Excuse the Criminals; Punish the Do-Gooders

Posted by Laura Otten, Ph.D., Director on May 7th, 2010 in Articles, Thoughts & Commentary

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Now, I am really pissed (it’s my blog – I can say that).  I recently wrote about jurisdictions around the country suffering from insufficient resources that are look to nonprofits to fill some of the gaps.  Perhaps through rescinding tax exemptions of the past or by creating new taxes on their services (i.e., beds in hospitals, tuition payments to colleges and universities, etc.)

Case in point: the headline “Delinquents get a break in tax amnesty.”  It seems that Philadelphia and the Commonwealth of Pennsylvania are giving those who owe back taxes (dating back as far as 1986!) 54 days to step forward, pay their taxes and have all penalties waived and only have to pay half of the interest owed.  It is anticipated that this amnesty program will raise $25-$30 million for the city and $190 million for the state.

I am not going to bother to do the math, but imagine what each jurisdiction could raise if they weren’t giving law breakers—yes, last I heard it was still a legal requirement that you file a tax return every year and pay whatever money is owed the respective government–relief.   Imagine if they had to pay all they owed and 100% of their penalties and interest.  Wouldn’t that add a little fat to government coffers?

Tax amnesty programs are not new, and they certainly aren’t unique to Philadelphia and Pennsylvania.  But at the same time that jurisdictions are offering businesses tax amnesty programs they are crying so poor that they need to rescind property exemptions for nonprofits and create new tax programs for nonprofits (i.e., hospital beds, college and university tuition).  Something here does not compute!  Nonprofits have not broken any laws whatsoever.  In fact, the vast majority of nonprofits of which I am aware have continued to work extremely hard to fulfill the promises of their mission despite huge loss in funds to support that work.  What are governments talking about doing in exchange?  Increasing their operating costs by rescinding tax exemptions and adding new ones.  Where is the logic in this?

Perhaps on some planet, or in some person’s brain, it makes sense to add to the burden of those who are already strapped, but continue to do their good works, while letting off the hook those who have spent years, and in some cases decades, being scofflaws.  It just doesn’t work in mine.  In fact, my mind wanders to questions like, “Whose palm is being greased?” and “What deals have been brokered?” and “In whose employ will these politicians land once they leave elected office?”  Because shy of that, I can find neither rhyme nor reason to understand excusing criminals while punishing the do-gooders.

The opinions expressed in Nonprofit University Blog are those of writer and do not necessarily reflect the opinion of La Salle University or any other institution or individual.

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