Need more tax revenue? Tax the unions!

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.

501(c)(5) – Labor, Agricultural and Horticultural Organizations

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.”

5 thoughts on “Need more tax revenue? Tax the unions!

  1. Scott, perhaps that would be enough for the rank 'n file to seize power once again. Or drop out. The operation of the unions is not for the benefit of their members. The unions are instruments of political power regardless of the wishes of the membership.

    I've been a union member. All my family were union members. I know quite well the tactics unions use to control their members and few of them are legal.

    There's an old joke about unions that's older than me.

    "What's the difference between a union and the mafia?

    The unions allow non-Italians to be members."

  2. I've been an unwilling union member, too – collective bargaining is another so called "great idea" that has become a "really bad idea" due to greed and corruption. Someday I'll tell you a great anti-union story – I'd better keep that one offline, though…

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