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Hospitals that make profits should pay taxes


As diligent taxpayers breathe a sigh of relief that the hassle of filing their tax forms is over for another year, the Internal Revenue Service continues

The agency uses a vague “community benefit” standard to liberally grant tax-exempt status to so-called nonprofit hospitals even as many of them are financially taking advantage of sick Americans with inflated medical bills. In August, a bipartisan group of U.S. senators including Bill Cassidy and Elizabeth Warren demanded more transparency from the IRS on the issue after a General Accountability Office report found that the agency “did not have a well-documented process” to ensure that hospitals met tax-exempt criteria. Instead of scolding Americans who sign up for direct primary care or want to eat healthier foods, the IRS should hold hospitals accountable for the taxes they should be paying.

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