Submitted by Nergaal t3_1135f9j in technology
Badtrainwreck t1_j8u4fo2 wrote
Reply to comment by voyageur77 in Elon Musk donates almost $2bn of Tesla shares to charity by Nergaal
Some of what I’m saying is the expression of parts of the system, not that every part of it “avoids taxes” we are talking about 501c3s as a whole. The avoiding taxes is from a part of the discussion where instead of my dying and leaving you a company which is at risk of the estate tax, I can create an entity which I give you control over and it avoids the tax, because it’s not longer inheritance it’s just transferring control of the create entity.
The IRS says you can be reasonably compensated, but again this isn’t the point or the issue, because what billionaire is “reasonably compensated” because Jeff Bezos is paid 88,840 but is that the limits of his worth? If salary is the end all be all then I’m absolutely wrong, but if you’re a major shareholder of a company, and you donate money as a write off to a company that then spends that money on increasing the value of your asset, raising the value of the charitable work they do on the books and they transfer that into stronger lobbying ties then you’re still using a nonprofit in a legal way that is still in your own interest.
That’s the problem, not billionaire bad, not system broken I now cry, but nonprofits have almost no real oversight and there are plenty which operate as if they are for profit organizations.
This is just about the fact that there is a real system in which nonprofits can be useful for enriching yourself
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