As the red ink gets deeper and thicker, some states are considering raising additional revenue by imposing taxes on tax-exempt charities.  New taxes on charities are being considered by Hawaii (1% franchise tax), Pennsylvania (property tax), Kansas (sales tax and property tax).  Nonprofit organizations say that taxing them reduces money that would otherwise be used to pay for goods and services that supplement what government provides with the result that the public suffers in the long run.  See the New York Times story called “States Move to Revoke Charities’ Tax Exemptions.”

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