Those claiming that taxing the non-profits will lower the property taxes paid by individuals have a charming naivet . Nor is there any guarantee that citizens will receive services equal in value to the additional funds extracted from the private sector. Additional tax revenues are often wasted. Still, sensible tax systems tax everyone, and every enterprise, at the same rate. Call this game divide and conquer.
Politicians play it ceaselessly and tax rates ratchet upwards.
Tax exempt organizations also play with great enthusiasm. Many of them are charity case themselves, receiving huge fractions of their budgets from government. They lobby ceaselessly for more and support the expansion of government power. Making them bear the full cost of their actions has been undeniable appeal. This means higher housing prices, lower wages, and lower land rents.