There is finally some recognition of the incredible abuse of non-profit, tax-exempt status to pay executives millions in annual compensation. These people are paid like they are in a for-profit and typically deliver far worse results. This happens frequently in non-profit health care organization and also in other non-profits. It is a tactic used by Dems to funnel money through the organizations to managers who will then donate back to the Dems. Congress and the IRS have attempted to address the abuse on a federal level; states like Minnesota will never do so because it is part of the Dem strategy to stay in power. Now the IRS is proposing an even stricter regulation of this compensation, but it won’t come close to ending it.
The new rule would continue and extend the current practice of imposing a higher tax on “excess” executive compensation. Excess compensation should be completely banned, not taxed. The current law and rule apply to the five highest compensated persons, the change would apply to any person earning more than a million dollars in compensation a year. That is crazy. There is no excuse for any executive in any non-profit or tax-exempt organization earning more than around $200,000 a year. If you want more compensation, go work in the for-profit sector. (IRS Proposed Rule)
