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High Cost of the Non-Profits Industry

Under the Virginia State Constitution it's illegal to give public funds to non-profits - a law ignored at every level of State government.

Here in the Appalachian region of the Virginia non-profits are a big business racking up tens of millions dollars in government grants mostly under the guise of economic development. Most produce little for the public, but create jobs for themselves. We are not alone.

The number of organizations that can offer their donors a tax break in the name of charity has grown more than 60 percent in the United States, to 1.1 million, in just a decade. The $300 billion donated to charities last year cost the federal government more than $50 billion in lost tax revenue. The I.R.S. approves 99 percent of the applications for public charity in 2008 according to a new study at Stanford University.

My question is why should hospitals and educational institutions be tax exempt anyway? They charge fees and earn income - that makes them a business!

Representative Xavier Becerra a California Democrat says, "It's not free and so we need to do something to make sure taxpayers are getting a big enough benefit in return." Most of the article goes into the shear number of charities and how easy the process is. According to NYT the tax code defines public charities as organizations that are "religious, educational, charitable, scientific, literary, testing for public safety, to foster national or international amateur sports competition or prevention of cruelty to animals."

How does the non-profit industry fit that here?

That could mean almost anything and "less than 5 percent of the applications for public charity status were turned down" even if they bother to check them out" according to the NYT. Even the IRS sates, "most new charities are more akin to the soccer group than the hospital." What that means in the Bristol Virginia and Southwest Virginia community is a massive public, but shadowy industry that evades millions in property and other taxes and delivers nothing to the average citizen. Many operate as an often closed mini-economy often economically and socially severed from the general community. Ref. New York Times December 6, 2009


Mass Immigration Killing the Working Poor Here Too

Immigration reform will cause even more misery for the working poor as an additional 22 million more guest workers over the next decade will further displace native born low-wage workers and already have in East Tennessee and Tri-Cities. Low-wage black workers have been driven out of the labor force across the nation by immigration and the same thing is happening to poor whites in our region as employers hunt for more cheap-exploitable labor.

In fact this has been recommended to business as a way to lower labor costs in the tourist-retirement related industries this region is promoting. Simply put they want to bring in even cheaper labor to displace the working poor that already dominates our private sector labor market. The working poor are ignored and marginalized already and so the system of social apartheid will continue to flourish.