operated exclusively for religions, charitable, educational and scientific purposes, amongst many others. According to a 2016 New York Daily News article, at least four organizations raised nearly $8 million in tax-deductible donations over a period of 10 years. Amongst these organizations is the National Policy Institute (NPI) which is led by Richard Spencer. Spencer is considered by many as the leading voice of the alternative-right (alt-right) movement, a well-known white supremacist group who is credited with co-organizing the Charlottesville “Unite theRight” rally. Operating under deceptive qualifying purposes, NPIs agenda leverages their nonprofit tax exemptions by registering as an educational organization. The IRS has since revoked NPIs nonprofit registration, but the reason of revocation is because Spencer failed to filehis 2017 tax returns and not because of the controversies surrounding the deadly rally. NPIs status as a nonprofit organization has since sparked further discussions – is there a level of acceptability when considering the right to peaceful assembly and free speech?
THE SCIENCE OF MORALITY4Moral DilemmaAs we explore the level of acceptability for Americans to exercise their rights to free speech, expression, and assembly; the general public would assert that the U.S. Constitution places no limitations to the context of the first amendment. Given this point, the debate on human values and morality must now consider where nonprofit tax exemptions for radical racist organizations stand on the moral landscape. This essay argues three reasons why the white supremacy organizations and other radical racist organizations should not be granted tax exemptions. The federal government risk potential revenue loss when taxes are exempted, affecting overall fiscal budgetsTax exemptions represent public subsidies at the cost of tax paying citizensTax-exempt status serves as the federal government endorsement of nonprofit organizationsAs a tax-paying citizen, it is difficult to rationalize the severity of impact when organizations are awarded tax-exemptions and how they affect the overall budget of the federal government. Although difficult to calculate, the impact of deceptive practices by such organizations does impact the federal government’s budget, during a time that requires balance toAmerica’s fiscal budget. Assuming the impacts, any associated loss in revenue directly affects the proper allocation of funds which can be better resourced in other areas of the country, such asinfrastructure, education, or improving military capabilities. As a secondary point, tax exemptions are primarily awarded to organizations who support charitable activity. These activities are commonly accepted because these types of organizations provide necessary goods to needy populations, promotes diversity and relieves the burden on federal government,
THE SCIENCE OF MORALITY5amongst many others. As an example, organizations such as NPI are awarded tax-exemptions in
- Winter '18
- Taxation in the United States, United States Department of the Treasury