An interesting observation on the ongoing debate about tax reform here in North Carolina: Nonprofits, especially hospitals, are objecting to a cap on the sales tax refund proposed in the current reform plans. Why? In large part, because they say the added tax burden will force them to cut jobs. The NC Hospital Association has stated the new tax plan:
“would mean that hospitals would lose hundreds of millions of dollars that are currently devoted to caring for the patients in North Carolina and employing caregivers.”
A representative from the NC Center for Nonprofits declared:
“The nonprofit sector is unified in its belief that the Senate tax plan will result in substantial program cuts, reduced services, and job loss in nonprofits, which will be felt in communities across the entire state,”
The president of High Point University added:
“When you talk about taxing nonprofits, you are talking about cutting services, because we have to make up the money somehow…It would mean cutting scholarships or jobs or cutting programs.”
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