Hi Lowell, Although it is insufficiently appreciated by the public, taxation of corporations works against the public, and especially against low income members of the public, by forcing up prices of goods and services provided by those corporations. The profit rate on sales, before and subsequent to the imposition of the income tax, has always been about the same, however, imposition of such taxes has raised prices (and, therefore, after tax corporate profits) and reduced the purchasing ability of the public. The people least affected by such taxes are the rich, since their purchases, as a percentage of their total income, are the smallest, while their incomes from corporations are the largest. Politicians neglect to reveal these truths, because it works to their advantage to conceal the true impact of taxes on the economy and on the public. If you doubt the accuracy of these representations, I urge you to do your own investigation, or to inquire of any economist you respect (listening closely to his answer, if he works for a politician). Have a great day. Laurie Carhart, Lowell wrote: > Folks, > > It is worth knowing that creating a tax exempt organization is not > quick, > cheap, or easy. Forming a legal corporation in NJ *is* very quick and > easy, > and has but a modest fee. However, applying for tax exempt status, > submitting the required annual reports, and maintaining the proper > ratio of > small and large donors *is* very time-consuming and expensive. For > example, > the entity could not maintain its 501(c)(3) tax exemption status with > just a > few large private donors. The law requires a somewhat complicated > ratio of > small to large donors. This is to prevent rich folks from forming > their own > non-profit companies and then funding/running them on their own. By > requiring a broad range of donors, this sort of abuse is curtailed, > and also > increases the likelihood that the non-profit will benefit a wider > group of > people. There are certain exceptions to the funding rule when the > only/largest donor is a government agency. However, the aim here I > believe > is to get private (non-government) funding. If that is the case, then > > attempting to form and run a non-profit for the sake of $1,500 would > not be > cost-effective. It would cost more than that just to incorporate, pay > > set-up fees, and pay for accountants to maintain the paperwork, and > certainly none would go to the project at hand. > > I learned all this from my efforts to form the Topanemus Society which > was > *going to be* a non-profit to help restore and maintain the Topanemus > Cemetery. There was no way that I was going to get 100 - 200 folks to > donate > ~$20 a year to maintain the correct small donor / large donor ratio, > even > though I already had three $500 annual donors lined up. Even having > those > three donors and a handful of small donors was not enough to preserve > the > 501(c)(3) non-profit status. Also, you don't get the 501(c)(3) status > > awarded for several years after applying. The government is not making > it > easy to not pay taxes. <wink> > > Kind regards, > Lowell > > > -----Original Message----- > > From: Teddies96@aol.com [SMTP:Teddies96@aol.com] > > Sent: Saturday, March 25, 2000 9:38 PM > > To: NJMONMOU-L@rootsweb.com > > Subject: [NJMONMOU] Check out Types of Tax Exempt Organizations > - IRS > > > > <A > HREF="http://www.irs.ustreas.gov/prod/bus_info/eo/eo-types.html">Click > > > > > here: Types of Tax Exempt Organizations - IRS</A> > > > > Hi. I would think it best to apply for tax exempt status on our own > and > > then > > we could take checking into funding further. Here is a link to tell > you > > more > > about who is qualified for tax exempt status. > > > > Fayth