Did you know that unions are tax exempt? Yep, it’s true. I was just listening to Rush when he made that statement. Unions, under the IRS 501(c)(5) rules are tax exempt. From the IRS website, the rules under 501C5 are as follows.
If you are a member of an organization that wants to obtain recognition of exemption from federal income tax as a labor, agricultural, or horticultural organization, you should submit an application on Form 1024. You must indicate in your application for exemption and accompanying statements that no part of the organization’s net earnings will inure to the benefit of any member. In addition, you should follow the procedure for obtaining recognition of exempt status described in chapter 1. Submit any additional information that may be required, as described in this section.Tax treatment of donations. Contributions to labor, agricultural, and horticultural organizations are not deductible as charitable contributions on the donor’s federal income tax return. However, such payments may be deductible as business expenses if they are ordinary and necessary in the conduct of the taxpayer’s trade or business.
Obama says he needs more tax revenue. So, let’s start taxing unions, especially SEIU, NEA/AFT and PATCO. They’re rich. Let’s put them in the top income bracket. They should pay their Fair Share like the libs want from the “rich.”