Question

1. Name one change that might make the income tax exemption for not for profit hospitals more equitable or more fair relative to for profit hospitals.

Answer 1

If the nature of the exemption is changed to provide exemption only when the value of community benefits provided, as compared to say total expenses, exceeds a certain threshold, then it can be said it might make the exemption more fair or equitable.

There has to be a comparison brought in in order to ensure that the exemption is doing its job and the not for profit concerns are giving back more to the community than their for profit peers.

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