Quote:But who decides whether they are out for a profit or not? What if the person organizing and starting up the "charity" pays himself a million dollar salary? What if they like to travel all over the world first class? What if they hire their daughter to help them run it? What if they hire their friends and pay them hundreds of thousands of dollars in salaries? At what point does it become a profit making organization?

All of those people pay income taxes. We're talking about taxing institutions and entities, not individuals. The concept you're talking about is fair use; what is the equivalent in compensation for the use of equipment owned by a non-profit and how do we tax the individual for that use?


These arguments are exactly the reason that we need consumption taxation, Uncle Sam gets his cut when the money is spent, period.

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