Just yesterday I learned that one of the most onerous tax increases of 2017’s alleged “tax cut” was levied against non-profit organizations’ endowments, which the IRS classifies as “unrelated income”
Prior to the 2017 bill the rate was 15%
After the 2017 bill the rate became 21%
6/15 x 100 = a FORTY PERCENT tax increase.
Thank you, William “Bedsheets” Byrd and your d@mn “revenue neutrality.”
UBT is a charity competing with a for-profit company. They SHOUKD pay the same rate as a corporation (21%), so as to not have an unfair advantage. They are still tax free on income from related activities. So if a private school charging tuition...but if that school ooens a laundromat, which competes with Joe’s laundromat down the block, then it should be taxed on it’s laundromat income to the same degree as Joe.