Powerful nonprofits oppose a Senate tax reform plan.

A handful of large urban hospitals and private colleges oppose a measure proposed by Senate Democrats to limit the amount of refunds they can recieve on sales taxes at $5 million a year.

They think it would set a bad precedent for tax-exempt institutions.

"You're either tax-exempt or you're not," said Tim McDowell with North Carolina Independent Colleges and Universities. "That's why I think every nonprofit should be worried about this."

But Democrats say the plan will only work if everyone gives up something.

"We're not trying to gore anybody's ox here in particular. But we're just saying we have got to have some help from all segments from our economy," said Sen. David Hoyle, D-Gaston, co-chair of the Senate Finance Committee. (AP)