๐ก๏ธUS Tax Exemption Plan๐ฑ๐ช
While it may generate additional revenue for the government, it's essential to consider the potential impact on nonprofit organizations and their beneficiaries ๐ค.
๐ Current State: ๐คฏ The US has a massive $3.3 trillion tax-exempt economy, comprising 15% of GDP and spanning over 1.8 million organizations.
๐ซ Reform Needed: ๐ Lawmakers are calling for a principled, rules-based approach to narrow the scope of qualified tax-exempt entities.
๐ธ Potential Revenue: ๐ธ Taxing the business-like income of nonprofits could raise nearly $40 billion annually.
๐ Key Sectors Affected: ๐ฅ Hospitals, universities, credit unions, and insurance companies are among the organizations that could be impacted by the reform.
๐ Pros:
Increased revenue for the government ๐ธ
Reduced tax burden on other sectors ๐
Encourages transparency and accountability in tax-exempt organizations ๐
๐ Cons:
Potential negative impact on nonprofit organizations and their beneficiaries ๐ค
Increased complexity in tax laws and regulations ๐
There has been a market pull back right around the us tax exemption plan