no experience or understanding of the nonprofit sector. Or government. Or tax structures. Or irony. There are not many of them, thank goodness, but they seem to be increasing in numbers lately, so I maybe we nonprofits need to do a better job preparing counter-arguments. Heavens knows what sort of destructive ideas will catch on fire next in this political climate.
Oh really? What should we be taxed on? How about to be fair, we get taxed the way for-profits are taxed? Our tax laws are complicated, but to simplify things, most for-profits are taxed on their net profits; that is, the amount they make after expenses are deducted. Well, nonprofits usually spend most of their revenues to run programs. According to this report by Urban Institute, in 2012 the entire nonprofit sector got about $2.26 trillion dollars in revenues, and spent $2.10 trillion in expenses....