Conservative legislators must defund the left at every opportunity. One such opportunity comes in the form of the level of asset payout that tax-exempt foundations must comply with in order to retain their exemption.
Through the tax code, we allowed tax-exempt foundations to have eternal life, and to have an unaccountable voice to advocate for policies they favor. Foundations do not have shareholders who can vote for a new Board of Directors, they do not have customers who can boycott to force a change in direction or attitude. What they do have is a self -sustaining, self-appointing Board. Further, if a foundation is sufficiently endowed, if it earns more in investment income than it is required to give away each years (only 5%), then the foundation has eternal life.
The solution is to make foundations mortal again. Raise the 5% payout to 7 1/2%. Foundations will then eventually spend themselves out of business. We will benefit from the increased tax revenue that generates. We benefit as a nation. The founding fathers never envisioned unaccountable voices in the public square, let alone ones exempt from all taxation.
With this boost, existing foundations would push 50% more money out into their recipient base each year. The downside is that leftist causes would get more funding. The upside is that soon those foundations would have spent-out their assets and would be out of business. The other upside is that tax-exempt foundations hold an estimated 4% of the GDP in their portfolios and forcing this money out of investment s and into the economy would create jobs and tax revenues for government at all levels.
I would say this is killing two birds with one stone and in the long run helps to defund the left.
There will be no foundations at all ~ and the money and other accumulated wealth will be recycled instantly into productive enterprise.